Market Movers On The Rise
Gildan Activewear Inc. soared with the premarket release of third-quarter results that blew past expectations on the Street.
Sales of US$802-million were higher than the consensus forecast of US$720-million, leading to an adjusted earnings per share beat (80 US cents versus 52 US cents).
“For the second quarter in a row, adjusted operating margin was well above the company’s target,” said Desjardins Securities analyst Chris Li. “This was 21.5 per cent, a sequential improvement from 20 per cent and above management’s target of 18 per cent. Outperformance came from stronger-than-expected activewear sales and gross margins. In terms of outlook, management believes the recovery from the pandemic continues to progress well in North America, driving positive POS trends compared with pre-COVID-19 levels in 2019. While supply chain tightness in certain areas and rising inflationary pressures are creating headwinds across the industry, management believes GIL’s relative positioning is strong given its vertically integrated manufacturing platform. Combined with recent pricing actions implemented in 4Q, this gives management confidence it is well-positioned to manage through current inflationary pressures, achieve its margin target and gain market share.”