GIL - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2022 Gildan Activewear Earnings Conference Call. All lines have been placed on mute to prevent background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator instructions] Finally, please be advised that today's conference is being recorded. I would now like to hand the conference over to Sophie Argiriou, Vice President of Investor Communications. ahead. go Please

Sophie Argiriou

Good Earlier Gavin. announcing thank for of you earnings Thank morning, morning, we us. XXXX. quarter second this for release issued joining results you, the and our our press

shareholder Executive Shortly, interim Chief financial and Glenn Chief the and the Chamandy, Canadian will Securities consolidated take documents Q&A securities our issued Gildan's our regulatory These corporate also report management's and analysis follow. statements. a with discussion With Vice Rhodri you session which website. filed today Executive be on and Harries, me Commission authorities is be Financial President and company's containing Rod through will Officer; President, and and available will after Administrative and and results, the US Officer. will We the

constitute materially results begin, and included that Exchange or to factors, securities with please call risks, Securities US uncertainties, from We note this implied the and the and conference actual company's to the you statements. unknown known which forward-looking forward-looking future regulatory cause Commission take Such Canadian we refer and differ certain statements. other such filings by expressed authorities. results in Before statements could forward-looking involve statements may

MD&A. During our to With this financial release that, provided are will turn comparable certain IFRS measures in measures. discuss I'll the over non-GAAP call, we also Reconciliations financial directly earnings Rhod. to most in and it today's

Rhodri Harries

capital million respectively. flow on XX% basics for our execute were quarter XX%, in quarter and the and all, reinvesting strong to that and from uncertainty, and you to We our are generated pleased sales and of and of have control delivered morning priorities to shareholders. Simply XX% joining to performance longer-term our through this well we is our to today. reflection record $XXX capital cash on sustainable announce up the line over challenges top we the continue we returning supply our realize and continue we business strategy, to cost allocation business in morning put, growth we bottom Good strong structure chain possible ongoing of positioned EPS, free a adjusted with the our as believe EPS thank back benefits believe navigate Sophie. you, we up to the us and Thank call currently for We given and as and another macroeconomic on growth. as as position Gildan any execute and near-term we the

weaker and active higher part in driven ongoing North Asia, in compared international fleece Activewear offset by largely discounting second in to We to $XXX was growth in We drivers Now, or higher turning the quarter. and our category. offset by mix performance year volume of the last lower last and prompted quarter, generated see $XXX prior-year million, sales Activewear, for ring well growth promotional up shutdowns. sales XX% product demand the to in in prices America due key surges million, Sales products, and hosiery as sales selling the lower the fund pleased year, by have cases strong up results America. Activewear North continued shipments year-over-year COVID to over lower were favorable underwear by as specifics totaled particularly XX% of where base unit higher in of in partly quarter. driven in volumes sales of versus

of this as in million, to environment to hosiery softening and generated was as in the a lap the year. payments X% year's stimulus retail driven of having due Finally, quarter sales decline we unfolding demand the where the by category, well underwear impact $XXX last

we're sales performance On for considerations, our with pleased the these quarter. very whole, given the overall all

point supply prices of of of for XXX product versus gross chain, headwinds margins the impact We balance quarter of mix. basis gross manufacturing benefited Despite the The performance. the the remained of margin costs, generated in and the of points non-recurrence by growth margin of gross across to quarter our net a XX.X% On margin GAAP included last margin points GAAP decline of the adjusted gain, offset our XXX to basis was our and insurance net partly basis, impacted our higher which decrease, the XX.X% and levels and margins adjusted gross inflation margin of on favorable basis Moving adjusted year. year. rising higher last due selling XX.X% which gross strong. margin margin of both gross XX

