Gildan Activewear Inc (GIL) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the Q2 2024 Gildan Activewear earnings conference call. Please be advised that today's conference is being recorded. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎參加 2024 年第二季 Gildan Activewear 收益電話會議。請注意，今天的會議正在錄製中。（操作員說明）

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

現在我想將會議交給副總裁兼投資者關係主管傑西·海耶姆 (Jesse Hayem)。請繼續。

Thank you, Jeannie. Good morning, everyone. Earlier we issued a press release announcing our results for the second quarter of 2024, along with our interim shareholder report containing management's discussion and analysis as well as consolidated financial statements. These documents are expected to be filed with the Canadian Securities and Regulatory Authorities and the US Securities Commission today, and they'll also be available on our corporate website.

謝謝你，珍妮。大家早安。早些時候，我們發布了一份新聞稿，宣布了 2024 年第二季的業績，以及包含管理層討論和分析以及合併財務報表的中期股東報告。這些文件預計將於今天提交給加拿大證券和監管機構以及美國證券委員會，並且也將在我們的公司網站上提供。

Joining me on the call today are Glenn Chamandy, President and CEO of Gildan; Rhod Harries, Executive Vice President and Chief Financial and Administrative Officer; and Chuck Ward, President, Sales, Marketing, and Distribution. This morning, we'll take you through the results for the quarter and then a question-and-answer session will follow.

今天和我一起參加電話會議的是 Gildan 總裁兼執行長 Glenn Chamandy；羅德‧哈里斯 (Rhod Harries)，執行副總裁兼財務與行政官；查克·沃德 (Chuck Ward)，銷售、行銷和分銷總裁。今天早上，我們將向您介紹本季度的結果，然後將進行問答環節。

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.

在我們開始之前，請注意，本次電話會議中包含的某些陳述可能構成前瞻性陳述，其中涉及未知和已知的風險、不確定性以及其他因素，這些因素可能導致實際結果與此類陳述所表達或暗示的未來結果有重大差異。

We refer you to the company's filings with the US 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.

我們建議您參閱該公司向美國證券交易委員會和加拿大證券監管機構提交的文件。在本次電話會議中，我們也將討論某些非公認會計準則財務指標。今天的收益發布以及我們的 MD&A 中提供了與最直接可比較的 IFRS 指標的調節。

And now, I'm very happy to turn the call over to Glenn.

現在，我很高興將電話轉給格倫。

Well, thank you, Jessy, and good morning, everybody. First, I'd like to take a moment to sincerely thank all of our employees, shareholders, and customers and our new Board of Directors for their incredible support to the company and to myself personally over the past several months. I'm very proud to be here today celebrating Gildan's 40th anniversary with our dedicated team.

好吧，謝謝你，傑西，大家早安。首先，我想花點時間真誠地感謝我們所有的員工、股東、客戶以及我們的新董事會在過去幾個月對公司和我個人的大力支持。我非常自豪今天能與我們敬業的團隊一起慶祝 Gildan 成立 40 週年。

Last fall, I communicated to shareholders that Gildan's positioning had never been stronger with the largest pipeline of innovation in the company's history rolling out this year. Today, I can confirm that everything is on track and we're continuing to widen our competitive advantage. We continue to execute on Gildan's sustainable growth strategy. We're delivering on each of our three pillars where we've seen significant progress to date.

去年秋天，我向股東表示，隨著今年推出公司史上最大規模的創新管道，Gildan 的定位從未如此強大。今天，我可以確認一切都步入正軌，我們正在繼續擴大我們的競爭優勢。我們繼續執行 Gildan 的可持續成長策略。我們正在實現三大支柱中的每一個，迄今為止我們已經取得了重大進展。

On capacity growth, our Bangladesh ramp-up is on track. We'll be at 75% exit capacity at the end of this year. On innovation, our soft cotton technology is performing well, where we're starting to see good results in market -- in the market with positive POS on basics in Q2. On ESG, we just launched our 20th anniversary ESG report, focusing on our accomplishments of which we're very proud of.

在產能成長方面，我們在孟加拉的產能擴張已步入正軌。到今年年底，我們的退出能力將達到 75%。在創新方面，我們的軟棉技術表現良好，我們開始在市場上看到良好​​的結果——在第二季基本面的市場表現良好。在 ESG 方面，我們剛剛發布了 20 週年 ESG 報告，重點介紹了我們引以為傲的成就。

We reported Q2 results that were strong and in line with our expectations with solid top line and strong adjusted operating margins. We also announced in our press release that we're reconfirming our full-year 2024 guidance, and we're providing our three-year outlook. We're capitalizing on our GSG strategy where we're well positioned to deliver top-line growth in the mid-single-digit range, adjusted diluted EPS growth in the mid-teen range over 2025 through 2027 period, in line with our supercharge plan.

我們報告的第二季業績強勁，符合我們的預期，營收穩定，調整後的營業利潤率強勁。我們也在新聞稿中宣布，我們將重新確認 2024 年全年指引，並提供三年展望。我們正在利用我們的GSG 策略，在該策略中，我們處於有利地位，可以在2025 年至2027 年期間實現中個位數範圍內的營收成長，調整後的攤薄後每股收益增長在中雙位數範圍內，這與我們的增壓一致計劃。

I'm looking forward to answering your questions after Rhod's formal remarks. And thank you, again.

我期待在羅德正式講話後回答大家的問題。再次感謝您。

Thank you, Glenn, and good morning, everyone. And thank you for joining us today to discuss our second-quarter results. I'll start by going over the specifics of the quarter. I'll talk briefly about our new NCIB program, and then I will comment on our outlook and guidance for 2024 before recapping our outlook for the 2025 to 2027 period.

