CIBC maintains Outperformer on Gildan Activewear, raises PT to $60 from $56

CIBC maintains Outperformer on Gildan Activewear, raises PT to $60 from $56

Montreal, July 2, 2025 — CIBC has maintained its "Outperformer" rating on Gildan Activewear Inc. (GIL: TSX and NYSE) and raised its price target to $60 from $56, reflecting the company's strong second-quarter 2025 results and reaffirmed full-year guidance.

Gildan Activewear reported record net sales of $919 million, up 6.5% compared to the prior year, driven by a 12% increase in Activewear sales to $822 million. The company also reaffirmed its full-year 2025 guidance, including the impact of tariffs, while narrowing its adjusted diluted EPS 1 guidance range [1].

CIBC's analysts highlighted Gildan's ability to navigate the current fluid operating environment, driven by its vertically integrated business model. The bank's analysts noted that Gildan's strong performance in key product categories, such as Activewear, and its ability to maintain a competitive pricing strategy have contributed to its solid financial results.

The company's gross profit improved by 110 basis points to 31.5% of net sales, primarily due to lower raw materials and manufacturing costs. Operating income increased to $199 million, or 21.7% of net sales, reflecting the company's ability to control costs and maintain profitability.

CIBC's analysts also noted Gildan's commitment to sustainability, as the company was recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights and included on TIME’s World's Most Sustainable Companies list.

Looking ahead, CIBC expects Gildan to continue its strong performance in 2025, driven by its Gildan Sustainable Growth (GSG) strategy. The bank's analysts remain confident in Gildan's ability to maintain its competitive position and drive profitable top-line growth.

References:
[1] https://www.quiverquant.com/news/Gildan+Activewear+Reports+Record+Second+Quarter+2025+Results+with+Strong+Sales+Growth+and+Reaffirms+Full+Year+Guidance