Expert Call Recap: Signs Point to Normal 2Q Fundamentals

研报英文原文证据摘录

Expert Call Recap: Signs Point to Normal 2Q Fundamentals

The expert emphasized the printwear market is currently in the middle of a major

technology-driven transition, as production shifts from traditional screen printing

toward digital / print-on-demand models. In his view, this shift is changing order

patterns meaningfully, toward many more small orders, fewer large runs, lower unit

volumes, but often higher revenue per unit. This makes conventional industry growth

metrics harder to interpret. He further flagged the industry is likely in a 2-3 year

transition period, with forecasting models disrupted by both the technology shift and

lingering post-COVID volatility. Even so, he was clear Gildan remains the dominant

player in the category and despite elevated inventory in the marketplace, he does not

currently see the pricing behavior or promotional environment which would normally

indicate a broad channel clean-up is underway.

...plus, there are four structural reasons explaining current inventory levels:

First, post-COVID supply chain disruption likely led distributors to rebuild inventory and

carry more stock after a period in which fulfillment had become extremely fragmented

across multiple DCs. Second, tariff uncertainty likely fueled some pull-forward of

purchases, both to secure supply and avoid price increases. The expert also noted tariff-

driven supply chain disruption has contributed to reshoring decorated apparel work

back into the U.S. Third, the industry’s shift toward digital / on-demand printing

production and faster-turn retail replenishment is likely increasing the need for broader

regional inventory availability, particularly if customers require 2-3 week turns rather

than 8-12 week offshore lead times. Fourth, the expert noted it would make sense