謝謝格倫，大家早安。感謝您今天加入我們討論我們的第二季業績。我將首先回顧本季的具體情況。我將簡要介紹我們的新 NCIB 計劃，然後我將評論我們對 2024 年的展望和指導，然後回顧我們對 2025 年至 2027 年期間的展望。

So let's get started. As Glenn mentioned in his remarks, the quarter unfolded largely as we anticipated. We reported sales of $862 million, up $22 million or 3% at the higher end of our guidance for the quarter of flat to low-single-digit growth. If we exclude the impact of the phase-out of Under Armour, net sales for the quarter are up mid-single digits year over year.

那麼就讓我們開始吧。正如格倫在演講中提到的那樣，本季的發展基本上符合我們的預期。我們報告的銷售額為 8.62 億美元，比我們對本季持平至低個位數成長的指導上限增加了 2,200 萬美元，即 3%。如果我們排除淘汰 Under Armour 的影響，該季度的淨銷售額將比去年同期成長中個位數。

This was driven by a strong performance in activewear, up $45 million or 6%, where we saw increased activewear shipments, reflecting positive POS trends across all channels and geographies as well as favorable mix, which was driven by higher replenishment of fleece by North American distributors ahead of our peak selling season.

這是由運動服的強勁表現推動的，增長了4500 萬美元或6%，其中我們看到運動服出貨量增加，反映出所有渠道和地區的積極POS 趨勢以及有利的組合，這是由北美羊毛補貨增加推動的經銷商在我們的銷售旺季之前。

Strong activewear sales in the quarter were further reinforced by continued market share gains in fleece and ring spun products, which are key growth categories. We were also pleased to see a positive market response to products that we recently introduced, which feature key innovations such as our soft cotton technology.

抓絨和環錠紡產品市場份額的持續成長進一步鞏固了本季強勁的運動服銷售，這兩個產品是關鍵的成長類別。我們也很高興看到我們最近推出的產品獲得了積極的市場反應，這些產品採用了我們的軟棉技術等關鍵創新技術。

Finally, in international markets, we performed well in the quarter with sales up by 7%.

最後，在國際市場，我們本季表現良好，銷售額成長了 7%。

Turning to hosiery and underwear, as expected, this category was down 16% versus the prior year, mainly owing to the phase-out of the Under Armour business, and to a lesser extent, to unfavorable mix and continued broader market weakness in innerwear. That said, if we were to exclude the impact of the Under Armour phase out, our hosiery and underwear sales would have been up mid-single digits year over year.

至於襪類和內衣，正如預期的那樣，該品類比上一年下降了 16%，這主要是由於 Under Armour 業務的逐步淘汰，其次是由於不利的組合以及內衣市場的持續疲軟。也就是說，如果我們排除 Under Armour 逐步淘汰的影響，我們的襪子和內衣銷售額將比去年同期成長中個位數。

Turning our focus to margins for the quarter, our gross margin was 30.4% versus 25.8% in the prior year, a 460 basis point improvement primarily due as anticipated to lower raw material and manufacturing input costs.

將我們的注意力轉向本季度的利潤率，我們的毛利率為 30.4%，而上一年為 25.8%，提高了 460 個基點，這主要是由於原材料和製造投入成本的降低而預期。

Moving to SG&A, expenses were $124 million in the quarter and included significant charges related to the proxy contest and related matters, which totaled $57 million in the quarter. These charges are detailed fully in our press release and our MD&A and impact for GAAP numbers.

SG&A 方面，本季支出為 1.24 億美元，其中包括與代理權爭奪及相關事宜相關的巨額費用，本季總計 5,700 萬美元。這些費用在我們的新聞稿、MD&A 以及對 GAAP 數據的影響中進行了詳細說明。

Excluding these charges, adjusted SG&A expenses were down 15% to $66 million or 7.7% of net sales versus 9.3% for the same period last year. The reduction reflected the significant positive benefit of the jobs credit introduced by Barbados as part of their economic policies, which was retroactive to January 1, 2024, and which totaled $17 million in the quarter.

排除這些費用，調整後的銷售、管理及行政費用下降 15%，至 6,600 萬美元，佔淨銷售額的 7.7%，而去年同期為 9.3%。這項減少反映了巴貝多作為其經濟政策的一部分引入的就業信貸的顯著積極效益，該政策可追溯至 2024 年 1 月 1 日，本季總額為 1,700 萬美元。

Note that SG&A would have been approximately 9% of sales -- of net sales, if we had reflected the benefit of the jobs credit only for the second quarter as opposed to a retroactive impact. Putting these elements together and adjusting for proxy contest matters, we generated an operating margin of 22.7%, up 620 basis points compared to the prior year, coming in above the high end of our 18% to 20% target range and in line with our previously provided guidance.

請注意，如果我們僅反映第二季就業信貸的好處而不是追溯影響，那麼 SG&A 大約佔銷售額（淨銷售額）的 9%。將這些要素放在一起，並根據代理競爭問題進行調整，我們的營業利潤率為22.7%，比上年增長620 個基點，高於我們18% 至20% 目標範圍的上限，並且符合我們的目標範圍。

With the retroactive enactment of global minimum tax in Canada and Barbados, income tax expenses increased significantly year over year in the second quarter. In fact, the company's adjusted effective income tax rate for the quarter was 27% compared to 4.8% last year, bringing the year-to-date adjusted tax rate to approximately 18% in line with our expectations.

隨著加拿大和巴貝多追溯實施全球最低稅，第二季所得稅支出較去年同期大幅成長。事實上，該公司本季調整後有效所得稅率為 27%，去年為 4.8%，使年初至今調整後稅率達到約 18%，符合我們的預期。

Reflecting higher net financial and income tax expenses and our lower outstanding share base, we reported GAAP EPS of $0.35. Adjusting for the charges related to the proxy contest matters, second-quarter adjusted earnings per share were $0.74 versus $0.63 in the prior year, a 17% increase.

