Gildan CEO Vince Tyra provides key focus strategic priorities
16 April 2024: Gildan Activewear Inc. has announced that its President and CEO, Vince Tyra has unveiled his key focus strategic priorities. Concurrently, the Company also reconfirmed its 2024 full year guidance and announced preliminary Q1 revenue.
Reflecting on his first 90 days, Vince Tyra said, “I’m excited to be leading Gildan at this pivotal time. Having completed 90 days at the helm of Gildan, I wanted to share with you my key focus strategic priorities and articulate how we can leverage our strengths and accelerate value creation for all stakeholders. Importantly, these priorities reflect feedback received from shareholders and their desire for us to continue sustainably growing Gildan. As we continue to execute on the key components of the Gildan Sustainable Growth strategy, my first few months as CEO have confirmed my belief that Gildan’s core fundamentals are strong and that we are in a great position to unlock further potential and launch the next phase of our growth.”
With its three key pillars, Growth, Innovation, and ESG, the Gildan Sustainable Growth (GSG) strategy has set the foundation for the Company’s future. Capitalizing on this strong foundation and the continued execution of the GSG plan which remains core to Gildan’s business, today Vince Tyra outlined his key focus strategic priorities to unlock further growth potential while amplifying the Company’s commercial capabilities. These five key priorities are:
– Successfully execute supply chain initiatives to maintain availability, cost leadership and industry leading margins
– Leverage Gildan’s unique brands and develop distinct commercial capabilities to accelerate growth and strengthen the Company’s market position
– Deepen Gildan’s relationships with existing and prospective retail partners, strengthening the Company’s position as the supplier of choice
– Complement Gildan’s strong North American market position with renewed focus on select international markets to drive growth and
– Empower and build world-class talent and leadership to ensure long term resilience of Gildan’s business.
2024 Outlook and preliminary Q1 2024 revenue
– Revenue growth for the full year to be flat to up low-single digits
– Adjusted operating margin slightly above the high end of the 18% to 20% annual target range. This compares to fiscal 2023 adjusted operating margin of 17.3%; fiscal 2023 operating margin was 20.1%
– Capex to come in at approximately 5% of sales
Adjusted diluted EPS(2) in the range of $2.92 to $3.07, up significantly between 13.5% and 19.5% year over year. This compares to 2023 adjusted diluted EPS of $2.57; fiscal 2023 GAAP diluted EPS was $3.03
– Free cash flow above 2023 levels driven by increased profitability, lower working capital investments and lower capital expenditures than in 2023
In addition, Gildan announced that its preliminary Q1 2024 net sales are expected to come in at approximately $695 million or down about 1% year over year, as previewed in there Q4 2023 press release.
www.gildancorp.com
