Gildan Activewear Plunges 10.01% Amid Strategic Shift

On April 3, 2025, Gildan Activewear experienced a significant drop of 10.01% in pre-market trading, sparking investor interest and concern.

Gildan Activewear has been undergoing a strategic shift towards higher-margin proprietary brands, which now account for over 50% of its total net sales. This move away from licensed brands like Calvin Klein and Tommy Hilfiger has enhanced profitability and brand control. Key owned brands such as DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin have shown substantial growth, contributing significantly to revenue expansion. The company's licensing royalty income has also increased by 10% year-over-year, reinforcing the strength of its owned-brand strategy.

Gildan Activewear is rapidly expanding its international presence, with only 20% of its net sales currently coming from international markets. The company's investment in All We Wear Group, a European fashion platform, will accelerate its global footprint. Additionally, the company is leveraging AI-powered technologies to streamline operations, improve supply-chain transparency, and enhance digital merchandising, driving incremental margin expansion. The company's turnaround strategy in North America’s retail segment has cut losses by half and added more than $15 million in profitability, positioning the segment for continued improvement.