Citi opens ’30 day negative catalyst watch’ on Gildan Activewear

Citi analyst Paul Lejuez opened a "30 day negative catalyst watch" on shares of Gildan Activewear ahead of the Q4 results on February 22. Management commentary is likely to indicate that the demand backdrop has become more challenging, which is likely to impact first half of 2023 guidance and cause EBIT margins to be closer to the lower end of the company’s 18%-20% target range, which may pressure shares near-term, the analyst tells investors in a research note. The firm believes Gildan’s larger customers are likely in a period of destocking.