Like most apparel companies reporting weak results due to COVID-19 shutdowns, Gildan Activewear (GIL) first-quarter revenues dropped by 26.4% year over year, missing analyst estimates by $22 million, and it reported non-GAAP EPS of $0.06, short by $0.05 from the consensus view.
Shares have rebounded slightly but are still way below where they were at the beginning of the year. From a valuation perspective, trailing and forward EBITDA multiples are diverging, with forward EBITDA multiples at 14.9x, trading above their 5-year average of 12x. GIL’s trailing EBITDA multiple stands at 8.3x, below its