SG&A. the to The over million, Expenses to on the inflation volume-driven increase was million distribution and of $X impact due approximately up for primarily costs year. $XX Turning second expenses. the totaled overall higher quarter prior

financial program, a up our share respectively, over Adding close quarter this our points income prior XX% benefit elements, and an an up up X% quarter last operating $X $X.XX, continued than in of more compared SG&A buyback as XXXX new and we However, sales only on sales, points impact range adjusted basis XX target EPS of strong to basis, just XX% adjusted we XX.X% basis, management, slightly to cost for million increases year. a to compared below renewed of of inflationary year, to with lower the and the percentage fell XX.X% on XX aggregate million over and reflecting net high taxes, second reflecting by to which count diluted of $XXX just by the million down the offset and XX%, cost net the the expenses which benefit a generated we After overall these XX%, of last improving pressures. expenses with over respectively, totaled program the and leverage basis Diluted adjusted NCIB year. and quarter margin were up reported EPS from end XX.X% reflecting for of XX%, earnings XXXX announced in the the was X% which last $XXX and XX% morning. year, record $X.XX

impact activities flow a cash cash $XXX CapEx Caribbean received to the in Moving million on of million of the proceeds, which the to and requirements, sheet higher America, and year-over-year cash benefit of work-in-process approximately material capital flow Bangladesh, impact in last working flow $XXX related costs. free Frontier capital insurance net quarter, reflected the operating quarter inflation year. and operating to items. Central unit on inventories our driven we expenditures last raw million, adjusting acquisition, After year and the We $XX higher balance $XXX to the by in the and for delivered the after $XX compared higher generated tied balance of decline we from of million of projects cash of million and

the our performance has range. of quarter low of the net quarter, translated This ended we a up our debt the half with first second of X.X million position sums into combined and end $XXX leverage ratio in first target Finally, results a at the strong times overall which, of the for quarter our with year.

account with the is into seeing remains believe Also, slowing, by Now the products, over to deliver move This environment, Sophie. positive which we as as we some ability smaller and this back move major shift formal customer back-to-basic represents concludes distributors. on of a that, remain performance and this to imprintables our Gildan of together, of our are supported feedback all we of turn about from underwear and we events announced I'll recovery our impacting our forward hosiery business. earlier we of second first-half remarks. demand, overall tailwind seen tourism softening sales while we it objectives our a X-year have which the benefits our while this is and combined for to year, travel strategy, confident a and part retail ongoing GSG large With getting national record Activewear my Putting to the our are we the year. strategy, half given the primarily

Sophie Argiriou

question-and-answer At you, over to our time, the to it ready so session. I'm turn start Thank we going Gavin, can to this operator, session. the Rhod. begin we're

Operator

the from Paul of instructions] of line Citi. Lejuez [Operator Please question your ask first Your question. comes

Paul Lejuez

customers half within big and result the your do more in Thanks, the any chain market Then the for guys. perspective maybe you and more Curious the growth your growth specifically? to are efforts customers. talk second up as overall to second, if expectations Thanks. just the new a for if both or the the you're all is market, curious a relative existing growth market growth first from of picking in supply your coming half, from if Great. of the what could near-shoring about year

Rhodri Harries

for the Thanks question, Paul. Okay.

look we pleased that first think XX% with very that the our volume. half first growth the strong look of Effectively, If we if way unfolded. and split you at quarter are if you had XX% look we obviously in at way price, first quarter, the very a the year, quarter, I unfolded, we about growth

saw of in versus As in was China It and remainder the the little growth. real if retail. called Then on very say, in and the was international. was second effectively, distributor America saw a the was as strong driven in volume negative quarter, side, related into was because I on we weak of driven saw the really drill was the sales we seeing bit we we because underwear what Activewear International bit we and moved that America, the by effectively, would effectively, saw things really anything in a we're interesting about then of activewear, mix. and out, very it you we The into on X/X elsewhere. price, growth growth and quarter was what to and was what growth North hosiery by and strong second weaker, North growth was strong little

activewear it's gaining share. we we're pleased think American well, very market with going North Our very how we're unfolded, very definitely business and

because saw were if for of look have fleets, been environment, effectively fund driver share affected less been America, as rings it result by you and approver North you three a we're products many key would say, those areas. say look the a seen If we would for growth. growth it in big has at we been at a has strong business that, has market where, or Activewear, the retail I we've categories, example, I differentiated POS of others some very the

as want certain strong, extent, want we've business want experiences, want got want and they from but hard where I goods the the because as but we half slowing to we going a July, half, on, remains of positive move moved said, second we have the into they that's this travel, a in tours and we've into experiences, large to outlook if that's say, and some order very Printwear strength shift seen a from would the events June back people they As they in we're book.

