- Gildan's revenue increased by +15% QoQ to $690 million in 4Q 2020 which beat market expectations, but it benefited from a lower base in 4Q 2019 resulting from distributor destocking.
- The company's adjusted gross profit and operating margin expanded by +3.3 and +3.1 percentage points QoQ in 4Q 2020, but a downside risk is the normalization of SG&A expenses post-COVID.
- Sell-side forecasts for FY 2021 seem to be a tad too bullish, considering that early 2021 trends have been disappointing.
- The market values Gildan at 16.1 times consensus forward FY 2022 P/E, and the stock offers a FY 2022 dividend yield of 1.5%.
For further details see:
Gildan Activewear: Positive Surprise With Better-Than-Expected Q4 Numbers