This week's biggest % winners & losers : Oct 14 - 18, 19 (wk 42)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: RETA (184.91 +93%), ASMB (15.05 +72.79%), ENDP (4.88 +31.58%), DERM (7.16 +25.83%), RVNC (15.17 +24.55%), AKRX (4.61 +17.9%), QTNT (8.47 +15.24%), AUPH (4.71 +14.74%)
• Materials: OSB (26.38 +14.85%)
• Consumer Discretionary: HMHC (5.85 +27.04%), TEN (13.01 +15.13%)
• Information Technology: TECD (124.03 +15.36%)
• Energy: MDR (2.35 +15.2%)

This week's top % losers

• Consumer Discretionary: GIL (26.28 -24.46%)
• Information Technology: COUP (127.89 -18.7%), APPN (41.48 -17.85%), ESTC (71.22 -16.45%), OKTA (98.56 -15.21%), PAGS (38.85 -14.95%), AYX (95.4 -14.49%), MDB (116.86 -14.27%)
• Energy: PUMP (7.91 -16.12%), QEP (2.71 -15.84%), PDCE (21.2 -15.79%), BCEI (18.76 -15.5%), SRCI (3.45 -14.81%), CRC (7.55 -14.69%), CDEV (3.19 -13.78%)

Gildan Activewear (GIL) reports downside prelim Q3 results and cuts FY19 guidance

• Earnings: Oct 31 b/o

** charts after guidance **

 

Gildan Activewear reports downside prelim Q3 results and cuts FY19 guidance

Co sees Q3 (Sep) EPS of ~$0.53, excluding items, vs. $0.57 S&P Capital IQ Consensus; sees Q3 (Sep) revs of ~$740 mln vs. $790.67 mln S&P Capital IQ Consensus. The previous guidance provided on August 1, 2019 called for adjusted diluted EPS growth to be flat in the third quarter, on projected sales growth in the mid-single-digit range over the third quarter last year. During the third quarter of 2019, co experienced significantly weaker than expected demand for imprintables in North America and ongoing softness in international imprintable markets. Specifically in the U.S. imprintables channel, where the co was expecting low-single-digit growth in distributor point-of-sales (POS), actual POS during the third quarter was down high-single-digits compared to last year. Further, in international imprintable markets where the Company was forecasting growth, continued softness in Europe and China resulted in lower international sales for the quarter compared to last year. While overall imprintable sales were weaker than expected, overall retail sales were essentially in line with co's expectations.

Company is revising its 2019 guidance to reflect the approximate $50 million sales shortfall in the third quarter and is assuming the current demand weakness for imprintables both in North America and internationally will persist through the fourth quarter.... sees FY19 (Dec) EPS of $1.65-1.70, prior $1.95-2.00, excluding non-recurring items, vs. $1.97 S&P Capital IQ Consensus; Adjusted EBITDA of $545 to $555 million, compared to previous guidance of in excess of $615 million; and free cash flow for 2019 of $200 to $250 million compared to previous guidance of $300 to $350 million

-=Gildan Activewear (GIL) reported earnings on Thur 2 Aug 2018 (b/o)

Gildan Activewear beats by $0.03, beats on revs; guides FY18 EPS in-line 

• Reports Q2 (Jun) earnings of $0.52 per share, excluding non-recurring items, $0.03 better thanthe Capital IQ Consensus of $0.49; revenues rose 6.8% year/year to $764.2 mln vs the $728.72 mln Capital IQ Consensus.
  • The sales increase in activewear was driven by strong shipments of imprintable products, as well as increased shipments to global lifestyle brand customers and retailers.
  • Gross margin in the second quarter of 2018 totaled 28.3%, reflecting a 150 basis point decrease over the same period last year. The decline was mainly due to higher raw material and other input costs and additional manufacturing expenses resulting from disruptions within our supply chain in Central America.
• Co issues in-line guidance for FY18, sees EPS of $1.85-1.90, excluding non-recurring items, vs. $1.86 Capital IQ Consensus Estimate.
  • Net sales growth is now projected to be in the mid-single-digit range, the upper end of the Company's previous range of low to mid-single digit growth. The Company expects adjusted EBITDA to be in the range of $605 to $620 million compared to $595 to $620 million previously, and free cash flow for 2018 is now expected to be in excess of $425 million for the year, higher than its previous estimate of in excess of $400 million.
  • "For the balance of 2018, the Company is projecting adjusted diluted EPS growth in the high-single-digit to low-double-digit range in the third quarter, and strong double-digit adjusted diluted EPS growth in the fourth quarter."