seen haven't and side on We very that back half about feel of we the cancellations business. so the good

On with on that's inventory the retailer of our and call retail side, business, in out the weaker, obviously side come we expect into what back. side, respect that occurring to the that's is as but Printwear anything over called really we the retail, to that and the accounts, which are time, goes which because adjustments of national hosiery, though, underwear, we

way I the are about think, in all all, we evolving. very good feel things

Glenn Chamandy

maybe Yes, still your second on we near of on of storing, opportunity. and lots see your question look, part

to we looking So and customers back far, with into obviously as half capacity. be focus is additional relationships we've as to be our It's it's our about have business going bring new very but just also into on new going 'XX we the developing and to capacity, business, nearshore. tight our forward opportunity, to and going of obtain new the expand a obviously be to move to lot core we is been not programs continue on

Paul Lejuez

in how quarter? and there, in resolving up any way? second follow do see half? occurred to Any supply held half? constraints facing Just bottlenecks it beyond the back those you some be Were you in were second that you in the second would Or XQ,

Glenn Chamandy

a book. put probably moved shipping Well, perspective. pretty selling, look, have good months we've and we're this to We're been in tight has not basically goods order XX if everything in inventory our finished we

giving ramps as Bangladesh in America are our just absorb tight. yarn, focusing year, in relatively said, contracts, is can as going the were the we year to Central so capacity in we facility of all well, we are We needed to start through next plans we us back And into We but customer relations yarn on of are which work as our capacity expansion as of capacity story. XX QX with acquired that easy probably additional time we're much up which via pretty of complete, we'll and half which and increase by will building our their subsiding December. move and Frontier now,

I to as I of the taking share 'XX. think, additional of think nearshoring, as support, overall we positioned programs, market well we're new into with move capabilities capacity well opportunities the really and as

Paul Lejuez

luck. guys. Good Thanks,

Operator

Thank you.

from Shreedhar question next of question. of Bank. the National Your Please your comes line Vishal ask

Vishal Shreedhar

In my POS us Hi, questions. POS indications was us July could industry. taking share indications the past, thanks hoping would the power for intra-quarter. you you those some of for with I give

Glenn Chamandy

it's a our little disturb I pressure, still good think was bit a good shape, them a to think I really like said, stimulus the higher energy mass and Where our market of we is think them of own not end just momentum et the very saw our slightly, of to prints don't national in June little retail constantly short the really, think think the at-once business, t-shirts It's of inventory, and been has July and Rhod cetera, product in lot moved saw and hasn't since there. but it's ever say act and those shopper, and food, is guys that's like think, it's we national for to end business. the of the in is Where and typically levels for I I similar easy business, sell a brands. Well, content. retailers have a and read typically come thing because of cost trajectory I in but moderately term. it's and account pullback, bit we obviously, These as the The QX, of really retail business I been of downward at them. business which account a about are replenishing of the July you've channel, are an and these high all their inventories private in negative, on

at what stop buying and businesses. they So they can that type stop more they one look are things at

back. through their the as next or see I come month line, that work in two the we'll them think to get retailers inventories business in back that

of from as and that think working feedback retailer our all, it's use issue All as think I just sells we're still an in I think their that's increasing pretty part customers national a I inventories the sales overall we timing well. it's and positive. through account

be don't until get know think what and future I position, we're there. in the a good we we will

Vishal Shreedhar

us pricing Maybe commodity and the you on Okay. remind us next pricing where I your be guess question feel respect commodities? understand would with the could just inflation, with to particularly is help or to your the about cotton. with key respect cotton how you outlook

