By Adriano Marchese

Gildan Activewear shares rose Wednesday after the company stood by its full-year guidance, brushing off investor jitters over tariffs and a potential slowdown on consumer demand.

Shares traded 7.4% higher at 63.68 Canadian dollars ($46.03).

The Canadian apparel manufacturer reiterated its full-year outlook, calling for mid-single-digit revenue growth and adjusted per-share earnings of $3.38 to $3.58.

Analysts polled by FactSet expect sales of $3.41 billion, representing a 4.4% increase from last year, and adjusted earnings of $3.44 a share.

The company said its guidance factors in the impact of tariffs, a theme that has weighed on investor sentiment since President Trump announced sweeping levy plans that ignited trade fears.

"Investor concern on the impact of tariffs and a potential impact of slowing economy on consumer demand have pressured the stock 23% from its February peak," said TD Cowen analyst Brian Morrison.

Morrison said that Gildan is better positioned than peers to weather inflationary and trade-related headwinds, adding that the company's manufacturing agility could help it gain share.

The competitive edge comes largely from largely its diverse manufacturing operations, as well as the vertical integration and sourcing of U.S. cotton and yarn, and agility of its manufacturing hubs based in different markets.

"We believe tariffs impact the cost structure of peers more significantly than Gildan, in turn widening its cost advantage," Morrison said.

In the company's first quarter ended March 30, profit came in at $84.7 million, or 56 cents a share, up from $78.7 million, or 47 cents a share, in last year's comparable quarter.

Adjusted per-share earnings came in at 59 cents, topping the 57 cents that analysts projected.

Revenue increased 2.3% to $711.7 million, in line with analyst models.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 30, 2025 10:21 ET (14:21 GMT)

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