Gildan Has a Cost Advantage in Printwear While Hanes Addition Brings Branded Share Leaders

We assign Gildan a narrow moat rating based on a cost advantage. We believe the company has built an efficient supply chain that differentiates it from competitors. Although it is difficult to attain a cost-based edge in the apparel industry, we believe Gildan'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. The market has become a highly profitable one as Gildan has relentlessly lowered costs while gaining share.