我們報告的 GAAP 每股收益為 0.35 美元，反映出較高的淨財務和所得稅費用以及較低的流通股基礎。在調整與代理權爭奪事宜相關的費用後，第二季調整後每股收益為 0.74 美元，而去年同期為 0.63 美元，成長 17%。

Moving on to cash flow and balance sheet items. After absorbing a cash impact of $40 million from the proxy contest, cash flow from operating activities was $140 million compared to $182 million in the prior year, which included the net positive effect of a $74 million insurance gain. After CapEx of $36 million, company generated free cash flow of approximately $104 million in the second quarter.

接下來討論現金流量和資產負債表項目。在吸收了代理權競爭帶來的 4,000 萬美元現金影響後，經營活動產生的現金流量為 1.4 億美元，而前一年為 1.82 億美元，其中包括 7,400 萬美元保險收益的淨正面影響。在扣除 3,600 萬美元的資本支出後，該公司第二季產生了約 1.04 億美元的自由現金流。

Finally, reflecting our strong commitment to returning capital to shareholders, we resumed share repurchases in the final month of the quarter, repurchasing approximately 3 million shares and returning $182 million in capital to shareholders in the second quarter, including dividends.

最後，為了體現我們對向股東返還資本的堅定承諾，我們在本季度最後一個月恢復了股票回購，回購了約300 萬股股票，並在第二季度向股東返還了1.82 億美元資本，包括股息。

With the current NCIB program approaching expiry this month, our Board of Directors approved a new program to repurchase up to 10% of the company's public float over the next 12 months. We ended the quarter with net debt of $1.24 billion and a net debt to EBITDA leverage ratio of 1.6 times.

隨著目前的 NCIB 計劃本月即將到期，我們的董事會批准了一項新計劃，在未來 12 個月內回購最多 10% 的公司公眾持股。本季結束時，我們的淨負債為 12.4 億美元，淨負債與 EBITDA 的槓桿率為 1.6 倍。

Turning to our strategy and outlook, as Glenn mentioned earlier, we continue to progress on the three pillars of our GSG strategy, which includes capacity-driven growth, innovation, and ESG. On the first pillar, we're very pleased with the progressive ramp-up of our new manufacturing complex in Bangladesh, which is ramping up fully as planned.

談到我們的策略和前景，正如格倫之前提到的，我們繼續在 GSG 策略的三大支柱上取得進展，其中包括能力驅動的成長、創新和 ESG。在第一個支柱上，我們對孟加拉國新製造基地的逐步擴建感到非常滿意，該綜合設施正在按計劃全面擴建。

On the innovation front, thanks to proprietary cotton technology, we continue to improve fabric softness, all while improving printability. We have announced the release of numerous new products incorporating this and other technologies across various product lines and the reception has been positive.

在創新方面，由於專有的棉技術，我們不斷提高織物的柔軟度，同時提高印刷適性。我們已經宣布發布了許多新產品，這些新產品在各個產品線中融入了這項技術和其他技術，並且反應積極。

Touching briefly on ESG, we're proud of our 20th ESG report issued mid-June, which highlights Gildan's continued progress against key targets two years into the implementation of our next generation ESG strategy. In this regard, we're also proud of the recognition that we've recently received. In fact, for the third consecutive year, we were recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights. And we're the only company in the textiles and clothing manufacturing peer group to have received this recognition.

簡單談談 ESG，我們對 6 月中旬發布的第 20 份 ESG 報告感到自豪，該報告強調了 Gildan 在實施下一代 ESG 戰略兩年來在實現關鍵目標方面的持續進展。在這方面，我們也為最近獲得的認可感到自豪。事實上，我們已連續第三年被 Corporate Knights 評為加拿大最佳 50 家企業公民之一。我們是紡織品和服裝製造同行中唯一獲得此認可的公司。

Furthermore, Gildan was one of only 12 Canadian companies to be included in the recent inaugural edition of Times World's Most Sustainable Companies. So all in all, a strong recognition for the important work we are doing on the ESG front for all stakeholders.

此外，Gildan 是入選最近首屆《泰晤士報全球最具永續發展公司》的 12 家加拿大公司之一。總而言之，我們對所有利害關係人在 ESG 方面所做的重要工作表示強烈認可。

So this brings us to our 2024 outlook. While we are encouraged by the positive demand trends for our products in all our channels in the first half of 2024, the macroeconomic backdrop remains mixed globally, driving a generally cautious consumer spending outlook. Nonetheless, we are reiterating our previously provided 2024 guidance, underscoring our confidence in our continued execution against our GSG strategy.

這就是我們對 2024 年的展望。儘管我們對 2024 年上半年所有管道對我們產品的積極需求趨勢感到鼓舞，但全球宏觀經濟背景仍然複雜，導致消費者支出前景普遍謹慎。儘管如此，我們重申先前提供的 2024 年指導，強調我們對繼續執行 GSG 策略的信心。

So recapping our guidance for 2024, we still expect revenue growth for the full year to be flat to up low-single digits, noting that if we were to exclude the impact of the Under Armour license agreement, 2024 full-year revenue growth would be in the low- to mid-single digit range. We continue to expect adjusted operating margin to be slightly above the high end of our 18% to 20% target range for 2024. This takes into account the benefit of the refundable jobs credit recently introduced by Barbados, as described earlier, which will reduce our SG&A in 2024.

因此，回顧我們對 2024 年的指導，我們仍然預計全年營收成長將持平至低個位數，並指出，如果我們排除 Under Armour 授權協議的影響，2024 年全年營收成長將在低到中個位數範圍內。我們仍預期調整後的營業利潤率將略高於 2024 年 18% 至 20% 目標範圍的上限。這考慮到了巴貝多最近推出的可退還就業信貸的好處（如前所述），這將減少我們 2024 年的銷售及管理費用。

We've also incorporated the estimated impact of the recently enacted GMT legislation in Canada and Barbados on our effective tax rate, retroactive to January 1, 2024. The company's adjusted effective income tax rate is expected to be approximately 18% for the full year. Our adjusted diluted EPS is expected to be in the range of $2.92 to $3.7, up significantly between 13.5% and 18.5% year over year.

