Profile: Gildan Activewear Inc (GIL)
10 Mar 2014
Gildan Activewear Inc. (Gildan), incorporated on May 8, 1984, is a marketer and vertically-integrated global manufacturer of basic, non-fashion apparel products for customers. It sells active wear products to screen print markets in North America, Europe and other international markets. Gildan is a supplier of active wear for the screen print channel in the United States and Canada, and also a supplier for this market in Europe and Mexico. It sells socks and underwear, in addition to its active wear products, to mass market and regional retailers in North America. In the United States mass market retail channel, Gildan is a supplier of socks. The Company operates in one business segment non-fashion apparel. On March 31, 2010, the Company completed the acquisition of Shahriyar Fabric Industries Limited (Shahriyar), vertically-integrated knitting, dyeing, finishing, cutting and sewing facility for the manufacture of ring-spun T-shirts near in Bangladesh. In April 2011, the Company acquired Gold Toe Moretz Holdings Corp. On May 9, 2012, the Company acquired Anvil Holdings, Inc.
In the screen print channel, the Company sells active wear products, namely T-shirts, fleece and sport shirts in undecorated blank form under the Gildan brand to wholesale distributors, which are sold to screen printers and embroiderers who decorate the products with designs and logos. Screen printers then sell the imprinted active wear to a range of end-use markets, including educational institutions, athletic dealers, event merchandisers, promotional product distributors, charity organizations, entertainment promoters, and travel and tourism venues. Its active wear products are used in a range of daily activities by individuals, including work and school uniforms and athletic team wear, and for other purposes to convey individual, group and team identity. It is also providing undecorated products to branded apparel companies and retailers, which sells imprinted active wear and is not supplied by its existing the United States wholesale distributors. In the North American mass-market and regional retailer channel, it sells a range of styles of socks and men’s and boys’ underwear, in addition to its undecorated active wear products, under the Gildan brand and under various retailer exclusively licensed and private label brands.
Gildan provides products to customers in a range of sizes, colors and styles with enhanced product features, such as pre-shrunk fabrics, and a selection of fabric weights, blends and construction. It has two manufacturing hubs located in Central America and the Caribbean Basin where it has manufacturing facilities, which include textile manufacturing facilities for the production of active wear and underwear fabric and sock manufacturing facilities. It also operates sewing facilities, which support the fabric production from its textile facilities. It’s Central American and Caribbean Basin manufacturing hubs service the North American and international markets.
The Company’s manufacturing hub is based in Central America. Manufacturing operations include two vertically-integrated knitting, bleaching, dyeing, finishing and cutting textile facilities which produce active wear and underwear fabric located in Rio Nance, Honduras. It operates two integrated sock manufacturing facilities in Rio Nance. During the fiscal year ended October 3, 2010 (fiscal 2010), the construction of Rio Nance 4 was completed and the ramp-up of production began in April 2010. In addition to its integrated sock manufacturing operations located in its Central American hub, it operates the United States sock knitting facilities in Fort Payne, Alabama.
The Company’s Caribbean Basin manufacturing hub includes a vertically-integrated textile facility for the production of active wear fabric in Bella Vista, Dominican Republic. Textiles produced at its manufacturing facility in the Dominican Republic are sewn at third-party contractor operations in Haiti and at its sewing facility in the Dominican Republic.
CanAm Yarns, LLC (CanAm) is the Company’s joint-venture company with Frontier Spinning Mills, Inc. (Frontier), operates yarn-spinning facilities in Georgia and North Carolina. It sources yarn requirements from CanAm, as well as from Frontier and other third-party yarn providers, with whom it has supply agreements. It distributes active wear products for the screen print channel out of its distribution center in Eden, North Carolina, and also uses third-party warehouses in the western United States, Canada, Mexico, Europe and Asia to service its customers in these markets. During fiscal 2010, it sold its products in the United States, Canada and Europe and other international markets, which accounted for 88%, 4% and 8% of total sales, respectively. During fiscal 2010, it sold its products to approximately 300 customers.
The Company competes with Hanesbrands Inc., Berkshire Hathaway Inc., Russell Corporation, Anvil Knitwear Inc., Ennis Corp. and Delta Apparel Inc.
Gildan Activewear Inc
33rd floor, 600 de Maisonneuve W
MONTREAL QC H3A 3J2
Company Web Links
- RESEARCH ALERT-Gildan Activewear: BMO cuts target price
- RESEARCH ALERT-Gildan Activewear: National Bank Financial raises target price
- CANADA STOCKS-Energy gains, U.S. data take TSX higher
- Gildan finalizing plans for textile plant in Americas expansion
- REFILE-Gildan finalizing plans for textile plant in Americas expansion