Gildan Activewear reports Q4 profit up from year ago, raises quarterly dividend (2024)

MONTREAL — Gildan Activewear Inc. raised its quarterly dividend 10 per cent as it reported a fourth-quarter profit of US$153.3 million, up from US$83.9 million a year earlier.

The clothing maker said Wednesday it will pay a quarterly dividend of 20.5 cents US per share, up from 18.6 cents US per share.

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Gildan, which keeps its books in U.S. dollars, says its fourth-quarter profit amounted to 89 cents US per diluted share for the quarter ended Dec. 31, up from 47 cents US per diluted share a year earlier.

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Net sales totalled US$782.7 million, up from US$720.0 million.

On an adjusted basis, Gildan says it earned 75 cents US per diluted share, up from an adjusted profit of 65 cents US per diluted share a year earlier.

The results came as group of shareholders seek to reinstate founder Glenn Chamandy as Gildan’s chief executive. Chamandy was terminated on Dec. 10 after four decades at the company and replaced by Vince Tyra.

U.S. investor Browning West, which is looking to replace a majority of the Gildan board of directors in a move to bring Chamandy back, has said it will offer a slate of candidates for election at the company’s annual meeting.

In its outlook for 2024, Gildan said it expects revenue growth for the full year to be flat to up low-single digits.

The company’s adjusted diluted earnings per share for 2024 are expected to be in a range of $2.92 to $3.07, up between 13.5 per cent and 19.5 per cent year over year.

In addition to Browning West, several Gildan shareholders, including the company’s largest, Jarislowsky Fraser, have sought to have Chamandy reinstated.

The Gildan board has said it replaced Chamandy because he had no credible long-term strategy for the company and had lost the board’s trust and confidence in his ability to grow an increasingly complex organization.

In response, Chamandy has said he presented a comprehensive long-range plan in October last year that showed meaningful organic growth prospects for Gildan over the next five years.

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