我們也納入了加拿大和巴貝多最近頒布的 GMT 立法對我們有效稅率的估計影響，追溯至 2024 年 1 月 1 日。公司調整後的全年實際所得稅稅率預計約為18%。我們調整後的稀釋後每股盈餘預計在 2.92 美元至 3.7 美元之間，年減 13.5% 至 18.5%。

We expect CapEx to come in at approximately 5% of sales. And even after absorbing the cash impact for the proxy contest and related matters, we still expect free cash flow to be above 2023 levels. Finally, given the strength of our balance sheet, our expected strong free cash flow and the renewed NCIB program, we plan to continue share repurchases in the second half of 2024 with a revised leverage framework of 1.5 to 2.5 times net debt to adjusted EBITDA.

我們預計資本支出將佔銷售額的 5% 左右。即使在吸收了代理權爭奪和相關事項的現金影響後，我們仍然預期自由現金流將高於 2023 年的水準。最後，考慮到我們的資產負債表實力、預期強勁的自由現金流以及更新的NCIB 計劃，我們計劃在2024 年下半年繼續進行股票回購，並將槓桿框架修改為調整後EBITDA 淨債務的1.5 至2.5 倍。

Now providing some color on our expectations for Q3, net sales are expected to be flat to up low-single digits year over year, and adjusted operating margin is expected to come in above the high end of our 18% to 20% target range for 2024 after reflecting the positive benefit of the refundable jobs credits.

現在為我們對第三季的預期提供了一些依據，淨銷售額預計將同比持平至低個位數，調整後的營業利潤率預計將高於我們 18% 至 20% 目標範圍的上限。退還就業積分的正面效益後，到2024 年。

As Glenn mentioned earlier today, we are also providing our three-year outlook for the 2025 to 2027 period. And we expect the following: net sales growth at a compound annual growth rate in the mid-single-digit range, annual adjusted operating margin to further improve over the three-year period as compared to 2024, CapEx as a percentage of sales of about 5% per year on average to support long-term growth and vertical integration. We expect to continue our share repurchases in line with a leverage framework of 1.5 to 2.5 times, and we expect adjusted diluted EPS growth at a compound annual growth rate in the mid-teen range.

正如格倫今天早些時候提到的，我們還提供了 2025 年至 2027 年的三年展望。我們預期：淨銷售額複合年增長率將在中個位數範圍內，與 2024 年相比，三年內調整後的年度營業利潤率將進一步提高，資本支出佔銷售額的百分比約為平均每年5 %，以支持長期成長和垂直整合。我們預計將繼續按照 1.5 至 2.5 倍的槓桿框架進行股票回購，並且我們預計調整後的攤薄每股收益將以中位數的複合年增長率增長。

Assuming no deterioration in the current macroeconomic environment, we're confident that our targeted priorities will position the company to continue to drive market share gains in key product categories and unlock further opportunities and target markets. As such, as we further capitalize on the GSG strategy and pursue our disciplined approach to returning capital to shareholders, we believe that the company is well positioned to deliver strong value for shareholders over the long term.

假設當前宏觀經濟環境沒有惡化，我們相信我們的目標優先事項將使公司能夠繼續推動關鍵產品類別的市場份額成長，並釋放更多機會和目標市場。因此，隨著我們進一步利用 GS​​M 策略並奉行嚴格的方法向股東返還資本，我們相信公司處於有利位置，能夠長期為股東創造強大的價值。

So that's all I wanted to cover from a financial perspective. While we acknowledge that there is a lot going on with our numbers this quarter, with the phase of the Under Armour license, the retroactive impact of the global minimum tax and jobs credits, and unfortunately, the impact of significant proxy related costs, we are overall pleased with our results and enthusiastic about our outlook. In short, we believe that our cost structure remains well under control. Our balance sheet is strong, and we are encouraged by our performance relative to peers as we continue to gain market share in a somewhat mixed environment.

這就是我想從財務角度討論的全部內容。雖然我們承認本季的數據發生了許多變化，包括 Under Armour 許可的階段、全球最低稅收和就業抵免的追溯影響，以及不幸的是，大量代理相關成本的影響，但我們仍然總體而言，我們對我們的成果感到滿意，並對我們的前景充滿熱情。簡而言之，我們相信我們的成本結構仍然受到良好控制。我們的資產負債表強勁，隨著我們在複雜的環境中繼續獲得市場份額，我們相對於同業的表現令我們感到鼓舞。

So in closing, we want to thank you all for joining us today and for your patience and support during the last several months. We are proud to say that our team has remained very engaged, staying focused on our key pillars and working diligently to create long-term shareholder value.

最後，我們要感謝大家今天加入我們，以及過去幾個月的耐心與支持。我們很自豪地說，我們的團隊仍然非常投入，專注於我們的關鍵支柱，並努力創造長期股東價值。

And with that, I will now turn it back over to Jessey.

現在，我將把它轉回給傑西。

Thank you, Rhod. This concludes our prepared remarks, and now we'll be taking your questions. (Event Instructions) Jeannie, you may begin the Q&A session, please.

謝謝你，羅德。我們準備好的發言到此結束，現在我們將回答你們的問題。（活動說明）Jeannie，請開始問答環節。

(Operator Instructions) Paul Lejuez, Citi.

（操作員指示）Paul Lejuez，花旗銀行。

Hey. Thanks, guys. Curious if you could talk about where you saw the strongest and weakest POS trends during the quarter and what POS has looked like in the third quarter to date? Curious if you've seen any changes that are influencing your outlook?

嘿。謝謝，夥計們。想知道您能否談談本季最強和最弱的 POS 趨勢以及第三季迄今為止 POS 的情況嗎？想知道您是否看到任何影響您的觀點的變化？

And then second, can you just talk about the competitive landscape in both activewear and hosiery? You've got some weak competitors out there, I think, you would say. And I'm curious how that might be impacting the pricing environment, if at all.

