Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Gildan Activewear Inc . (NYSE:GIL) has reached a remarkable milestone, with its stock price soaring to an all-time high of $52.2. With a market capitalization of $8.02 billion and a P/E ratio of 20.5, InvestingPro analysis indicates the stock is currently in overbought territory. This peak represents a significant achievement for the apparel company, reflecting a robust performance that has caught the attention of investors and market analysts alike. Over the past year, Gildan Activewear (TSX:GIL) has witnessed an impressive 1-year change, with its stock value climbing by 52.77%. The company’s strong momentum is further evidenced by its 10.1% year-to-date return and management’s aggressive share buyback program. For deeper insights into GIL’s valuation and growth prospects, InvestingPro subscribers can access 14 additional expert tips and comprehensive financial analysis. This surge underscores the company’s strong market position and the successful execution of its strategic initiatives, which have resonated well with its consumer base and stakeholders.
In other recent news, Gildan Activewear reported noteworthy financial developments. The company announced a pricing of C$700 million in senior unsecured notes, with the intent to use the proceeds for repayment of existing debt and other corporate purposes. This offering is anticipated to close around November 22, 2024, managed by a syndicate of financial institutions including BMO Capital Markets, CIBC (TSX:CM) Capital Markets, and Scotiabank (TSX:BNS).
Simultaneously, Gildan Activewear reported record Q3 sales and earnings per share (EPS) growth. The company noted a 2.4% year-over-year sales increase to $891 million, an adjusted operating margin of 22.4%, and an adjusted diluted EPS of $0.85, marking a 15% increase. Gildan returned $404 million to shareholders in Q3, totaling $643 million for the year.
Despite the phase-out of Under Armour (NYSE:UA), the company experienced a 6% sales increase in Activewear during Q3. The company’s future expectations include mid-single-digit sales growth and improved operating margins through 2025. The guidance for full-year 2024 adjusted diluted EPS has been raised to between $2.97 and $3.02. These are the latest developments in Gildan Activewear’s financial performance.
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