Gildan Activewear Inc. (NYSE:GIL) Q3 2023 Earnings Conference Call November 2, 2023 8:30 AM ET

Company Participants

Jessy Hayem – Vice-President and Head-Investor Relations

Rhod Harries – Executive Vice-President, Chief Financial and Administrative Officer

Chuck Ward – President-Sales, Marketing, and Distribution

Glenn Chamandy – President and Chief Executive Officer

Conference Call Participants

Paul Lejuez – Citigroup

Chris Li – Desjardins

Jay Sole – UBS

Mark Petrie – CIBC

Vishal Shreedhar – National Bank Financial

Martin Landry – Stifel

Brian Morrison – TD Securities

Stephen MacLeod – BMO Capital Markets

David Swartz – Morningstar

Sabahat Khan – RBC Capital Markets

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2023 Gildan Activewear Earnings Conference Call. Please be advised that today's conference call is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Jessy Hayem, Vice President, Head of Investor Relations. Please go ahead.

Jessy Hayem

Good morning, everyone. Earlier, we issued a press release announcing our results for the third quarter of 2023. We also issued our interim shareholder report with the Canadian Securities and Regulatory Authorities and the U.S. Securities Commission, which are available on our corporate website. Joining me on the call today are Glenn Chamandy, President and CEO of Gildan; Rhod Harries, our Executive Vice President and Chief Financial and Administrative Officer; and Chuck Ward, President, Sales, Marketing and Distribution.

This morning, Rhod will take you through the results for the quarter and a question-and-answer session will follow. Before we begin, please take note that certain statements included in this conference call may constitute forward-looking statements, which involve unknown and known risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. We refer you to the company's filings with the U.S. Securities and Exchange Commission and Canadian Securities Regulatory Authorities. During this call, we will also discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable IFRS measures are provided in today's earnings release as well as our MD&A.

And now I’ll turn it over to Rhod.

Rhod Harries

Thank you, Jessy. Good morning all and thank you for joining us today. This morning, we reported our third quarter results, which unfolded largely in line with our expectations. We resumed our sales growth trajectory and delivered operating margin, which is back within our target range, a testament to the fact that our competitive position remains very strong even in a challenging environment driven by our industry-leading vertically integrated manufacturing platform and our continuous focus on optimizing our operations. So we ended the quarter with net sales of $870 million, up 2% year-over-year, and operating margins of 18.1% with GAAP EPS and adjusted EPS of $0.73 and $0.74 respectively.