First Read: Gildan Activewear Inc

研报英文原文证据摘录

First Read: Gildan Activewear Inc

of Q2E 1.14 1.11

the Street's forecasts. Plus, the company said its FY26 revenue guidance is "expected to Q3E 1.36 1.34

be at the low end of the previously communicated range of $6.0B to $6.2B." This could Q4E 1.47 1.40

weigh on sentiment in the near-term, especially given recent market debate around 12/26E 4.40 4.29

elevated channel inventory levels. 12/27E 5.90 5.34

12/28E 6.45 6.28

…and we reiterate our Buy rating:

Jay Sole

GIL said some of the reasons for these sales trends are "broader market softness toward Analyst

the end of the quarter" and "lower seasonal inventory builds at certain large retail jay.sole@ubs.com

customers reflecting their tempered optimism in the current environment" in its retail +1-212-713 3559

business. In other words, the Hanes side of the business likely softened toward the end Mauricio Serna, CFA

of June. This is important because the Hanes business was not what the market was Analyst

debating. The market was worried about sales in GIL’s wholesale business to its key mauricio.serna@ubs.com

distributor partners and the press release makes no mention of any issue there. +1-212-713 9028

Furthermore, it is becoming clear from other Softline companies which have recently Natalie Koltermann

reported that they too experienced softness starting toward the end of June, so what Associate Analyst

GIL is saying should not be a surprise. The bottom line is our Buy thesis is intact and natalie.koltermann@ubs.com

Street EPS estimates are likely moving higher. We believe the market will see something +1-212-713 4229

similar.

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 3,196 3,271 3,619 6,200 6,579 6,862 7,136 7,423

EBIT (UBS) 552 695 779 1,239 1,517 1,579 1,643 1,715