Canada-based leading apparel manufacturer Gildan Activewear has released its financial outlook for fiscal 2024 (FY24), forecasting a stable revenue growth ranging from flat to low-single digits. The company also expects an adjusted operating margin slightly above the higher end of its annual target range of 18 per cent to 20 per cent. This represents a significant improvement over the fiscal 2023 adjusted operating margin of 17.3 per cent, although the fiscal 2023 operating margin itself was slightly higher at 20.1 per cent.

Capital expenditures for FY24 are projected to be around 5 per cent of sales, aligning with the company's strategic investments aimed at long-term growth and vertical integration. Moreover, Gildan has set an adjusted diluted earnings per share (EPS) target for FY24 in the range of $2.92 to $3.07, marking an increase of 13.5 per cent to 19.5 per cent compared to the fiscal 2023 adjusted diluted EPS of $2.57. This growth is noteworthy, considering the fiscal 2023 GAAP diluted EPS was $3.03, the company said in a press release.

Gildan also shared preliminary figures for the first quarter (Q1) of FY24, with net sales expected to be approximately $695 million, slightly down by about 1 per cent year-over-year.

Looking further ahead, Gildan has outlined its medium-term targets from 2025 to 2028, assuming no major shifts in the macroeconomic landscape. The company aims for net sales to grow at a compound annual growth rate in the mid-single digits. The target for annual adjusted operating margin is set between 18 per cent and 21 per cent, and capital expenditures are expected to maintain an average of about 5 per cent of sales annually. Additionally, Gildan anticipates adjusted diluted EPS to grow annually in the high-single to low double-digit range.

Fibre2Fashion News Desk (DP)

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