其次，您能談談運動服和襪子領域的競爭格局嗎？我想，你會說，你有一些弱小的競爭對手。我很好奇這會如何影響定價環境（如果有的話）。

Okay. Well, why don't we start off with the competitive landscape, and then maybe Chuck can cover the POS. Look, I mean, we're continuing to strive and invest and innovate in our market. And look, we're developing a competitive advantage. We've widened the gap, we think, against a lot of our competitors.

好的。好吧，我們為什麼不從競爭格局開始，然後查克也許可以覆蓋 POS。我的意思是，我們正在繼續努力、投資和創新我們的市場。看，我們正在發展競爭優勢。我們認為，我們已經擴大了與許多競爭對手的差距。

You can see some of our competitors have -- you know, Delta has actually filed for Chapter 11. And we think other companies in the industry are not doing well as well. So we're very optimistic that that's an opportunity for us to continue to execute, particularly in the areas with growth, which is the fashion T-shirt category and fleece where we have a dominant position.

您可以看到我們的一些競爭對手 - 您知道，達美航空實際上已經申請了第 11 章。我們認為該行業的其他公司表現不佳。因此，我們非常樂觀，認為這是我們繼續執行的機會，特別是在成長領域，即我們佔據主導地位的時尚 T 卹類別和羊毛衫類別。

So we're very excited. And we think that the landscape is weak and we're keeping widen the gap on our competitive positioning.

所以我們非常興奮。我們認為情況很弱，我們正在不斷擴大我們的競爭地位差距。

And Paul, regarding the POS, I mean, as we progress through the quarter, we saw improving POS through the quarter, overall. With June ending mid-single digits -- first part of July started off a little slower, but it's improved as we've gone through the month, to where we're ending July kind of flat to slightly down. But overall, the strength continues to be in the fleece and ring spun categories, where we're doing very well. And we're taking share.

Paul，關於 POS，我的意思是，隨著本季的進展，我們看到整個季度的 POS 整體有所改善。隨著 6 月結束於個位數中間——7 月上旬開始時稍慢一些，但隨著整個月的過去，情況有所改善，到 7 月結束時持平或略有下降。但總體而言，起絨和環錠紡類別的優勢仍然存在，我們在這方面做得非常好。我們正在分享。

If you look at the market overall, the market was down a bit, but we were up. So we're continuing to see strength in our fleece and ring spun categories. And then overall, on the on the retail side, I would say the underwear market has been kind of mixed overall. But again, we think we're continuing to perform well there.

如果你看一下整個市場，市場有點下跌，但我們上漲了。因此，我們繼續看到羊毛和環錠紡類別的優勢。總的來說，在零售方面，我想說內衣市場總體上是好壞參半。但我們再次認為我們在那裡繼續表現良好。

Then on the international front, we're actually seeing great improvement on the international side with international up high-single digits. Kind of still some mix between the UK and Continental Europe with Continental Europe being higher, but overall, good positive growth there in international markets.

然後在國際方面，我們實際上看到了國際方面的巨大進步，國際成長了高個位數。英國和歐洲大陸之間仍然存在一些混合，歐洲大陸的價格較高，但總體而言，國際市場出現良好的正成長。

Got it. Have you seen a change in the pricing environment with the Delta situation? Are you doing anything different to take advantage of market share?

知道了。您是否看到定價環境因達美航空的情況而改變？您是否正在做一些不同的事情來利用市場份額？

Look, I mean, early in the season, obviously, they were liquidating a lot of inventories, so it put a little bit of price pressure, particularly in our national account segment. But that inventory has dried up pretty quickly. And, you know, as we go forward, that would be an upside in terms of stabilization in that segment. And also, look, the Delta's revenues in this segment were roughly around close to $400 million and that's an opportunity for us as we move into next year. And we continue to focus on driving our national account business, which is where they had, I think, their largest sales penetration.

看，我的意思是，在本季初期，顯然他們正在清算大量庫存，因此這帶來了一點價格壓力，特別是在我們的國民帳戶部分。但庫存很快就枯竭了。而且，你知道，隨著我們的前進，這對該領域的穩定來說將是一個好處。而且，看，達美航空在這一領域的收入大約接近 4 億美元，這對我們來說是一個機會，因為我們進入了明年。我們繼續專注於推動我們的國民帳戶業務，我認為這是他們銷售滲透率最大的領域。

Got it. Great. Thank you.

知道了。偉大的。謝謝。

And then just -- and sorry, just one last point. And pricing is stable in the market.

然後，抱歉，還有最後一點。且市場定價穩定。

Mark Petrie, CIBC.

馬克·皮特里，CIBC。

Yeah, thanks. Good morning. I wanted to just follow-up on the comment with regards to fleece. You called outgrowth, but then Chuck, I think you were saying that the category was softer. Could you just clarify that? And when it comes to Gildan's performance specifically, how much of that would be market share gains versus the restocking that you called out?

是的，謝謝。早安.我想跟進有關羊毛的評論。你稱之為“副產品”，但查克，我想你是說這個類別比較軟。你能澄清一下嗎？具體到吉爾丹的業績時，與您呼籲的補貨相比，市場份額的增長有多少？

Well, maybe just to start with is that we think that the overall market was down probably around mid-single digits basically for the quarter. And what Chuck alluded to is like we've done really well, really, because if you look at our POS in Q2, it started off slow, but in June, we had positive 4% POS in a somewhat down market. So we're gaining share. And all of that share gain is coming out of fashion, basics, and fleece.

好吧，也許首先我們認為本季整體市場的下跌幅度可能在個位數左右。Chuck 提到我們做得非常好，真的，因為如果你看看我們第二季的POS，它一開始很慢，但在6 月份，我們在市場有所下滑的情況下實現了4% 的正POS。所以我們正在獲得份額。所有這些份額的成長都來自時尚、基本款和羊毛。

So we are performing really well. We're taking share. The category is growing. We've seen very, very strong sales in fleece and we have a huge order book in fleece for Q3 and Q4 already. And we're well positioned to execute on our guidance for '24.

