Gildan Earnings: Results Overshadowed by Ongoing Fight for Control; Shares Fairly Valued

No-moat Gildan confirmed its preliminary release on April 15 (see our note) with a first-quarter sales decline of 1%, a bit better than our estimate of a 3% drop. The firm also held to its prior 2024 guidance for flat to low-single-digit percentage revenue growth and adjusted earnings of $2.92-$3.07. Given the results and Gildan’s solid execution in printwear, we expect to lift our earlier $2.99 EPS estimate by about $0.10, which should result in low-single-digit percentage increases in our fair value estimates of $31/CAD 42, leaving shares slightly overvalued.