Glenn Chamandy

into our raised pricing Well, prices, combination a pretty say had I and the you position much fixations, there's that pretty start sideways when in an at we would now fix which at in is as cotton firm be we some pretty increases, we'll prices. but but still I other I lots freight Look, set our that today. promotional the today. of is inflation particularly inflation only goods than there's price the don't movement increases, cotton level inflation. good much still discounts but from set there tell that pricing energy, is are levels there's of the inflation, see deflation area in of our much bit we much of cotton eliminated promotional price goes. labor I bit would there's to with and obstacle, coming We some of going levels our market when we little think we the side a is we that lots we've Asia, of in took the market. is see where we cotton little we future, where seen discounts probably a that from pricing, a which and how that, set the going move is same The so

Vishal Shreedhar

color. Thank the you for

Operator

your Your next MacLeod Stephen question. question from the comes Please from ask Markets. Capital line BMO of

Stephen MacLeod

you. Thank morning. Good

line. the had a just on around deceleration that saw you some line. QX, range, into then circle in mid-single-digit strong and up to of you top Accent wanted Just very sort indicated put top you

outperformance when to had your QX you the Just relative wondering saw expectation call. where we

Glenn Chamandy

strong channel continue really of continuing That Rhod what are market It's are ones on is are resilient. we're channel. to to are it's which and see categories. the wholesale share, pack obviously, etcetera. getting fashion that leading the we're rings our in channel, taking in and well, basically the as we're T-shirts, up and those events the gaining experience, share really recovery basics distributor and all fleece doing We're and in the our momentum particularly teaser segment, within about like the said, areas the the open driving share those in our Those

Stephen MacLeod

Great. just it relates business Then to business. accounts national just remind is sales into you us Thank your you. that turning Can that the market? big as how to

Glenn Chamandy

it's a recovery been don't the We an really break that but sales and has in to market in US I the of terms down, of obviously overall us our terms big area we growth help its our actually think of a short-term overall, it's is still driver we small in it as decline. It's part think a but forward. for move business that

Stephen MacLeod

great thank That's you. Okay.

Operator

of question. line question Jay next Please ask the your Your from Sole comes of UBS.

Jay Sole

the seen see Great. below normal. just elaborate it? you last you the of you a how the so if has bit of or couple little much. on now, adjust levels Thank quarters distributor Have wondering inventory been can that I'm at level. Glenn, you Obviously, well do

Glenn Chamandy

that weeks on but the QX. had basis, probably the have we I would it's the of that of say supply Well, always a end the similar of slight go-forward weeks at we so pickup, QX been that there's maybe of because a is end in supply

level levels. below the cover sales channel. That's the following inventory a and typically to quarter 'XX of still normal in have We

Jay Sole

it. Got

continues cash How capacity Obviously, company on the sort stock buy Then thinking in of year that maybe increased? priority the just about authorization of maybe buy now to just has back Okay. are to free the buybacks. terms of you rest and shares. for more back the

Rhodri Harries

it Jay. existing expiring look now. program, Well, right, our you at there's just just yes, if expired

all effectively capital we return did get of a new new part X.X% last We we think key the go do X.X we'll I continue on the and a XX% program, work great we we've to announced away shares and year. over with existing or that it capital our didn't stock so job of effectively repurchased allocation that's want effectively our against of overall program, million program now as framework as forward. why and continue to done, a

look at we're flow, our the is available you operations, focusing free If dividends. great for for really, and part, cash see available this environment, doing cash obviously, It's free own our M&A, but there. in most and we're job a that don't for on we flow our

I think as we flow that support leaves free to buybacks go forward. cash available

will continue definitely I think as you'll over been we have the see last very year. doing

Jay Sole

Got it.

so Okay. Thank you much.

Operator

Please comes the of question. question of Hannan your next line Luke from Your Canaccord ask Genuity.

Luke Hannan

and remember Good that be the think or Thanks. said had seeing what Is on that likely based that you're you occur to to correctly, still half if earnings your year more in of XXXX. in Glenn, the the that would first the view today? so, restocking likely second morning, previous is call is view, I more the I everyone. out if in on play

