Leading clothing and accessories manufacturer, Gildan Activewear, has announced its financial outlook for the fiscal year 2023 (FY23), forecasting low single-digit revenue growth and an adjusted operating margin within its annual target range of 18 per cent to 20 per cent.
The company’s optimistic outlook is supported by its Gildan Sustainable Growth (GSG) strategy, which aims to implement sustainable practices throughout its operations, reducing greenhouse gas emissions and water usage while increasing the use of sustainable materials in its products. Gildan’s commitment to sustainability has positioned it for success in the coming year, despite the challenges faced by the apparel industry due to the ongoing COVID-19 pandemic.
Gildan’s President and CEO, Glenn J Chamandy, stated that the company remains comfortable with its full-year outlook despite the uncertain economic environment. The company’s strong competitive position, reinforced by the GSG strategy, and point of sale (POS) trends across the business coming in line with their expectations during the first quarter, support their outlook.
The apparel industry has been affected by supply chain disruptions and changing consumer behavior due to the pandemic. However, Gildan Activewear’s focus on sustainability and strong competitive position have positioned the company for success in the coming year.
Gildan anticipates capex to be at the lower end of its previously stated range of 6 per cent to 8 per cent and strong free cash flow generation as it progresses through the year. The company expects its adjusted diluted earnings per share to be in line with FY22.
Gildan Activewear is a leading branded clothing and accessories manufacturer, offering a wide range of products across North America, Europe, and Asia-Pacific. The company’s product offerings include t-shirts, activewear, socks, and underwear, among others. Gildan’s products are known for their quality, affordability, and sustainability, making them a popular choice for consumers worldwide.
The company’s GSG strategy is a key focus for the company as it looks to reduce its environmental impact while meeting the growing demand for sustainable products. The strategy includes the use of sustainable materials, reducing waste, and promoting sustainable practices throughout its supply chain.
Gildan’s commitment to sustainability and strong competitive position have been key factors in its success in recent years. Despite the challenges posed by the pandemic, the company’s focus on sustainability and strong financial position have positioned it for continued success in the coming year.
In summary, Gildan Activewear has confirmed its FY23 outlook of low single-digit revenue growth, an adjusted operating margin within its target range, and capex at the lower end of its previously stated range. The company anticipates strong free cash flow generation and adjusted diluted earnings per share in line with FY22. Gildan’s commitment to sustainability through its GSG strategy and strong competitive position will support its success in the coming year.