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Gildan Activewear Inc GIL Stock Quote

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Morningstar‘s Stock Analysis GIL

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

No-Moat Gildan Is Investing in Operations as Demand for Printwear Returns to Normal Levels

David Swartz Equity Analyst

Business Strategy and Outlook

| David Swartz |

In our opinion, Gildan Activewear lacks a moat, which has put it in a difficult position as it navigates disruption from the coronavirus and inflation. While Gildan began a private-label men’s underwear contract with wide-moat Walmart in 2019, we believe this product has largely replaced Gildan-branded underwear and only partially offsets losses in other areas. We think narrow-moat Hanesbrands and Fruit of the Loom have stronger innerwear brands, allowing them to hold significant shelf space at Walmart, no-moat Target, and other critical retailers. Mass retailers reportedly account for more than 60% of total underwear sales in the United States. Gildan has purchased a few notable brands, including Gold Toe (socks) and American Apparel (inexpensive fashion/printwear), having invested about $500 million in acquisitions since 2014. Gildan, though, no longer reports branded apparel as a separate business segment and recorded an impairment to goodwill related to its hosiery in 2020. The firm acknowledges it has suffered market share losses to private-label brands, especially in socks, and its total yearly hosiery and underwear sales declined 21% between 2017 and 2021. We think there is a possibility that Gildan may end some of its hosiery programs to concentrate on its private-label business.

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Key Statistics GIL

Company Profile GIL

Business Description

Gildan is a vertically-integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. Its primary market is the sale of blank T-shirts and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels. Brands include Gildan, American Apparel, Comfort Colors, and Gold Toe. Gildan produces most of its clothing at factories in Latin America. The Montreal-based company generates most of its sales in the U.S. and was incorporated in 1984.

Contact
600 de Maisonneuve Boulevard West, 33rd Floor, Suite 330
Montreal, QC, H3A 3J2, Canada
T +1 514 243-7451
Industry Apparel Manufacturing
Most Recent Earnings Jun 30, 2022
Fiscal Year End Jan 1, 2023
Stock Type
Employees 51,000

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