Author Topic: GIL - Gildan Activewear Inc  (Read 14338 times)

gjangal

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Re: GIL - Gildan Activewear Inc
« Reply #30 on: March 06, 2018, 09:57:13 AM »
Thank you for your inputs Viking and Kc.

I suspect most of their cost savings initiative will end up being passed to large retailers in the privately label space. Reasonably big customers with the largest being 13-15%.

Their products i think are also fast moving with a lot of wear and tear like socks, underwear and activewear. The velocity of sales for their products should be higher. Itís just a guess. It should be reflected in inventory turnover but i havenít checked that

Their cash conversion cycle is a negative at 170 days, this is probably the fact that hey are dealing with large retailers


KCLarkin

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Re: GIL - Gildan Activewear Inc
« Reply #31 on: March 06, 2018, 10:08:02 AM »
Thank you for your inputs Viking and Kc.

I suspect most of their cost savings initiative will end up being passed to large retailers in the privately label space. Reasonably big customers with the largest being 13-15%.

Their products i think are also fast moving with a lot of wear and tear like socks, underwear and activewear. The velocity of sales for their products should be higher. Itís just a guess. It should be reflected in inventory turnover but i havenít checked that

Their cash conversion cycle is a negative at 170 days, this is probably the fact that hey are dealing with large retailers

It should be stressed that retail is perhaps 36% of sales. Most of their revenue is from "printwear". These are "blanks" sold through distributors to printers. If you go to a charity run, you will see many custom t-shirts. Most likely, these will be Gildan products.

longlake95

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Re: GIL - Gildan Activewear Inc
« Reply #32 on: June 15, 2018, 09:44:15 AM »
Comments by the CFO at recent Stifel conference. GIL seems positive on private label, with 2 private label programs launching this year.

https://sgbonline.com/vertical-integration-has-gildan-well-positioned-for-private-label-launch/


KCLarkin

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Re: GIL - Gildan Activewear Inc
« Reply #33 on: July 24, 2018, 01:14:10 PM »
Gildan down 6% on BofA downgrade. Concerns about political stability in Nicaragua (where 3 of Gildan's sewing factories are located):
https://www.benzinga.com/analyst-ratings/analyst-color/18/07/12064503/bofa-double-downgrades-gildan-on-nicaraguan-unrest


Viking

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Re: GIL - Gildan Activewear Inc
« Reply #34 on: July 24, 2018, 01:32:44 PM »
Thanks for posting. I was wondering why the shares were trading down so much today.

LanceSanity

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Re: GIL - Gildan Activewear Inc
« Reply #35 on: August 02, 2018, 01:10:28 PM »
Up over 20% today on earnings beat: https://seekingalpha.com/news/3377521-gildan-activewear-plus-14-percent-earnings-beat . Anyone else get lucky and bought during the price drop last week?

longlake95

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Re: GIL - Gildan Activewear Inc
« Reply #36 on: August 02, 2018, 04:47:02 PM »
I did add to GIL last week, on weakness, due to the Nicaragua situation. Just lucky they printed a solid quarter. I guess it was more of a relief rally after HBI getting crushed this week. I still worry about the socks and underwear segment of the business. I wonder how much the private label brands will pressure the branded undies of HBI, GIL and Fruit of the Loom?

longlake95

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Re: GIL - Gildan Activewear Inc
« Reply #37 on: October 23, 2019, 10:34:24 AM »
Add to GIL again today, that's after a trim in the spring. I think the market is spooked that GIL's customers are de-stocking. Maybe the market is right...who knows...but the market whacked GIL with a 1.8B lower valuation on a 60M earnings cut. Even with a generous capitalization factor, it seems overdone. I followed GIL for a long-time and watch them go through many "issues", cotton priced spikes, political unrest in Honduras, print wear earning surprises to the downside, BAT fears, private label threats. They seem to forge ahead taking the occasional bruising. Management doesn't manage Q to Q, they have guided several times for high single digit sales growth and low double digit EPS growth. Their low cost position seems intact and improving - with more capacity in Bangladesh coming online. Not sure how to think about the private label business yet as it's still fairly new - time will tell. But there something like 5B of private label business out there for them to take a share of.

With a 6% normalized FCF yield, good management and growth still available, i'm happy to continue to be an owner even if business conditions worsen from here for a few quarters.



glorysk87

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Re: GIL - Gildan Activewear Inc
« Reply #38 on: October 23, 2019, 10:54:26 AM »
Been watching, but haven't gotten involved. The magnitude of the revision to expectations is a little concerning. Only thing I can think of that would have impacted them to that degree so quickly is the loss of a large customer. And if that's the case, then it has larger (more negative) implications on the state of the business. I think waiting for clarity is likely the prudent move here.