Gildan narrows FY25 adjusted EPS view to $3.45-$3.51 from $3.40-$3.56

Consensus is for FY25 EPS $3.47. The company said, “Delivering another strong quarter despite the fluid macroeconomic environment and a generally softer demand environment is a testament of our continued commitment to execute our Gildan Sustainable Growth strategy and underscores our confidence in our ability to achieve our objectives, as we continue to drive growth in key product categories and channels. We believe that our vertically integrated business model, paired with our strong industry positioning should support continued strong financial performance.” Consequently, for 2025,the company updated the FY25 guidance: Revenue growth for the full year to be up mid-single digits, in line with previous guidance; adjusted operating margin to be up approximately 70 basis points compared to previous guidance of ‘up approximately 50 basis points’; Capex to come in at approximately 4% of sales, compared to previous guidance of 5% of sales; Free cash flow to be approximately $400M, compared to previous guidance of ‘above $450M’. The assumptions underpinning FY25 guidance include: “We continue to reflect the impact of tariffs currently in place in conjunction with mitigation initiatives including pricing and our ability to leverage our flexible business model as a low-cost vertically integrated manufacturer. The higher tariffs are also embedded in our inventory costs. Our outlook continues to reflect growth in key product categories driven by recently introduced innovation, the favourable impact from new program launches and market share gains, and the various incentives from jurisdictions where we operate. No share repurchases for the remainder of 2025, as indicated at the time of announcement of the proposed HanesBrands acquisition. We have taken into account acquisition-related transaction costs incurred thus far. We also expect our adjusted effective income tax rate for 2025 to remain at a similar level to 2024. We have assumed no meaningful deterioration from current market conditions including the pricing and inflationary environment, and the absence of a significant shift in labour conditions or the competitive environment.