Despite an epic proxy fight that included the ouster and subsequent return of Co-Founder/CEO Glenn Chamandy dominating the first half of 2024, Counselor Top 40 supplier Gildan (asi/56842) increased sales and generated net income of $400.9 million in the year, though the profitability was lower than in 2023.

In full-year financial results reported Wednesday, Feb. 19, publicly traded Gildan noted that its activewear division (which includes, but isn’t limited to, business with the promo products and decorated apparel industry) increased sales by 6% in 2024 compared to 2023 to $2.831 billion – a performance that was pivotal in driving the overall full-year revenue rise for the Montreal-headquartered company.

Glenn Chamandy, Gildan (asi/56842)

A vertically integrated manufacturer of apparel basics, Gildan said that total global sales across all its business channels rose 2.3% year over year in 2024 to $3.195 billion. A 17% decline in the firm’s underwear/hosiery division, driven in part by the phasing out of Under Armour products, offset some of the activewear division’s sales rise, Gildan noted.

The proxy fight, which began in mid-December 2023 when a previous Gildan board of directors removed Chamandy as CEO, was a prime contributor to selling, general and administrative expenses rising by about $60 million in 2024 compared to 2023.

The rise in expenses, along with factors like having to shoulder a higher income tax rate, contributed to Gildan’s net income declining by about 25% year over year – from 2023’s $533.6 million to $400.9 million. In 2024, full-year basic earnings per share tallied $2.46, down from the prior year’s $3.03.

Gross profit – which is profit before interest, taxes, amortization and depreciation – for 2024 came in at $1.004 billion, up $124 million over 2023.

“This past year has been a testament to the collective strength and dedication of our global team, the loyalty of our customers, and the ongoing support and trust of our shareholders,” said Chamandy, who was reinstated as CEO in late May, along with a reconfigured board of directors loyal to him. “By reinforcing our core competencies as a low-cost, large-scale, vertically integrated sustainable manufacturer, we continued to enhance our competitive advantage. We are well positioned for continued growth in the years ahead.”

Chuck Ward and Luca Barile have earned executive-level promotions at Counselor Top 40 supplier Gildan (asi/56842).

A Record Q4 & 2025 Outlook

To that latter point: Gildan forecasts that revenue in 2025 will grow in the mid-single percentage range compared to 2024. For the 2025 through 2027 period, Gildan is also aiming for net sales growth at a compound annual growth rate in the same mid-single digit range.

The apparel maker entered 2025 on something of a high note, having increased Q4 sales by 5% year over year to a fourth-quarter company record of nearly $822 million. For the quarter, activewear sales jumped 11% to $714 million, driven by higher sales volumes. Quarterly gross profit registered in at $253 million, or 30.8% of sales, versus $237 million, or 30.2% in the prior year’s Q4. Lower raw material costs were key to the gain.

Still, net earnings dropped about 14% year over year in Q4 to $132.3 million, or $0.86 per basic share. The aforementioned higher income tax rate weighed on the bottom line.

Executive Moves

Also on Feb. 19, Gildan announced that Executive Vice President/Chief Financial and Administrative Officer Rhodri J. Harries will be retiring effective Jan. 1, 2026. Luca Barile, currently Gildan’s chief financial officer of sales, marketing and distribution, will succeed Harries as EVP/chief financial officer, effective March 1, 2025. Harries will remain in the administrative officer capacity until his official retirement to help ensure a smooth transition, company leadership said.

“I would like to express my deep appreciation to Rhod, who has guided our financial performance through many key phases for our company,” Chamandy said. “Since 2015, he has been an invaluable partner to me, his executive peers and to his teams. He has safeguarded the company’s solid financial position through disciplined capital allocation, contributing to the achievement of our long-term financial objectives and setting the stage for the future.”

Barile began his career as a senior auditor at a large accounting firm, Deloitte & Touche, in 2008 before joining Gildan in 2012. At Gildan, he has held various roles in financial planning and analysis.

In another C-Suite move, Gildan announced that Chuck Ward – currently president of sales marketing and distribution – is rising to the newly created role of executive vice president/chief operating officer as of March 1, 2025.

Ward joined Gildan in 2011 through the acquisition of GoldToe Moretz, where he had served as EVP and chief financial officer. He initially led the integration of GoldToe into Gildan. Over the years, Ward has held several senior roles at Gildan, including leading the company’s yarn spinning operations; overseeing supply chain planning; and running the sales, marketing and distribution organization.

“I am very pleased to welcome Chuck and Luca into their new roles, appointments that are a testament to our internal bench strength and the effectiveness of our multiyear succession planning efforts,” Chamandy stated. “They are both outstanding leaders who are well positioned to step into their roles.”

Based on estimated North American promotional product industry revenue of $739.3 million, Gildan ranked fourth on Counselor’s most recent list of the largest suppliers in the promo market.