Gildan Activewear Plunges 10.01% Amid Strategic Shifts

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

Gildan Activewear's recent performance has been influenced by several key factors. The company's strategic shift towards higher-margin proprietary brands has been a significant driver of its growth. This shift has led to a reduction in reliance on licensed brands, enhancing profitability and brand control. Key owned brands such as DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin have shown strong growth, contributing significantly to revenue expansion. The company's licensing royalty income has also increased, reinforcing the strength of its owned-brand strategy.

Gildan Activewear's global expansion efforts have further bolstered its market opportunities. The company is rapidly expanding its international presence, unlocking revenue streams beyond North America. Investments in digital infrastructure and omnichannel capabilities have also been substantial, with sales from owned-brand digital platforms growing significantly. The company's turnaround strategy in North America's retail segment has cut losses by half, positioning the segment for continued improvement.