What Will Drive Gildan Activewear Inc.’s Growth In The Next Two Years?
Gildan Activewear Inc (NYSE: GIL), has displayed decent growth in revenue in the last few quarters. During the recent annual earnings the company’s revenue grew by 6.4% y-o-y for the full year sales for 2017, reported at $2.7 billion. This was driven by a meaningful 10.4% organic growth across its Printwear segment sales, while Branded Apparel sales were slightly down by 1% from the prior year’s level. All in all, GIL delivered a decent year as the company completed three meaning acquisitions which included an incremental sales contribution of approximately $133 million to its top line.
Going forward, we are projecting revenues for the two segments of the Company to grow as the company is working on their long-term strategic plan for sustainable growth. Overall, we anticipate the company’s revenue to grow at a compounded annual growth rate (CAGR) of 6.2%. We have built an explanatory dashboard How Is Gildan Activewear Inc Likely To Grow In the Next Two Years to outline major drivers of revenue over that time period.
Estimating GIL Inc Revenue Growth
GIL Inc generates revenue from two reportable segments of the Company: Printwear Segment and the Branded Apparel Segment
As per our analysis, we believe that both the reported segments of the company will report progressive growth in the next two years. The Printwear Segment is expected to continue to drive future revenue and profitability growth for the company, in line with the guidance provided by the company.
The Company is more than ever focused to better leverage their go-to-market capabilities, and drive operational efficiencies across the front end of their business for the years ahead. All these factors, coupled with strong sales momentum, will enable GIL Inc to continue to grow its top line. Our detailed estimates have been highlighted in our dashboard above. You can make changes to our assumed figures to arrive at your own revenue and growth estimates for the company.
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