For casual day, Gildan Activewear has you covered -- from top to bottom. It makes T-shirts, tank tops, sweatshirts, and golf shirts for private-label use, as well as socks, hosiery, and underwear. Steadily fighting for market share (alongside its primary rival Fruit of the Loom) in several segments of its business, Gildan's products also include Gold Toe socks, Anvil T-shirts, and women's hosiery under the Secret, Silks, and Therapy Plus names. The company makes its merchandise in Central America, Canada, and Mexico. Brothers Gregory and Glenn Chamandy co-founded Gildan in 1984.
The company owns sock maker GoldToeMoretz, which makes socks branded Gold Toe, GT, Silver Toe, Auro, PowerSox, and All Pro; it also holds exclusive US licenses to produce socks under the Under Armour, Mossy Oak, and New Balance names. In other apparel lines, it owns Anvil Holdings, a supplier of basic T-shirts and sport shirts for the printwear market, an area in which it hopes to outdress its competition. Other Gildan family brands include Secret, Silks, and Therapy Plus. The company divides its operations into printwear and branded apparel.
Gildan sells its branded apparel in the US and Canada though its T-shirts and other printwear are sold in more than 30 countries in North and South America, Europe, and Asia. All told, the US accounts for nearly 90% of the company's sales.
Gildan has been experiencing steady growth for the last few years. In 2014 revenue increased 8% to $2.4 billion from $2.2 billion the previous year due to higher sales volume, attributed to a better product mix, along with results from an acquisition. Net income grew 12%, from $320 million to $359 million, from the higher revenue and lower income tax expenses. Cash from operations dropped by $163 million, from $427 million to $264 million, as Gildan spent heavily on inventories and trade accounts receivables.
In order to grow market share, Gildan has been expanding its brand offerings by pushing Gildan into performance fabrics under the Gildan Performance label alongside its New Balance performance products. The company is also repositioning Anvil as a more modern product for younger customers by updating its fabrics and styles. In order to keep costs down the company is building two yarn-spinning factories in the southern US to go along with its existing facilities in Montreal, Canada, and in North Carolina (two plants) and Georgia.
Mergers and Acquisitions
In 2017 Gildan acquired the American Apparel brand, as well as manufacturing operations, at auction for $88 million from retailer American Apparel. The struggling retailer filed for bankruptcy in early 2016 and put its assets up for sale later in the year. Gildan's management cited American Apparel's complementary product line and potential for growth in US and international markets as the primary justification for the purchase. The company declined to acquire the retailer's stores but may acquire its inventory at a later time.