Gildan Activewear (PPAI 250187, Platinum) – the No. 10 supplier in the PPAI 100 – has reported a 2% increase of net sales to $3.271 billion for 2024, a year which saw a lengthy leadership tug-of-war resulting in mass resignations of the board of directors and the return of co-founder Glenn Chamandy as president and CEO.
However, net earnings for the full year declined about 25% from $533.6 million in 2023 to $400.9 million in 2024.
- Gildan’s activewear division, which includes branded merchandise, increased sales by 6% in 2024 to $2.831 billion.
- Sales in the hosiery and underwear category were down 17% compared to 2023, “mainly reflecting the phase out of the Under Armour business, less favorable mix and broader market weakness in the underwear category.”
- The Montreal-based company generated gross profit of $1.004 billion, up $124 million from 2023.
- Selling, general and administrative (SG&A) expenses rose $60 million largely due to the proxy fight, which lasted from December 2023 to May 2024.
“This past year has been a testament to the collective strength and dedication of our global team, the loyalty of our customers and the ongoing support and trust of our shareholders,” Chamandy says.
“Reflecting on our full-year performance, it’s clear that our success has been driven by our unwavering focus on executing our GSG strategy. By reinforcing our core competencies as a low-cost, large-scale, vertically integrated sustainable manufacturer, we continued to enhance our competitive advantage, and we are well positioned for continued growth in the years ahead.”
Glenn Chamandy
President/CEO, Gildan
Record Q4 Results
Gildan reported that net sales in the fourth quarter of 2024 reached a record $822 million, up 5% over the prior year.
- Activewear sales increased 11% to $714 million in Q4.
- However, net sales in the hosiery and underwear category were down 23% in Q4 due to the phase out of the Under Armour business.
- The firm generated gross profit of $253 million in Q4 versus $237 million in Q4 of 2023.
In line with the full-year trend, net earnings for Q4 declined about 14% from $153.3 million to $132.3 million.
In its 2025 outlook, Gildan said it expects revenue growth for the full year to be up mid-single digits and net sales for the first quarter of 2025 to be up by low single digits year over year.
(More) Leadership Changes
Gildan has also announced the following executive leadership nominations and a CFO transition as part of a multi-year succession planning process:
- Chuck Ward, currently president of sales, marketing and distribution, has been appointed to the newly created role of executive vice president, chief operating officer, effective March 1.
- After almost 10 years in the EVP, chief financial and administrative officer role, Rhodri J. Harries, has informed the board of his intention to retire on January 1, 2026.
- As a result, Luca Barile, currently CFO, sales, marketing and distribution, will succeed Harries, effective March 1, 2025. To facilitate a smooth transition over the next 10 months, Harries will retain his chief administrator officer role until his retirement.
“I would like to express my deep appreciation to Rhod who has guided our financial performance through many key phases for our company,” Chamandy says. “Since 2015, he has been an invaluable partner to me, his executive peers and to his teams. He has safeguarded the Company’s solid financial position through disciplined capital allocation, contributing to the achievement of our long-term financial objectives and setting the stage for the future.”
“I’m very pleased to welcome Chuck and Luca into their new roles, appointments that are a testament to our internal bench strength and the effectiveness of our multi-year succession planning efforts,” Chamandy adds. “They are both outstanding leaders who are well positioned to step into their roles as we continue to achieve our financial goals, pursue the next exciting stage in Gildan’s growth strategy and drive enhanced long-term value for our stakeholders.”
