Gildan goes beyond his estimates and maintains his forecasts in an uncertain commercial context

Gildan Activewear Inc. keeps his forecasts for the whole year unchanged at the end of the first quarter, saying to expect his low-cost clothing activity to resist a dreaded economic slowdown, fueled by a trade war with the United States.

The Montreal sportswear manufacturer expects its income to increase in a figure in 2025 compared to the previous year. The decision to maintain forecasts reflects an “understanding of global commercial and geopolitical environments,” said business management at a conference call with analysts on Tuesday.

The director general Glenn Chamandy said that Gildan was taking his competitive advantage from its vertical integration and its low -cost manufacturing. He added that the company is largely supplied in cotton and thread with the United States, which protects it to a certain extent reciprocal customs duties of 10 % on products from outside the country.

“I think we are well positioned to continue on our momentum and continue to take shares,” Chamandy told analysts.

Gildan won 59 cents per share in the first quarter, exceeding 57 cents expected by analysts, according to a Bloomberg investigation. The company declared a net turnover of $ 711.7 million for the first quarter.

It maintains its forecasts at a time when an uncertain economic environment prompted other North American companies, such as Lightspeed Commerce Inc. and General Motors Co. to remove or revise their profits forecasts.

Brian Morrison, analyst at TD Cowen, believes that Gildan is about to gain market share and increase its capacity in Central America, which should strengthen the confidence of investors concerning the maintenance of the company’s forecasts for the next two years.

“Although the industry seems to slow down slightly, the Gildan market share gains seem to be accelerating,” Morrison wrote to its customers on Wednesday. “We believe that customs tariffs have a greater impact on the cost structure of our competitors than on that of Gildan, which has the effect of increasing its advantage in terms of costs”.

These results occur almost a year after the reintegration of Chamandy at the head of the company, following a long battle against the board of directors. Upon his return, he developed a plan with the investment company Browning West LP, based in Los Angeles, to increase income, borrow money and accelerate share buybacks in order to increase the course of action.

The shares gained more than 50 % between May 2024, when Mr. Chamandy was officially appointed CEO, and the peak of 78.42 Canadian dollars reached in February. They went back in the wake of concerns relating to customs prices and the general decline in the market, and had closed $ 59.25 Canadian dollars in Toronto on Tuesday, April 30.