Yesterday’s Consumer Pops and Drops: TUP, F, GIL, ECL, and LEG
Price movement of Gildan Activewear
Gildan Activewear (GIL) has a market cap of $6.2 billion. GIL rose by 3.6% to close at $25.41 per share as of February 24, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is 2.7%, -1.2%, and -10.6%, respectively.
At times, the stock has broken the support of all moving day averages. Currently, GIL is trading 4.2% above its 20-day moving average, 3.7% below its 50-day moving average, and 15.5% below its 200-day moving average.
The PowerShares FTSE RAFI Developed Markets ex-US Small-Mid Portfolio ETF (PDN) invests 0.13% of its holdings in Gildan. The ETF tracks a fundamentally weighted index of small-cap and mid-cap developed-market securities outside the US. The YTD price movement of PDN was -7.5% as of February 23, 2016.
The FlexShares Morningstar Developed Markets ex-US Factor Tilt ETF (TLTD) invests 0.05% of its holdings in Gildan. The ETF tracks an index of equities from developed countries outside the US. The index favors smaller, value-oriented firms.
The market caps of Gildan Activewear’s competitors are as follows:
- Hanesbrands (HBI): $10.8 billion
- Ralph Lauren (RL): $7.6 billion
Performance of Gildan Activewear in fiscal 4Q15 and fiscal 2015
Gildan Activewear reported fiscal 4Q15 net sales of $543.8 million, a rise of 39.2% compared to $390.6 million in fiscal 4Q14. Sales of the printwear and branded apparel segments rose by 77.7% and 12.4%, respectively, in fiscal 4Q15, compared to fiscal 4Q14.
The company’s net income and EPS (earnings per share) rose to $67.6 million and $0.28, respectively, in fiscal 4Q15, compared to -$41.2 million and -$0.17, respectively, in fiscal 4Q14. The company reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $101.7 million in fiscal 4Q15 compared to -$15.2 million in fiscal 4Q14.
The company declared a quarterly dividend of $0.078 per share, a rise of 20%, on its common share. The dividend will be paid on April 4, 2016, to shareholders on record at the close of business on March 10, 2016.
Fiscal 2015 results
In fiscal 2015, GIL reported net sales of $2,568.7 million, a rise of 11.7% YoY (year-over-year). Its net income and EPS rose to $346.1 million and $1.42, respectively, in fiscal 2015, compared to $276.7 million and $1.12, respectively, in fiscal 2014.
The company’s cash and cash equivalents and inventories fell by 40.4% and 4.1%, respectively, in fiscal 2015. It reported free cash flow of $159.0 million in fiscal 2015 compared to -$81.9 million in fiscal 2014.
The price-to-earnings and price-to-book value ratios were 26.2x and 2.9x, respectively, as of February 24, 2016.
The company has made the following projections for fiscal 2016:
- consolidated net sales over $2.6 billion
- adjusted EPS in the range of $1.50 to $1.60
- printwear sales over $1.6 billion and branded apparel sales over $1.0 billion
- adjusted EBITDA in the range of ~$545 million to $570 million
- an income tax rate of ~5%
In the next part, we’ll take a look at Ecolab’s performance.
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