Gildan Activewear (GIL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 sales of $822 million, up 5% year-over-year, and full-year revenues of $3.27 billion, up 2.3%, driven by innovation, market share gains, and strong Activewear and international performance.

• Adjusted operating margin reached 21.3%, up 4 percentage points year-over-year, with adjusted diluted EPS rising 17% to $3.00.

• Announced executive leadership changes, including CEO termination and reinstatement, new COO and CFO appointments, and succession planning, resulting in $82.7 million in related non-recurring costs.

• Dividend increased by 10% for 2025, with annual guidance initiated.

Financial highlights

• Q4 adjusted EPS reached $0.83, up 11% year-over-year; full-year adjusted diluted EPS grew 17% to $3.00.

• Gross margin for Q4 was 30.8%, up 60 basis points; full-year gross margin was 30.7%.

• Adjusted operating income for the year was $696 million, up 26% year-over-year; adjusted EBITDA was $834 million, up 24%.

• Free cash flow for the year was $389 million; $889 million returned to shareholders via dividends and share repurchases.

• Ended the year with net debt of $1.57 billion and a leverage ratio of 1.9x net debt to adjusted EBITDA.

Outlook and guidance

• 2025 revenue expected to grow mid-single digits; adjusted operating margin to rise by ~50 basis points; adjusted diluted EPS guidance of $3.38–$3.58, up 13–19% year-over-year.

• Free cash flow projected above $450 million; CapEx to be about 5% of sales.

• Three-year objectives (2025–2027): net sales CAGR in mid-single digits, adjusted EPS CAGR in mid-teens.