Gildan Activewear

Sector: Apparel and footwear Countries of operation: Sells to China, Canada, the US and over 47 other countries Key product categories: Everyday basic apparel, including activewear, hosiery and underwear Annual Metrics [caption id="attachment_147402" align="aligncenter" width="700"] Fiscal year ends on December 31
*Trailing 12 months ended on April 3, 2022[/caption]   Summary Founded in 1984 and headquartered in Montreal, Canada, Gildan Activewear is a vertically integrated manufacturer of apparel, including activewear, hosiery and underwear. These products are sold to wholesale distributors, embellishers and screenprinters in Asia Pacific, Europe, Latin America and North America. They are also sold to retailers in North America, including craft stores, department stores, mass merchants, national chains and specialty retailers, alongside online retailers that sell directly to consumers through physical stores or e-commerce platforms. The products are manufactured and sold under private-label brands, including Alstyle, American Apparel, Anvil by Gildan, Comfort Colors, Gildan, Gildan Hammer, GoldToe, Kushyfoot, MediPeds, Peds, Prim + Preux, Secret, Secret Silky, Silks and Therapy Plus. Company Analysis Coresight Research insight: Gildan Activewear is off to a strong start in 2022, as illustrated by the company’s first-quarter fiscal 2022 (ended April 3, 2022) results. The company unveiled its “Gildan Sustainable Growth” Strategy in February 2022, which is focused on driving growth and margin performance. We believe the company’s investment into large-scale vertically integrated manufacturing platforms, a more efficient product portfolio and go-to-market approach will provide the company with strong capability to service its customers, in an environment where many apparel companies are facing supply challenges. Furthermore, the company is able to produce apparel products at low cost, which makes the company in a good position to offset inflationary pressures and deliver margin performance.

Tailwinds	Headwinds
The consumer pivot toward casual and comfortable apparel	A challenging overall environment as the pandemic continues to disrupt operations and manufacturing velocity Pressure from competitors such as Adidas, NIKE and Skechers

  Strategy On February 23, 2022, Gildan Activewear unveiled its “Gildan Sustainable Growth” strategy and reiterated its “Back to Basics” strategy as the core of the business. The “Back to Basics” strategy focuses on: 1. Simplify the company’s product portfolio and rationalize less productive styles and SKUs

• Continue to rationalize SKUs (stock-keeping units).
• Continue to optimize its product mix, focusing on activewear and underwear.

2. Drive manufacturing cost advantage and flexibility

• Become a low-cost manufacturer, passing cost savings into higher-quality products, innovation and better pricing.
• Enhance and optimize its production capabilities by consolidating higher-cost textile, sock and sewing operations within its existing manufacturing base.

3. Optimize distribution network and infrastructure

• Communicate with distributors on product demand and build stock ahead of anticipated price increases.
• Leverage its imprintables distributor network as well as the distribution capabilities of the company’s retail and e-commerce partners.

The “Gildan Sustainable Growth” strategy focuses on building on the company’s Back to Basics principles and driving organic top line and bottom line growth through capacity expansion, innovation, and strong ESG integrated in all aspects of how the company does business. Revenue Breakdown (FY21) [caption id="attachment_153520" align="aligncenter" width="700"] Source: Company reports[/caption]   Company Developments

Date	Development
March 24, 2022	Gildan Activewear announces the launch of Gildan Respects™, a global positioning of its environmental, social and governance (ESG) program and creative campaign supporting the Company’s “Next Generation ESG” strategy.
February 23, 2022	Gildan Activewear unveils its “Gildan Sustainable Growth” strategy and reiterates its “Back to Basics” strategy as the core of the business.
January 17, 2022	Gildan Activewear unveils its new environmental, social and governance strategy, covering the following areas: climate, energy and water; circularity; human capital management; long-term value creation; and transparency and disclosure.
December 13, 2021	Gildan Activewear announces the acquisition of Frontier Yarns, a US-based producer of spun yarns for the knitting and weaving industries.
November 17, 2021	Gildan Activewear is included on the 2021 Dow Jones Sustainability Index for the ninth consecutive year.
June 17, 2021	Gildan Activewear launches new website for its Printwear brands.

  Management Team

• Glenn J. Chamandy—President and Chief Executive Officer
• Rhodri J. Harries—Executive Vice-President, Chief Financial and Administrative Officer
• Benito Masi—President, Manufacturing
• Chuck J. Ward—President, Sales, Marketing and Distribution

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Source: Company reports