-=Gildan Activewear (GIL) reported earnings on Thur 22 Feb 2018 (b/o)

Gildan Activewear reports EPS in-line, beats on revs; guides FY18 EPS below consensus; co also is increasing quarterly dividend to $0.112/share from $0.0935/share 

• Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.31; revenues rose 11.2% year/year to $653.7 mln vs the $636.62 mln Capital IQ Consensus.
  • Sales growth driven primarily by a strong finish in Printwear, where sales grew 27.6% in the quarter or 22.5% on an organic basis
  • Consolidated gross margin in the fourth quarter increased 40 basis points to 27.1% compared to the prior year quarter. The increase was mainly due to higher net selling prices and favourable product mix in Printwear, partly offset by unfavourable product mix in Branded Apparel, higher raw material costs, and the impact of additional manufacturing expenses of approximately $6 million, or 95 basis points of gross margin, resulting from temporary production interruptions related to the recent election in Honduras.
• Co issues downside guidance for FY18, sees EPS of $1.80-1.90, excluding non-recurring items, vs. $1.90 Capital IQ Consensus Estimate.
  • Adjusted EBITDA for 2018 is expected to be in the range of $595 to $620 million. The Company is also projecting to generate free cash flow for 2018 of approximately $400 million.
• Co states, "Net sales growth in 2018 assumes unit volume growth of imprintables in North America and double-digit volume growth in international markets, favourable product mix due to projected continued strong growth of fashion and performance basics from our American Apparel, Anvil, and Comfort Colors brands, as well as from new product introductions, including The Gildan Hammer line within the Gildan fashion basics collection. American Apparel which was acquired February 8, 2017 is expected to contribute net sales of approximately $100 million in 2018, up from approximately $50 million in 2017. Projected sales growth in 2018 also reflects higher net selling prices, effected to offset in part rising raw material and input costs, as well as favourable foreign exchange impacts...Adjusted operating margin for 2018 is expected to be slightly higher than 2017. The Company is projecting to incur restructuring and acquisition-related costs of approximately $15 to $20 million in 2018." 

-=Gildan Activewear (GIL) reported earnings on Thur 2 Nov 2017 (b/o)

Gildan Activewear beats by $0.02, misses on revs; guides FY17 EPS above consensus 

• Reports Q3 (Sep) earnings of $0.53 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.51; revenues rose 0.2% year/year to $716.4 mln vs the $748.86 mln Capital IQ Consensus.
• Co issues upside guidance for FY17, sees EPS of $1.70-1.72 vs. $1.69 Capital IQ Consensus Estimate.
  • Previous guidance was for diluted EPS to be at the high end of $1.60-$1.70
• Consolidated gross margin in the third quarter came in at a strong 31.0%, reflecting a 60 basis point increase over the same period last year.
• Outlook: "After reflecting third quarter earnings per share results and more tempered sales expectations for Branded Apparel in the current retail environment, the Company updated its guidance for the full year. Consolidated net sales growth for the full year is now projected to be in the mid to high single digit range compared to the Company's previous estimate of high single digit net sales growth. The Company continues to expect strong full year Printwear net sales growth in the high single digit range, while it is now projecting Branded Apparel net sales growth in the low single digit range versus its previous projection of high single digit growth, given current retail market conditions."
• The Company also updated its expectation for adjusted EBITDA for 2017 to be in the range of $580 -$590 million, up from its prior estimate of adjusted EBITDA at the high end of the $555-$585 million guidance range. Full year capital expenditures continue to be projected to be ~$100 million.
• Finally, as a result of stronger than previously anticipated profitability and working capital improvements, the Company is now projecting free cash flow in excess of $450 million for the year compared to its previous estimate of in excess of $425 million. 

=Gildan Activewear (GIL) reported earnings on Thur 23 Feb 17 (b/o)

Gildan Activewear beats by $0.03, misses on revs; guides FY17 EPS below consensus; raises dividend 20%; approves buyback up 5% of shares; Board approves new shareholder rights plan:

• Reports Q4 (Dec) earnings of $0.32 per share, $0.03 better than the Capital IQ Consensus of $0.29; revenues rose 8.1% year/year to $587.9 mln vs the $604.14 mln Capital IQ Consensus, reflected sales increases of 14.4% in the Printwear segment and 1.2% in Branded Apparel. Growth was primarily driven by the impact of the Alstyle and Peds acquisitions and organic unit sales volume growth in Printwear, partly offset by the impact of significant retailer inventory destocking and the anticipated impact of the exit of private label programs in Branded Apparel, as well as lower net selling prices in Printwear. The acquisitions of Alstyle and Peds contributed ~$50 million in sales in the fourth quarter of 2016.
• Consolidated gross margin in the fourth quarter of 2016 was 26.7%, in line with the same period last year, as the benefits from lower raw material and other input costs were largely offset by lower net selling prices.
• Co issues downside guidance for FY17, sees EPS of $1.60-1.70 vs. $1.72 Capital IQ Consensus on projected high single digit consolidated net sales growth. Adjusted EBITDA for 2017 is expected to be in the range of $555 to $585 million. The Company is also projecting another record year of strong free cash flow generation in excess of $400 million. Net sales in 2017 in the Printwear and Branded Apparel segments are each expected to increase in the high single digit range.
• The Board of Directors has approved a 20% increase in the amount of the current quarterly dividend and has declared a cash dividend of $0.0935 per share, payable on April 3, 2017 to shareholders of record on March 9, 2017.
• Co announced that it had received approval from the Toronto Stock Exchange for a new normal course issuer bid commencing on February 27, 2017 to purchase for cancellation up to 11,512,267 common shares, representing ~5% of the Company's issued and outstanding common shares. As of February 17, 2017, the Company had 230,245,359 common shares issued and outstanding.
• Co also announced that its Board of Directors has approved a new shareholder rights plan which will become effective upon confirmation and approval by the shareholders of the Company at the annual meeting of shareholders to be held on May 4, 2017. The Rights Plan will ensure that the Company and its shareholders continue to receive the benefits associated with the Company's current shareholder rights plan, which is due to expire at the close of business on the date of the Company's upcoming annual meeting of shareholders. 

