About A and G, Inc.
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, intimates, and underwear. Steadily fighting for market share (alongside its primary rival Fruit of the Loom) in several segments of its business, Gildan's brands include Gold Toe (socks); Anvil (T-shirts); Secret and Silks (women's hosiery); and American Apparel, which it acquired after the collapse of the well-known clothing retailer. The company makes its merchandise in the US, Central America, the Caribbean Basin, Mexico, and Bangladesh and has customers in 60 countries. Brothers Gregory and Glenn Chamandy co-founded Gildan in 1984.
Gildan's revenue has progressively tracked upward over the last five years while profits have been stable. In 2018 the company's sales grew 6% to $2.9 billion as strong growth in its main activewear segment was partially offset by a steep fall in hosiery and underwear revenue. Growth in activewear arose from higher volume and selling prices and a more favorable product mix, with demand from international markets and online prominent sources of growth. By product, strong performers included fashion basics and fleeces. A shift to private label brands by mass retailers impacted on sales of socks in the mass market channel, weighing on hosiery and underwear sales. As a result, Gildan reduced capacity in the category, closing a facility in North Carolina, consolidated other factories, and refocused another.
Net income fell 3% to $350.8 million as higher sales were offset by higher raw material and input costs, supply chain disruption, and costs relating to activewear capacity increases. It also reported an uptick in restructuring and acquisition-related costs and higher financial expenses and income taxes. Headwinds were offset by a sharp fall in selling, general, and administrative costs as Gildan's restructuring initiatives -- including consolidation in marketing, sales, distribution, and admin functions -- bore fruit.
Gildan's cash on hand fell slightly during 2018, ending the year $6.1 million lower at $46.7 million. The company's operations generated $538.5 million while its investing activities used $110.9 million and its financing used $433.2 million. The company's main cash uses in 2018 were acquisitions and capex, share repurchases, and dividends, while it drew $39 million from its long-term credit facility.
Gildan's strategy is to generate strong cash flows for investing in its operations. It has invested nearly $1.5 billion over the last ten years in its manufacturing footprint, allowing it to reach a high level of productivity, efficiency, capacity, and flexibility. In 2018 it invested $125 million in its textile and sewing operations, distribution, IT, and green initiatives and commenced production at its newest facility, Rio Nance 6 in Honduras. Further, Gildan's restructuring initiative completed in 2018 was hugely successful, significantly reducing selling, general, and admin expenses in real terms while revenue continued to grow. The initiative included consolidating a handful of smaller warehouse distribution operations into two large distribution centers.
Gildan's main product focus is growing in the fashion basics category, which has become a growth leader due to changes in private-label market dynamics. The Rio Nance 6 facility was established to serve the category, while it also acquired the intellectual property of American Apparel, (which collapsed (for a second time) in 2016) and provided an opportunity to drive further share in the fashion basics market, both in the US and internationally.
Mergers and Acquisitions
In 2017 Gildan acquired the American Apparel brand, as well as manufacturing operations, at auction for $88 million from retailer
11296 HARREL ST
Jurupa Valley, CA 91752-3715
Phone: 1 (714) 765-0400
Employer Type: Privately Owned
Human Resources Compliance Manager: Bonnie Davis
Warehouse Manager Purchasing Assistant: Luis Mendoza
Vice President of Manufacturing: Kevin Potter
Employees (This Location): 627
Employees (All Locations): 1,023
Jurupa Valley, CA