Gildan Activewear Inc

GIL: XTSE (CAN)
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Gildan Earnings: Expectations Exceeded as Hanesbrands Integration Underway; Shares Undervalued

Proforma for the Hanesbrands acquisition, Gildan's first-quarter sales fell 9% on planned inventory reductions and some demand weakness. Adjusted gross margin rose 180 basis points to 33%, but adjusted operating margin fell 470 basis points to 14.3% on Hanesbrands' higher operating expenses.

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