所以我們的表現非常好。我們正在分享。該類別正在不斷增長。我們看到羊毛的銷售非常非常強勁，我們已經在第三季和第四季擁有大量的羊毛訂單。我們已做好充分準備來執行 24 年的指導方針。

Okay. And could you comment specifically on the inventory levels, both retail and distributor? How would you characterize that versus something you would call normalized and that sort of an opportunity or a risk in the coming 6 to 12 months in your view?

好的。您能否具體評論一下零售和經銷商的庫存水準？您認為未來 6 到 12 個月內的機會或風險與您所謂的常態化的情況有何不同？

I would say, overall, inventory is in line and in balance. As we look at it, you have some accounts that are a little bit better stocked than others and others may be a little short. But overall, I would say, it's well in balance. That includes retail, distributors.

我想說，總體而言，庫存是合理且平衡的。正如我們所看到的，您的某些帳戶的庫存比其他帳戶多一點，而其他帳戶的庫存可能有點少。但總的來說，我想說的是，它非常平衡。這包括零售、分銷商。

On the international side, I would say, there's areas where it's a little light, but with the Bangladesh ramp up, both Glenn and Rhod talked about earlier, we should see that resolved in Q4 so that we're seeing better inventory positions in international by that point. So again, overall imbalance.

在國際方面，我想說，有些地區的情況有點清淡，但隨著格倫和羅德早些時候談到的孟加拉國的增加，我們應該看到這個問題在第四季度得到解決，以便我們看到國際市場的庫存狀況更好到那時。再次強調，整體失衡。

Okay. So not expecting inventory to be a positive or a negative other than the Bangladesh the impact of the Bangladesh ramp up giving you some opportunity in international?

好的。因此，除了孟加拉國之外，不要指望庫存會帶來積極或消極的影響，孟加拉國的影響增加會為您帶來一些國際機會嗎？

Yes, that's correct.

是的，這是正確的。

Brian Morrison, TD Cowen.

布萊恩·莫里森，TD·考恩。

Thank you. Good morning and [nice feedback in that share, Glenn.] Can you maybe just talk about the current capacity utilization at Bangladesh today? I realize it's going to be 75% at year-end, the impact from the recent civil unrest. Glenn, have you visited the site? And where are we with respect to moving forward with phase two?

謝謝。早安，[分享中的回饋很好，格倫。 ]您能否談談孟加拉目前的產能利用率？我意識到，受最近內亂的影響，到年底這一比例將達到 75%。格倫，你有造訪過該網站嗎？我們在第二階段的進展如何？

Okay. Well, I would say that, look, everything is on track with Bangladesh. And maybe just to take a step backwards and you look at Gildan's whole manufacturing system today, we have a lot of room for optimization and continued improvement. And one of the things I think that we've underwent a couple of years ago which is our yarn modernization plan, which is still being completed. So we fully haven't optimized our cost structure of all of our yarn facilities.

好的。嗯，我想說的是，看，孟加拉的一切都步入正軌。也許退一步看 Gildan 今天的整個製造系統，我們有很大的優化和持續改進的空間。我認為我們幾年前經歷的事情之一就是我們的紗線現代化計劃，該計劃仍在完成中。因此，我們還沒有完全優化所有紗線工廠的成本結構。

And another point of reference I think for us would be is that we pointed out that we're only running around 85% capacity. And that's also another big opportunity for the company as we move into the future where we continue to look at filling up our capacity with a much more optimized level.

我認為對我們來說另一個參考點是我們指出我們只運行了 85% 左右的產能。當我們進入未來時，這也是公司的另一個重大機會，我們將繼續尋求以更優化的水平來填補我們的產能。

So -- and then as far as Bangladesh is concerned, we're ramping up the facility. We believe we'll be at 75% of our exit capacity of the facility by the end of this year. And that ramp up is coming also at a cost. So all these big three initiatives are important because these are, I think, initiatives that will continue to give us some upward momentum in our operating margins as we move forward, as we continue to optimize our manufacturing.

因此，就孟加拉國而言，我們正在擴大該設施的規模。我們相信，到今年年底，該設施的出口容量將達到 75%。這種成長也是有代價的。因此，所有這三大舉措都很重要，因為我認為，隨著我們不斷前進，隨著我們繼續優化製造，這些舉措將繼續為我們的營運利潤帶來一些上升動力。

And I think we're in a good position. We're looking at phase two right now. We believe within the three-year period in terms of our guided CapEx about the 5%, that would include actually the development of that facility in our CapEx. And one thing that's happened is that with the growth of fleece and fleece takes a lot more fabric than T-shirts, I mean, three times the amount of material to make a sweatshirt than a T-shirt. So our mix is changing. So we're utilizing our textiles at a much greater extent, so which will allow us to bring on additional textile capacity, probably earlier than we originally anticipated, and fully utilize our system and bring our costs in a better equilibrium.

我認為我們處於有利位置。我們現在正在研究第二階段。我們相信，在三年期間內，我們的指導資本支出約為 5%，這實際上包括我們的資本支出中該設施的開發。發生的一件事是，隨著羊毛的增長，羊毛比 T 卹需要更多的布料，我的意思是，製作運動衫的材料數量是 T 恤的三倍。所以我們的組合正在改變。因此，我們正在更大程度地利用我們的紡織品，這將使我們能夠比我們最初預期的更早增加紡織產能，並充分利用我們的系統並使我們的成本達到更好的平衡。

So everything is, I think, is working. I did go out and visit all of our facilities since I've been back. I'm planning to, with our team, inaugurate our facility in Q4 in Bangladesh, which I will be visiting. And we're excited about -- we continue to execute on our strategy.