Gildan (GIL) completes acquisition of American Apparel

Canadian apparel maker Gildan Activewear Inc. announced on Wednesday the closing of its purchase of the American Apparel brand and certain assets.

• Canadian apparel manufacturer Gildan Activewear Inc purchased American Apparel’s intellectual property and manufacturing equipment several days ago for $88 million, and has chosen to discontinue American Apparel's American brick-and-mortar presence.

The deal closes a bidding war that emerged for the Los Angeles T-shirt brand that filled for Chapter 11 in October 2015, and again in November 2016 with some $177 million in debt.

The bankruptcy auction attracted interest from the likes of e-commerce giant Amazon.com Inc, competitor Forever 21 Inc and brand licensor Authentic Brands Group LLC, as well as California-based apparel maker Next Level Apparel. However, it was Gildan who emerged as the winner in the court supervised auction, on January 10.

Gildan won after raising its original $66 million bid to a total purchase price of $103 million.

Gildan, a manufacturer and marketer of branded basic family apparel, has a portfolio of company-owned brands, including its own namesake line, Gold Toe, Anvil, Comfort Colors, Alstyle, Secret, Silks, and more, now including American Apparel.

Future plans for the American Apparel brand under Gildan have not been unveiled, but it is expected that we will hear more as they report their up-coming quarterly earnings on February 23.

=Gildan Activewear (GIL) reported earnings on Wed 2 Nov 2016 (a/h)

Gildan Activewear misses by $0.01, misses on revs; guides FY16 EPS below consensus, revs in-line:

• Reports Q3 (Sep) earnings of $0.50 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.51; revenues rose 6.0% year/year to $715 mln vs the $728.12 mln Capital IQ Consensus.
• Co issues guidance for FY16, sees EPS of $1.48-1.50 (Prior $1.50-1.55), excluding non-recurring items, vs. $1.53 Capital IQ Consensus Estimate; sees FY16 revs of approx $2.6 bln (Prior $2.65 bln) vs. $2.65 bln Capital IQ Consensus Estimate.
• Adjusted EBITDA for 2016 is now estimated to be approximately $530-$535 million compared to the Company's previous projection of approximately $545-$555 million.
• The Company continues to project Printwear sales of approximately $1.65 billion while Branded Apparel sales are now projected to be approximately $960 million compared to the Company's prior guidance of approximately $1.0 billion.
  • The updated 2016 full year guidance primarily reflects the lower than anticipated results in the third quarter and tempered Branded Apparel sales expectations in the fourth quarter, in light of current retail market conditions. In addition, projected Branded Apparel sales for the year also reflect the later than previously projected timing of shipments of a new licensed program to a large national chain retailer, previously planned to be shipped in the fourth quarter of this year and now requested for shipment in the first quarter of 2017.
• The Company expects capital expenditures for 2016 towards the lower end of its previous projected range of $150-$175 million
• . Given the Company's strong cash generation to date and its projection for the fourth quarter, the Company expects to generate record free cash flow for the full year in the range of $325-$350 million.

GIL — is it a buy?

• Q:  1/26/16

• Several months later:

Gildan Activewear (GIL) — is it a buy?

** charts after earnings **

** chart 10 days later **

+10%

Gildan Activewear (GIL) reported earnings Thur 12 Nov 2015 (before open)

** charts before earnings **

** charts after earnings **

Gildan Activewear beats by $0.01, misses on revs; guides Q4 below consensus (lowers FY15 guidance) :

• Reports Q4 (Sep) earnings of $0.52 per share, excluding non-recurring items,$0.01 better than the Capital IQ Consensus of $0.51; revenues rose 1.3% year/year to $674.5 mln vs the $704.56 mln Capital IQ Consensus.
  • Consolidated net sales in the quarter were below the Company's guidance for net sales of close to U.S. $700 million, mainly as a result of lower than anticipated Branded Apparel sales which were impacted by continuing lower than anticipated inventory replenishment by a U.S. major retail customer and weaker than anticipated demand during the back-to-school period.
• Co issues downside guidance for Q1, sees EPS of $0.28-0.30 vs. $0.32 Capital IQ Consensus Estimate; sees Q1 revs of in excess of $500 mln vs. $519.42 mln Capital IQ Consensus Estimate.