Gildan Activewear Inc.

Thank you for standing by and welcome to Gildan ActiveWare's 2025 Q1 Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jesse Hamm, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us. Earlier today, we issued a press release announcing our results for the first quarter and maintaining our guidance for 2025. We also issued our interim shareholder report containing management's discussion and analysis and consolidated financial statements. These documents are expected to be filed with the Canadian Securities and Regulatory Authorities and the U.S. Securities Commission today, and they're available on our corporate website. As a reminder, please note that we'll be holding our AGM tomorrow morning at 10 a.m. ET with more information available on the events page of our corporate website. Now joining me on the call today are Glenn Chimandi, President and CEO of Gildan, Luca Barile, Executive Vice President, Chief Financial Officer, and Chuck Ward, Executive Vice President, Chief Operating Officer. This afternoon, we'll take you through the results for the quarter, and then 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 MDNA. And now, I'll turn it over to Glenn.

Thank you, Jessie, and good afternoon, everybody. As we highlighted in our press release, you can see that the Gildan Sustainable Growth Strategy, or GSG, continues to drive profitable growth, and we are very pleased with our progress and performance. We delivered first quarter sales of 712 million, which were up 2.3% versus last year, driven primarily by strong activewear sales growth of 9%. Our first quarter growth rate would have been mid single digits when you exclude the phase out of our Under Armour business. Our adjusted earnings per share of 59 cents, essentially flat year over year, which includes a negative impact of enactment of global minimum tax and the positive impact of job credits. Despite the rapidly evolving environment, we remain highly committed to continue executing in our GSG strategy across its three pillars, capacity, innovation, and ESG. We continue to be on a path to deliver on our three-year objectives for 2025 to 2027 period, which include net sales growth of mid single digit range and adjusted EPS growth in the mid teen range. Now looking at the current year with the recent tariff announcement and despite the challenging macroeconomical environment, we are maintaining our guidance for 2025. supported by many drivers which should allow us to deliver on our objectives for the full year. As we mentioned in the past, about three quarters of our expected sales growth for 2025 is coming from new programs. And we remain very excited about our innovation pipeline, such as our soft cotton technology, our plasma print, our color blast, just to name a few, which is increasing our competitive advantage and allowing us to continue to drive market share gains. Luca will go over our 2025 guidance in more detail, but I'd like to address the current operating environment and the recent tariff announcement. Although the situation remains fluid with respect to tariffs, the 10% reciprocal tariff now in effect on goods imported into the U.S. from most countries, I'd like to leave you with three points to keep in mind. First, remember, we are a global vertically integrated low-cost manufacturer, which we believe is our competitive advantage as it provides a great deal of flexibility and agility. Second, we have a significant U.S. cotton and yarn content in our products. which should allow for significant tariff savings since a 10% reciprocal baseline tariff does not apply to the value of U.S. content imported products, which puts us in a very strong competitive advantage. Finally, we have other levers which we can use in this environment, such as price. So, in conclusion, we will continue to monitor the situation closely. We are cautiously optimistic as we look ahead. Though we are well positioned to maneuver through a period of uncertainty, thanks to our strong industry positioning, our agility to operate in dynamic environments. However, while we continue to focus on the things that we can control, I'd like to emphasize that regardless of the environment, we will continue to leverage our GSG strategy with a focus on executing long-term shareholder value. I look forward to answering your questions after our formal remarks, and now I'd like to turn it over to Luca for a financial review.