所以我認為一切都在發揮作用。回來後我確實出去參觀了我們所有的設施。我計劃與我們的團隊一起在第四季度為我將訪問的孟加拉國工廠舉行落成典禮。我們感到興奮的是——我們將繼續執行我們的策略。

That's great. Can I just follow-up on that? Is there any impact from the recent civil unrest? And did I understand correctly that it was margin dilutive in Q2, the Bangladesh facility?

那太棒了。我可以跟進一下嗎？最近的內亂有什麼影響嗎？我是否正確理解，孟加拉國工廠第二季的利潤率被稀釋了？

Well, I would say to you, look I mean, in our -- look, in our -- and the point I'm trying to make, if you look at the operating margins that we're delivering today, embedded in those operating margins are the startup of Bangladesh, are the inefficiencies of not running our facilities at 100%, and we haven't really optimized our yarn spinning to its fullest.

好吧，我想對你說，看，我的意思是，在我們的——看，在我們的——以及我想要表達的觀點中，如果你看看我們今天提供的營業利潤率，嵌入到那些營運中利潤率是孟加拉的新創企業，是我們設施未 100% 運作的低效率，而且我們還沒有真正充分優化我們的紗線紡紗。

So as we continue to execute and deliver and build these three areas, that will allow us to actually increase our operating margins as we move forward. So we've already got really good operating margins. And the point is that we've got negative efficiencies embedded in them. And as we move forward and that's what we guided to is that we will have continued improvement in our operating margins.

因此，當我們繼續執行、交付和建立這三個領域時，這將使我們在前進的過程中真正提高我們的營業利潤率。所以我們已經獲得了非常好的營業利益率。關鍵在於我們的效率是負的。隨著我們的前進，我們的指導方針是我們的營業利潤率將持續提高。

And regarding the civil unrest, look it was -- we were down for a couple of days. I mean, nothing happened to our facilities. It was not material to us, and we're running full and business as usual. And we're all back working right now.

就內亂而言，我們情緒低落了幾天。我的意思是，我們的設施沒有發生任何事情。這對我們來說並不重要，我們一切如常，一切如常。我們現在都回來工作了。

That's excellent. My follow-up question, maybe Rhod, I appreciate the operating margin leverage guidance, especially the SG&A call out for the quarter. What do you think is a sustainable level of SG&A, inclusive of the Barbados tax credit in our forward outlook?

那太好了。我的後續問題，也許是羅德，我很欣賞營業利潤率槓桿指導，尤其是本季的銷售、管理和行政費用 (SG&A)。您認為 SG&A 的可持續水平是多少，包括我們未來展望中的巴貝多稅收抵免？

Yeah, Brian, so we tried to give you as much guidance as we could on SG&A. And I think we believe we're performing very well, right? SG&A has been a big focus. It was a big focus under back to basic. And as we moved into the GSG strategy, we really are delivering on it. So if you look at the call out for the quarter, effectively, 7.7% is very low, but we do have the benefit.

是的，Brian，所以我們盡力為您提供有關 SG&A 的盡可能多的指導。我認為我們相信我們的表現非常好，對嗎？SG&A 一直是個重點。這是回歸基本的一個重點。當我們進入 GSG 策略時，我們確實正在兌現它。因此，如果你看一下本季的要求，實際上，7.7% 非常低，但我們確實有好處。

I indicated that in my remarks that if you adjust for the retroactive impact, we're basically -- would have been around 9%. And I think, if you move forward, we're probably going to be, I would say, near term in that 9%, 9.5% range, right? That's the way to think about it as we move through the year and as we move into 2025.

我在發言中表示，如果對追溯影響進行調整，我們基本上會在 9% 左右。我認為，如果你繼續前進，我想說，我們可能會在短期內達到 9%、9.5% 的範圍，對吧？當我們度過這一年並進入 2025 年時，就是這樣思考的。

But look bottom line, on SG&A, we can leverage it as we go forward. We can get leverage off SG&A. And I think -- one of the things that we are excited about and we called that out for the three-year outlook that we can improve our operating margin going forward. Some of that's going to come on the gross margin line and some of that's going to come on the SG&A line. But we're in great shape really to deliver margins on a go-forward basis as we grow at the higher rates as we start 2025.

但從底線來看，在SG&A 方面，我們可以在前進的過程中利用它。我們可以從 SG&A 中獲得槓桿。我認為，這是我們感到興奮的事情之一，我們在三年展望中指出，我們可以提高未來的營業利潤率。其中一些將出現在毛利率線上，另一些將出現在SG&A線上。但我們確實處於良好狀態，可以在未來的基礎上實現利潤率，因為我們從 2025 年開始將以更高的速度成長。

Vishal Shreedhar, National Bank Financial.

Vishal Shreedhar，國家銀行金融部門。

Hi. Thanks for taking my questions. Rhod, just following up on the comment that you gave us about the expansion in gross margin. What was driving that? Is that mix? Or is that pricing? How should we think about it?

你好。感謝您回答我的問題。羅德，我只是跟進您向我們提供的有關毛利率擴張的評論。是什麼推動了這一點？那是混合嗎？或者說這就是定價？我們該如何思考呢？

So if you look at expansion in the quarter, a lot of the expansion came from improvement in raw material costs and on the manufacturing side. Now we've been flagging that for a long time, Vishal, as you will recall, and we've seen the benefit of that as we -- with respect to improved raw material costs as we moved into the fourth quarter of last year and then it was moved in the first quarter of this year, second quarter. We'll continue to see some of that as we move forward, but it'll abate, right? Because obviously, on a wraparound basis, you won't get the level of improvement on a go-forward basis.

因此，如果你看看本季的擴張，你會發現很大一部分擴張來自原料成本和製造的改善。維沙爾，您可能還記得，現在我們已經標記這一點很長時間了，我們已經看到了這樣做的好處——隨著我們進入去年第四季度，原材料成本有所改善，然後今年第一季度、第二季又搬了。隨著我們的前進，我們將繼續看到其中的一些情況，但它會減弱，對嗎？因為顯然，在總體基礎上，你不會在前進的基礎上獲得改進水平。

But the margins are performing very well. And as Glenn said, we still have not really seen the full impact of our manufacturing structure with 85% capacity utilization in Central America, the ramp-up of Bangladesh still coming through. I would say we're excited about what we see with respect to the margin evolution.

