2024-03-26 07:33:04 ET
Summary
- Gildan Activewear is the leading US t-shirt manufacturer and an integrated manufacturer (raw cotton to end-product) of t-shirts, hoodies, underwear, and socks.
- The company dominates its market via cost leadership, undercutting competitors by 30% while posting 15% operating margins.
- Since the mid-2010s, GIL has been growing slowly and returning capital to shareholders.
- Recently, the Board, the company's ex-CEO and founder, and its shareholders have been fighting over succession and a potential takeover.
- I believe speculating about a takeover price is high, and that the current stock price already discounts most positive developments in Gildan's operating future.
Gildan Activewear ( GIL ) is the leading US t-shirt manufacturer and an integrated manufacturer (raw cotton to end-product) of t-shirts, hoodies, underwear, and socks.
The company has carved itself an enviable position as a cost leader in the top market, selling to known brands and the printables market. A true quality company in terms of manufacturing efficiency and good capital allocation, generating outstanding capital returns for decades....
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Gildan Activewear Will Likely Offer Better Prices In The Future