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Gildan Activewear (GIL) to Post Q2 Earnings: Factors to Note
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As Gildan Activewear Inc. (GIL - Free Report) prepares to announce its second-quarter 2024 earnings on Aug 1 before market open, investors are keenly watching for insights into the company’s performance and strategic direction.
Gildan Activewear’s focus on expanding its activewear segment is likely to have been a pivotal factor in the upcoming earnings report. The Zacks Consensus Estimate for second-quarter revenues stands at $851.9 million, which indicates an increase of 1.4% from the prior-year reported figure.
The bottom line is also expected to have risen year over year. Although the Zacks Consensus Estimate for earnings per share has declined by a couple of cents to 71 cents over the past 30 days, it still suggests an increase of 12.7% from the year-ago quarter.
Gildan Activewear has a trailing four-quarter earnings surprise of 5.6%, on average. In the last reported quarter, this Montreal, Canada-based company surpassed the Zacks Consensus Estimate by a margin of 13.5%.
Factors to Consider
Gildan Activewear's concentrated efforts on key product lines, particularly in the activewear segment, are expected to have contributed to top-line growth in the second quarter. By focusing on high-demand items such as fleece and ring-spun t-shirts, the company is capitalizing on consumer preferences.
Gildan Activewear's renewed emphasis on strengthening relationships with retail partners is likely to have boosted revenues. By prioritizing these partnerships and becoming the preferred supplier, Gildan can ensure better product placement and more significant shelf presence in stores.
Signs of stabilization and recovery in international markets are promising for Gildan's revenue prospects. The company's focused, localized approach to international markets, tailored to meet specific regional demands, positions it well to grow market share.
Despite the aforementioned tailwinds, continued softness in the hosiery and underwear category is a concern. The last reported quarter saw a significant 10% decline in this category, driven by an unfavorable product mix and the expiration of the Under Armour license. Additionally, the ongoing trend of consumers trading down to lower-priced alternatives could pressure Gildan's ability to maintain pricing power and profitability in this highly competitive market.
Also, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate.
Gildan Activewear, Inc. Price, Consensus and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Gildan Activewear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Gildan Activewear currently has an Earnings ESP of +0.94% but a Zacks Rank #4 (Sell), thus making the surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Gap Inc. has an Earnings ESP of +4.39% and sports a Zacks Rank of 1 at present. GPS is likely to register top-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.63 billion, which suggests 2.2% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Gap’s fiscal second-quarter earnings is pegged at 41 cents per share, which calls for 20.6% growth from the figure reported in the year-ago quarter. GPS delivered an earnings beat of 202.7%, on average, in the trailing four quarters.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +9.09% and currently sports a Zacks Rank of 1. Abercrombie & Fitch's top line is anticipated to advance year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, which suggests a 15.1% increase from the figure reported in the year-ago quarter.
The company is expected to register a rise in the bottom line. The consensus estimate for Abercrombie & Fitch’s fiscal second-quarter earnings is pegged at $2.11 per share, up 91.8% from the year-ago quarter. ANF has a trailing four-quarter earnings surprise of 210.3%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.23% and a Zacks Rank of 2. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus estimate for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST has delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
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Gildan Activewear (GIL) to Post Q2 Earnings: Factors to Note
As Gildan Activewear Inc. (GIL - Free Report) prepares to announce its second-quarter 2024 earnings on Aug 1 before market open, investors are keenly watching for insights into the company’s performance and strategic direction.
Gildan Activewear’s focus on expanding its activewear segment is likely to have been a pivotal factor in the upcoming earnings report. The Zacks Consensus Estimate for second-quarter revenues stands at $851.9 million, which indicates an increase of 1.4% from the prior-year reported figure.
The bottom line is also expected to have risen year over year. Although the Zacks Consensus Estimate for earnings per share has declined by a couple of cents to 71 cents over the past 30 days, it still suggests an increase of 12.7% from the year-ago quarter.
Gildan Activewear has a trailing four-quarter earnings surprise of 5.6%, on average. In the last reported quarter, this Montreal, Canada-based company surpassed the Zacks Consensus Estimate by a margin of 13.5%.
Factors to Consider
Gildan Activewear's concentrated efforts on key product lines, particularly in the activewear segment, are expected to have contributed to top-line growth in the second quarter. By focusing on high-demand items such as fleece and ring-spun t-shirts, the company is capitalizing on consumer preferences.
Gildan Activewear's renewed emphasis on strengthening relationships with retail partners is likely to have boosted revenues. By prioritizing these partnerships and becoming the preferred supplier, Gildan can ensure better product placement and more significant shelf presence in stores.
Signs of stabilization and recovery in international markets are promising for Gildan's revenue prospects. The company's focused, localized approach to international markets, tailored to meet specific regional demands, positions it well to grow market share.
Despite the aforementioned tailwinds, continued softness in the hosiery and underwear category is a concern. The last reported quarter saw a significant 10% decline in this category, driven by an unfavorable product mix and the expiration of the Under Armour license. Additionally, the ongoing trend of consumers trading down to lower-priced alternatives could pressure Gildan's ability to maintain pricing power and profitability in this highly competitive market.
Also, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate.
Gildan Activewear, Inc. Price, Consensus and EPS Surprise
Gildan Activewear, Inc. price-consensus-eps-surprise-chart | Gildan Activewear, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Gildan Activewear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Gildan Activewear currently has an Earnings ESP of +0.94% but a Zacks Rank #4 (Sell), thus making the surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Gap Inc. has an Earnings ESP of +4.39% and sports a Zacks Rank of 1 at present. GPS is likely to register top-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.63 billion, which suggests 2.2% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Gap’s fiscal second-quarter earnings is pegged at 41 cents per share, which calls for 20.6% growth from the figure reported in the year-ago quarter. GPS delivered an earnings beat of 202.7%, on average, in the trailing four quarters.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +9.09% and currently sports a Zacks Rank of 1. Abercrombie & Fitch's top line is anticipated to advance year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, which suggests a 15.1% increase from the figure reported in the year-ago quarter.
The company is expected to register a rise in the bottom line. The consensus estimate for Abercrombie & Fitch’s fiscal second-quarter earnings is pegged at $2.11 per share, up 91.8% from the year-ago quarter. ANF has a trailing four-quarter earnings surprise of 210.3%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.23% and a Zacks Rank of 2. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus estimate for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST has delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.