Gildan's pro forma second-quarter sales fell 8% due to intentional inventory reduction and demand weakness late in the period. Due to Hanesbrands' impact, Gildan's adjusted gross margin rose 3 percentage points to 34.5% but its adjusted operating margin declined 40 basis points to 22.3%.
Gildan has dominant market share in printwear basics and has invested in a low-cost production and distribution process to maintain its position. Demand for imprintables has recovered since a significant drop during the pandemic.
The Hanesbrands deal is the largest in Gildan’s history and brings execution risks. Hanesbrands has had inconsistent results over the years, and the branded basics market is competitive.
|
Metric
|
GIL
|
GAP
|
UAA
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.46 | 11.39 | 34.13 |
Price/Book Value | 2.88 | 2.04 | 1.58 |
Price/Sales | 1.92 | 0.55 | 0.46 |
Price/Cash Flow | 15.54 | 4.26 | 88.63 |
|
Metric
|
GIL
|
GAP
|
UAA
|
|---|---|---|---|
Quick Ratio | 0.57 | 0.77 | 0.80 |
Current Ratio | 1.93 | 1.82 | 1.81 |
Interest Coverage | 2.34 | 18.11 | −3.51 |
|
Metric
|
GIL
|
GAP
|
UAA
|
|---|---|---|---|
Return on Assets (Normalized) | 7.94% | 10.03% | −7.69% |
Return on Equity (Normalized) | 23.45% | 33.73% | −22.00% |
Return on Invested Capital (Normalized) | 12.24% | 13.24% | −9.74% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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HMRZF
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United States