Gildan Activewear Joins FTSE All-World Index

Gildan Activewear Inc. has been added to the FTSE All-World Index. The company is a vertically integrated manufacturer of everyday basic apparel, including activewear, underwear, and hosiery products. Its primary product categories include activewear, socks, and underwear. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America under a diversified portfolio of Company-owned brands. Manufacturing operations are located in the US, Central America, the Caribbean, and Bangladesh.

Gildan Activewear Inc. has been added to the FTSE All-World Index, a significant milestone for the vertically integrated manufacturer of everyday basic apparel. Gildan's inclusion reflects its growing influence in the global apparel market, particularly in the face of increased geopolitical uncertainties and trade tensions.

Gildan's diverse product portfolio, which includes activewear, socks, and underwear, has positioned the company well to navigate the challenges posed by tariffs and trade disputes. The company's manufacturing operations are strategically located in the US, Central America, the Caribbean, and Bangladesh, which helps insulate it from fluctuations in geopolitics and tariffs.

The addition to the FTSE All-World Index comes amidst a wave of mergers and acquisitions in the U.S. footwear and apparel sectors, driven largely by the impact of President Trump's trade policies. According to a recent article, the number of deals announced year-to-date has reached $21 billion, surpassing the previous record of $16.1 billion set in 2019 From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1]. This surge in dealmaking is attributed to the need for scale and strategic fit, as companies seek to negotiate better terms and insulate themselves from tariff-related disruptions.

One notable example is Gildan's acquisition of Hanesbrands for $2.2 billion, which was advised by Morgan Stanley. The deal was driven by a desire to increase scale and protect against tariffs, as both companies produce a significant portion of their products in Central America and the Caribbean From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1].

The inclusion of Gildan in the FTSE All-World Index is a testament to its resilience and strategic positioning in the face of global trade challenges. As the company continues to expand its manufacturing footprint and diversify its product offerings, it is well-positioned to capitalize on opportunities arising from the current geopolitical landscape.