- "Back to Basics" drives strong Q4 performance, says Gildan Activewear (GIL +12.1%) in its fourth-quarter earnings report after beating estimates on both lines.
- Revenue of $690.16M (+4.8% Y/Y) beats consensus by $74.47M. By segment, activewear, $537.9M (+up 11.3% Y/Y); and hosiery and underwear, $152.3M (-13% Y/Y).
- Adj. gross margin has shown a sequential improvement of 330bps to 25.8%.
- Operating income was $78.8M, compared to $24.3M a year ago. Adj. operating margin improved 310 bps to 15.3%.
- Increase in activewear sales reflected favourable imprintables product-mix, higher volume growth in North America and higher unit sales through retail channels, partly offset by lower international shipments, report.
- Non-GAAP EPS of $0.45 beats by $0.23
- GAAP EPS of $0.34 beats by $0.17.
- The company generated a record free cash flow of $278M, up from $241 in 4Q19.
- Capex of $13.4M, down from $21.3M last year; Net debt leverage ratio was 3.5 times adjusted EBITDA ($145.3M).
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