Gildan Earnings: Results and Outlook Largely in Line With Expectations Amid CEO Battle Royale

No-moat Gildan’s profitability aligned with our forecast in the final quarter of 2023, and it issued mixed guidance for 2024. The benign report contrasted with the controversy that has engulfed the company over the past two months since longtime CEO Glenn Chamandy was terminated and replaced by Vince Tyra, a move that led 5% shareholder Browning West to launch a proxy contest to reinstate Chamandy (see our notes of Dec. 11 and Jan. 22). We are still unclear as to why Chamandy apparently disagreed with the board’s vision for Gildan’s future. On the earnings call, Tyra, who joined about one month ago, stated that he is committed to the Gildan Sustainable Growth strategy. The key parts of this plan are innovation, capacity expansion, and sustainability.