Glenn Chamandy

a are hard of for that service never see strategy, and is of that for part the we would for an to we and honest way it's working our as inventory the levels reduction those that of like I inventory is with customers, it's of stay back-to-basic to ability is us say SKUs say with more objective anybody, for so be our get our think may necessarily the basically, of the our they perfectly so our not good to think ever advantage to obviously, where today, it's market to the the levels would capital balance that and to today. you, in up keep objective channel, I 'XX because us I

our on a foresee be the of sort it better their create I long-term in back then the and on really, and would better. because that's really able in then want to coming probably can the move don't I to think this maybe low value because we we as very we'll react they because our much we for have capital get customers in today. market "Hey, return we saying, been inventory basically service the and better plan and it say, back and I think a 'XX good COVID that channel balance and have side, into get high could to I side, great

Luke Hannan

guess but asking XXXX be not distributors and on the fairly the follow-up, revision revision necessarily weaker, is are of upward might again, my guidance? for the the implication had be I Then case, for might of so not clearly, would of currently any kind that on see on retail the pacing X-year that outlook XXXX with see but I'm strong the be guidance, even implication that an optimistic. very it which a when Investor the recognizing softer year it's so year, balance Understood. the at would still we the of early then if very, a they a that and that fairly when we like environment you is might this well you here, sounds Day, ahead balance Okay. of outlined guidance still balance, clean inventory, are

Glenn Chamandy

dry last guidance. ink is in the not the Well,

I we approve have short ago. just time think basically pretty has a been to

I continuing it. we're think to drive against

CAGR target, track. seven I basis, a to think we're and it's aggressive an XX on it's on

a we within obviously, I day, We're the I range, as the think bar the then us to. of we we the end capabilities we're on, will gave but function period growth we bringing on that our don't it, achieve of we point set the range get to what actually a and forward. to and the go future where maybe comfortable is Once and communicated know in sales capacity. the think, we good track we that's that's we're news, basically that achieve of why it, that the be, at is

ramp at have can between which we've So to then I second continuing a think, on up we so and continue we then as have capacity, to done, are we Bangladesh, America, in look obviously build. and Bangladesh Central we bringing plant

We once have for we'll we're target. it, we resetting the good think and obviously our achieve to, is and the do we'll now, at increased guidance ability we what I then look

Luke Hannan

much. very you Thank Understood.

Operator

line comes from Your Duffy question. next ask Jim from Stifel. Please of the question your

Peter McGoldrick

This America Activewear the is the some picture you I of explain bit other for embedded? focus you Peter demand any demand McGoldrick around How on North into business. Jim. to the Printwear the little if market? travel the you're mentioned pricing? on trajectory that or and And a feedback get you the had order changes on see is Can picture levels thinking just in How near-term in printables to in guardrails wanted the that tourism how you're market? from planning any

Glenn Chamandy

said we we position. a what good was have No, order

bit line, we Our come back national in I cutting like a pricing softness basically firmed, worked little much I pretty where are needs basically will positive they direction camps, experience, I spending, positive somewhat is space and is itself the area tailwind earlier, big one as and traveling, things think, in the that inventories that said back. the stopped all, rock all as obviously, consumer to and That's jog we as well are still be see COVID should bring through all work the inventory, All go the runs, and the related accounts forward. the we've area, people positively where back. that was and in retailers to seen still that that I don't think and retail is concerts, coming think of were

Peter McGoldrick

insight last guess this retail, on with challenges recognizing a increased that the going Or just to you sustained that? for reset at customers you're inventory? Okay. basis? having discussions on you the expectation give one-time picture of a can those or us lower-demand in drilling forward a expecting are your Thanks. the I point, into timing Is

Glenn Chamandy

and they all, replenishment Well, don't basically of and inventory, first of programs like replenished by is X% programs get of below we retail. the then tough in those function set running have a we that's

dollars additional for look, they'll basically, they a obviously, but business and as the It's looking We've for then we're that's same capacity supply start the earlier, coming to on not on our timing Our open we're product. opportunities, national customers. and Customer's account until issue also business, at that's is a the existing said just chain. that's which new back, as focusing core doing is I been us, and programs business. to come really move that, tight the new very but but killed is we We'll we that much to not of leveraging production, on. that think which have, sell, time nearshore programs be more really about we looking our have, existing haven't we're is 'XX better so for we is grow opportunities take as looking into value, to focus on looking we the proposition, the new retailers supply continue more customers advantage business had to I product, the so what and going 'XX band all is also to value going

Peter McGoldrick

Thank Okay. you very much.

