Dive Brief:
- Gildan Activewear Inc. announced preliminary Q1 revenue of $695 million, a 1% year-over-year decrease, and reaffirmed its full year outlook, according to a press release Monday.
- After 90 days in the position, newly-appointed CEO Vince Tyra also announced his strategic priorities for the company, which include developing a production facility in Bangladesh, deepening relationships with retail partners and expanding internationally.
- However, Tyra didn’t mention the potential sale of Gildan, which the company announced it was considering last month, or the pending proxy battle with shareholder group Browning West, which has been ongoing since Gildan fired its former CEO Glenn Chamandy in December 2023.
Dive Insight:
Gildan will release its Q1 earnings on May 1, and the annual meeting where shareholders will vote on the composition of the board is scheduled for May 28. The company also noted it would provide a comprehensive strategic plan during its Investor Day this fall.
“While Tyra provided some new insight into Gildan’s strengths and weaknesses, his priorities align closely with those of the Gildan Sustainable Growth plan that has been in place for two years,” David Swartz, senior equity analyst at Morningstar Research Services wrote in an analyst note on the presentation.
The Gildan Sustainable Growth strategy focuses on three pillars: growth, innovation and ESG, per the release.
Browning West released its own press release following Gildan’s presentation, calling Tyra’s presentation a “copy” of Chamandy’s strategy.
“Browning West believes that Vince Tyra’s ‘new plan’ raises troubling questions about the current Board’s stewardship of the Company and confirms our fears that Mr. Tyra may lead Gildan down a similar destructive path as the ones he did at the helm of Fruit of the Loom Inc. and Broder Brothers Co.,” the firm said in the release.
Gildan has not responded to Fashion Dive’s requests for comment, and Chamandy declined to be interviewed.
Earlier this month, Browning West released its own presentation about its board nominees and its value-creation plans for the company, which include a proposed value creation of earnings per share of $6.02 and a share price above $100.
Swartz said those figures “are fanciful as they would necessitate large cost cuts amid share gains in crowded categories.”
In comparison, Swartz said Tyra’s plan was “more reasonable.”
