News Flash

Canada's Gildan projects operating margin below 18-20% in FY23

09 Aug '23

1 min read

Pic: Gildan Activewear

Insights

Gildan Activewear has projected revenues to be flat or down low single digits in FY23, contrasting previous expectations of growth.
The adjusted operating margin is expected to fall slightly below the 18 per cent to 20 per cent target range.
Adjusted diluted EPS is projected at $2.55 to $2.65, with capex at the lower end of 6 per cent to 8 per cent range.

Gildan Activewear, a Canada-based leading manufacturer of branded clothing and accessories, has revised its financial outlook for fiscal 2023 (FY23). The adjusted operating margin is now anticipated to be slightly below the low end of the company's current 18 per cent to 20 per cent annual target range.

Revenues for FY23 are now anticipated to be flat or down by low single digits. This is a shift from the company's previous expectation of a low single-digit year-over-year (YoY) increase, Gildan Activewear said in a media release.

The updated guidance for adjusted diluted EPS is now within the range of $2.55 to $2.65, factoring in the impact of assumed share repurchases of 5 per cent of the outstanding public float this year. This new projection contrasts with previous guidance, which called for the EPS to be in line with the record FY22 adjusted diluted EPS of $3.11.

Gildan plans to keep its capital expenditure (Capex) at the lower end of its 6 per cent to 8 per cent target range. Lastly, the company projects strong full-year free cash flow generation above $425 million.

Fibre2Fashion News Desk (DP)

More Gildan Activewear Inc News... More Apparel/Garments News - Canada...