Counselor Top 40 supplier Gildan (asi/56842) increased total company sales 2.3% year over year to $712 million in the first quarter of 2025 compared to the same quarter in 2024.

In a financial report released April 29, the Montreal-headquartered publicly traded company stated that a 9% sales rise in its activewear division powered the companywide gain. The activewear business includes, but isn’t limited to, business with the North American promotional products industry.

“We continued to see market share gains in key growth categories and a positive market response to our recently introduced new products, which feature key innovations, including our new Soft Cotton Technology,” Gildan said in reference to its activewear division performance.

Meanwhile, sales in Gildan’s underwear/hosiery division declined 38% to $64 million, owing in part to the firm phasing out its Under Armour offerings in this category and other factors, like “broader market weakness,” Gildan said.

Despite a $7 million year-over-year rise in expenses and an income tax rate increase from 3.6% to 15%, Gildan increased net earnings by 7.6% in Q1 2025 compared to Q1 2024, tallying $84.7 million. A lower outstanding share base helped propel the rise.

“Our solid foundation, underpinned by our vertically integrated business model, and our operational and financial discipline, provide us with agility to navigate the current uncertain environment.” Glenn Chamandy, Gildan (asi/56842)

In Q1, basic earnings per share rose 19.1% to $0.56. Adjusted diluted EPS were $0.59, flat versus last year, “reflecting the positive impact of the lower outstanding share base offset by the negative impact of the higher adjusted effective income tax rate,” Gildan said.

Other notable measurables: Gross profit rose by $11 million on an annual basis in the quarter to $222 million, while operating income increased by $25 million to $130 million total.

Despite concerns about the impact of U.S. tariffs and other changes in international trade policies, Gildan believes its top-line sales will grow in the mid-single-digit percentage range over the whole of 2025, with Q2 sales in particular increasing at that rate as well. The firm said the positive outlook reflects belief that sales of key product categories will flourish thanks to factors like new program launches and market share gains.

“Through the continued successful execution of our three strategic pillars – capacity expansion, innovation and ESG – we are not only further strengthening our competitive position but also driving top-line growth and enhancing profitability,” Glenn Chamandy, Gildan’s CEO and president. “Our solid foundation, underpinned by our vertically integrated business model, and our operational and financial discipline, provide us with agility to navigate the current uncertain environment.”

Gildan’s overall performance outperformed the promo industry average in Q1. Research from ASI shows that suppliers’ collective sales declined on average by 4.8% in the first quarter of 2025 compared to Q1 2024. Distributors’ collective sales were down 3.6% during the same comparative period.

Based on estimated North American promotional product industry revenue of $739.3 million, Gildan ranked fourth on Counselor’s most recent list of the largest suppliers in the promo market. The firm is currently facing a lawsuit in which former members are alleging Gildan owes them a combined $25.6 million. The case is an outgrowth of last year’s epic proxy fight that saw Chamandy ousted, only to later return as CEO, president and board member.