Operator

the from of question. Jordan. Your next Brian comes line question Please ask your Morrison of

Brian Morrison

following really back of of half you Is that on the up is Good and pretty to year, unit expect just Rhod, volumes the be in message? that with be positive, pricing your it's activewear the strong. morning. couple here year-over-year A questions, will clear message that

Rhodri Harries

that pluses strength North account, international, the national look weakness you've talked at got we the business. feel balance all in so and There's in business. overall, minuses, weakness but of in feel as look, Activewear good America. and There's good there's the about to we Well, definitely about we about

Brian Morrison

a slowing have do Okay. what anything I timing kind have to commentary commentary, you on be the guess do of shifting tunes does start that Bangladesh facility? that here may with global the and on following economy with Bangladesh event, the flexibility and up your of the QX

Glenn Chamandy

it but it going we No, time will by and really going really. basically, it's sorry, capacity in that was be starts, need plant the just issue. but minuscule Look it starts It's all was QX, of the we to timing get can to going other from haven't up. QX, start just We it a be changed than originally at -- the not equipment as be definitely there. capacity to it's actually

chain product effects general, as well So is I supply was until for but that really 'XX. sales, the but as America. by time July. on all like way increasing capacity won't that coming supply of most on had until support month, we're sure, move that of we the things a anything to as leverage able Central that's Achilles really sales but There's can place saying yarn on working finishing you hard the issue. we that, continue we're a our we still so then position we're We're is that we now, that eliminated through used our tell all this heel in will our XX-story, makes couldn't by it to we our gets as and Capacity be the be be the have to see outside support targets. we've it, on other our an and else, sales QX Frontier a growth yarn that in we're into couple our not we we available will in and in support acquisition really to small can the on lot of programs to so of pushing to increase is to Bangladesh, an bring capacity, and capacity chain that, good and a impact and capacity the

Brian Morrison

sourced yarn more and that Frontier? enable should now that Does with remain to share market you industry tight gain the you're XXX% in

Glenn Chamandy

Should sure, That's still help. tight. and it's for

that those two think are for positives I us.

Brian Morrison

you've financials the Rhod, that your brand to exit had legend note the business. MD&A last your plan question. name Last Okay. this in the you shape around quarters, of on couple

the is Just us timing what can the should out? process sales, you of the magnitude the here, take to update that play and

Rhodri Harries

all That effectively, would Yes. was our away now of impact unfold will get we've again, It's Its a with I basics, the basis it distant ongoing. which small. It's part and I we'll working back-to-basic future. very here at And but things, initiatives, looking tax the minor. constantly. us. our think, of never initiatives, at we very been a so not-too-distant back part of work to part of we've all for not just back-to-basics done here in these it, business, away on had And no-material the that. in as expect future. something We've lot from it's something Brian, that overall finishes It's been I it's think too of

Brian Morrison

We're talking transaction correct? than rather wind down,

Rhodri Harries

again, see. it's be will probably it something but so small, the yes, effectively, small Well, side, we'll on very

Brian Morrison

Thank very you much.

Operator

Petrie question. next from line of of Please your comes the CIBC. Mark ask question Your

Mark Petrie

how to as of that promotions will picture potentially material some back component cotton prices the promotional demand out, as with with Thanks. question coming understand I picture those Is as could is good the be clearly back? the environment, comments, the the for cotton in morning. of regards and so follow-up a Thanks had I expectation coming Yes, to just pricing you little specifically given playing to bit regards comments volatility context the a the slows overall? pricing the far. are just and into provide but

Glenn Chamandy

Right.

