1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
No-moat Gildan reported revenue and margin upside to our estimates in 2021’s second quarter as an improved economy, pent-up demand, and inventory building in North America resulted in stronger sales of imprintables and underwear. We expect to lift our $21.50/CAD 26.50 fair value estimate by a mid-single-digit percentage but still view the shares as expensive.
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 to wholesalers 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.
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