Gildan’s Supply Chain Investments Have Brought a Cost Advantage in Printwear

We assign a narrow moat rating based on a cost advantage to Gildan. We believe it has built and efficient supply chain that differentiates it from competitors. Although it is difficult to attain a cost-based edge in the apparel industry, we believe that the firm’s investments in its vertically integrated supply chain have allowed it to gain one in the production and distribution of t-shirts and fleece for the North American printwear industry. While this is a niche market in apparel, it has become a highly profitable one for Gildan as it has relentlessly lowered costs while gaining market share.