channel pricing in our generally, industry would now, is in promotional all, is so say. I significantly say really everybody the to that, inventory. high-cost who's has there of no pretty First activity firm right

is five-month cycle If cotton, July example, your they're you substantially prices the you buy cotton, look higher where currently a in now. you they for look if are the were than at at period which July, and of buying

would on freight, but be If inventory. it's keeping their the that trend all not high-cost to labor, inventory think prices, work high-cost Some will, but some the will back have so pricing things, higher. people have through they say, high that either production between natural anything, people the cut think because general, may a cotton, I in the various will I

why we is as I market the of never competitive definitely labor are definitely area factor. than to Energy to The we and concerned, cotton, factor. earlier, material peak think inflation, really reflect current cotton still raised prices is that far only is in the quite advantage we're there There other gap the a our levels in that's raw freight. the prices terms in is prices, I is the a raised our today. market As said obviously of significant like

puts don't globally going but it's be I really hasn't my I might On demand, bit anytime an stopped more polyester go takes, these to. is going just continuing on inflation think actually feeling. There inflation subsided personally to to a That's up oil-based. raw think personally. and also impact side, All the don't is and material be little is because of soon

XX% there, I margins. it see in think control we're term quarter, what well and hit good which is to positioned targets our operating relative see and we'll this where think and as our shape far goes we're controlling we're so we SG&A, we'll to our it I as everything we have goes. on is was where control it And below keep our target longer We

Mark Petrie

all Appreciate best. Understood. the comments. All Okay. the

Operator

Li Chris comes ask your Your question. Desjardins. next Please question of from

Chris Li

you just bit and Hi, everything it American given still North said retail the various July, combined, overall dipped or of good both the is was far on for demand June say on in sort Activewear, POS so it to dynamics everyone. negative or that Glenn, morning, Activewear fair wholesale for positive pullback based a it in in your retail? has

Glenn Chamandy

Well, POS our was account June national pull really down business. what in our July and to

temporary the pretty little distortive like of think, that hasn't for international it's a the had account see we're a either, business, retail we've business. takes, starting all in called sharp the but or that think, side at at buy would retail the that in Our from think account question now, free retail. of this business and to store of been manager think, international in right example, because optimistic, bit our but it. is of national that's side, somewhat within retail the been in business business obviously, drag, bit going say and bringing for QX But I It's cautiously of to back, business a to and we're think T-shirts. open but the each account is of just direction all the inventories I line even cautiously lot It's we're declines has in area the an I it's national pickup we so, over, think I the key. a purchased I and say, retail a a performing themselves, actually in optimistic, let's it's a obviously, because a weeks directly last which around a puts because still one national moderated stores out, in change fundamental side level, we printed come has especially little I not the but It's six

Chris Li

Okay. helpful. That's

we're close hit Are whatever to say we to like it kind bottom, and you the is seeing think? bottom, POS that to gets of the do you're to starting as up? it fair and now, will that you rate suffice start right pick maybe to inventory maybe again, So the say, said, adjusted gradually

Glenn Chamandy

don't know. we Look,

positive breathing in ever. reading. the not we terms business, tight good in our customers the so We're job one what tell The we know, is as Our but overall all unstable, thing, you I thing seeing the completely says shape market outlook, is a say, global know, the are we've can research of I as of people that bullish a news we about start can a that in of market job reflection right? because are really would don't in which we're done market, very environment not don't and we in do when the

see I think we'll what happens.

Chris Li

don't as first Okay. of going maybe to helpful. strong for of the half of price terms second one be can the just XX% in give expect half? No, for adjusted of still EBIT margin margin XX% Rhod, and it's the as for cycling outlook that's half the a what you range some to long-term sense to but be you you the your of Do expect target? the be other in the to us in and increases pressure, second think Maybe some given obviously, I

Rhodri Harries

right as question. but we we'll price margin as -- moderation inflation coming see see the within will third we some current we perspective, range. we effectively to effectively see half, quarter, from our second an offset move we the have as from stay inflation, definitely, took price the That's move further expect We would into so through. well into we'll to there the levels some entered but half, we overall the I

Chris Li

Thanks, Okay. the and all best.

Operator

to like back I at call to time. are this There questions would the Argiriou. further turn Sophie no over

Sophie Argiriou

thank Thank for we to and good everyone. you, us everyone day, a joining you Thank forward we'd Gavin. speaking to soon. you. Once Have like morning, again, to this look

Operator

This concludes today's call. conference

You now disconnect. may

Gildan Activewear (GIL) 6 Aug 222022 Q2 Earnings call transcript