Gildan Activewear sees FY23 adjusted EPS $2.55-$2.65, consensus $2.69

Sees FY23 revenue flat to down low single digits, compared to our previous expectations of a low single digit year-over-year increase. Sees FY23 adjusted operating margin slightly below the low end of our current 18%-20% annual target range. Maintains Capex guidance at the lower end of our 6%-8% target range. Sees FY23 strong free cash flow generation above $425M. The company said, “We believe that our vertically integrated model, our competitive cost structure, leadership in pricing, product availability, and strength in sustainability are enabling us to grow our market share in key product categories and outperform our peers. Further, with strong comparative periods now behind us, we continue to expect our revenues to grow in the second half of the year supported by the planned roll-out of incremental retail programs. That being said, and despite continued market share gains, we are seeing current market conditions unfavourably impact activewear product mix, both in North American and International markets, as customers focus on lower-priced products. Combined with near-term uncertainty related to the macro-environment, we believe it is prudent to temper our previous FY 2023 expectations for revenue growth and operating margins.”