但利潤率表現非常好。正如格倫所說，我們仍然沒有真正看到我們的製造結構的全面影響，中美洲的產能利用率為 85%，孟加拉的產能利用率仍在提高。我想說，我們對利潤率的演變感到興奮。

So I would say, overall, if you look at the cost side of the business, we're running very well. And then if you go to the top line, I think all the things that we're very excited about, our market share gains with fleece, with ring spun, with product innovation -- product innovation in our basics, which I think is very exciting. The new products, some of our brands are doing very, very well.

所以我想說，總的來說，如果你看看業務的成本方面，我們運作得很好。然後，如果你談到頂線，我認為我們非常興奮的所有事情，我們的市場份額通過羊毛、環錠紡和產品創新而增加——我們基礎上的產品創新，我認為這是非常重要的。人興奮。新產品，我們的一些品牌做得非常非常好。

We haven't talked that much about Comfort Colors but Comfort Colors is a very strong brand and it's flying. And that provides support to margins overall. So I would say, again, we've given a three-year outlook and we feel good about all of the different areas that are driving margin, both on the top line and on the cost structure.

我們沒有過多談論 Comfort Colors，但 Comfort Colors 是一個非常強大的品牌，而且正在飛速發展。這為整體利潤率提供了支撐。所以我想說，我們已經給了三年的展望，我們對推動利潤率的所有不同領域都感到滿意，無論是在營收或成本結構上。

Okay. So from -- so should I take from your answer that in the three-year outlook, it's a little bit of everything, the mix, the manufacturing efficiency, the top-line leverage. Is that a fair comment or is there any in particular that you'd point out?

好的。因此，我應該從你的回答中得出，在三年的前景中，一切都有點，混合、製造效率、頂線槓桿。這是一個公平的評論嗎？

No, it is. All of the different areas we're focusing is firing, right? So if you actually look at the three-year outlook, our active wear business is running very well. And if you -- even if you look at the numbers over the past few quarters from a growth perspective, as you looked on a go-forward basis, active wear is running very well and it's related all the things that we've talked about, market share gains, innovation, new programs, international growth. They're all driving the growth as we as we go forward. So on the active wear side, you can think of that as a high-single-digit-type growth business.

不，是的。我們關注的所有不同領域都在射擊，對嗎？因此，如果你真正看一下三年的前景，我們的運動服業務運作得非常好。如果你——即使你從成長的角度來看過去幾季的數字，當你從未來的角度來看時，運動服的運作情況非常好，它與我們討論過的所有事情都相關、市場份額成長、創新、新項目、國際成長。他們都在推動我們不斷前進。因此，在運動服裝方面，您可以將其視為高個位數成長型業務。

On the Innerwear side, it's lower. It's more like a low-single-digit-type growth business. But I would say we are really doing very well across all of the different product categories and channels that we're focusing on. And that is driving that strong, I would say, view of growth that then ultimately will benefit from that as we bring a lot of capacity online and we drive, I would say, a really good outlook in that term mid-teen EPS compound growth rate over the next three years.

在內衣方面，它較低。它更像是一個低個位數成長的業務。但我想說的是，我們在我們關注的所有不同產品類別和管道上都做得非常好。我想說，這正在推動這種強烈的成長觀點，隨著我們在網上提供大量產能，並且我們推動，我想說，在這個時期，每股收益複合增長的前景非常好。 。

Okay. Thank you for that. With respect to the transition to soft cotton, can you talk about the impact of that on the cost side and if that's going to help drive pricing higher in the industry as you make those transitions? Or is it when you -- as you transition, the prices of the products will be similar?

好的。謝謝你。關於向軟棉的過渡，您能否談談這對成本方面的影響，以及在您進行這些過渡時這是否有助於推動行業定價更高？或是當你過渡時，產品的價格會相似？

No, we're pricing the product similarly. Then we haven't changed our prices and the costs will be absorbed by other manufacturing efficiencies within our system.

不，我們對產品的定價類似。那麼我們就沒有改變我們的價格，成本將被我們系統內的其他製造效率所吸收。

Okay. And are you seeing higher demand as a result of this transition?

好的。您是否認為這種轉變會帶來更高的需求？

We're starting to see -- look, for the first time in Q2, we've actually seen positive POS in basic. So it's just being rolled out. So we have -- I think people who have tried the product., they love it. It prints better. It's softer. It feels better. I mean also, when you are offering a better quality at the same price and better printability, I think, it's a home run. And we think that this is -- it's actually going to be a really, really strong for us.

我們開始看到——看，在第二季度我們第一次實際上看到了基本的積極的 POS。所以它剛剛推出。所以我們——我認為嘗試過該產品的人都會喜歡它。它打印得更好。它更柔軟。感覺好多了。我的意思是，當你以相同的價格提供更好的品質和更好的印刷適性時，我認為這是一個本壘打。我們認為這對我們來說實際上非常非常強大。

Martin Landry, Stifel.

馬丁·蘭德里，斯蒂菲爾。

Hi. Good morning, everyone. And Glenn, it's great to have you back in the seat. So my first question is on the three-year outlook. I was wondering right now if we look at your position in the US print wear industry -- you've talked a lot about market share gains, would you be able to give us your best assumption of where you are in terms of market share gains when we look at all your products in aggregate?

你好。大家早安。格倫，很高興你能回到座位上。我的第一個問題是關於三年的展望。我現在想知道，如果我們看看您在美國印花服裝行業的地位 - 您已經談論了很多關於市場份額增長的問題，您能否向我們提供您對市場份額增長方面的最佳假設當我們匯總你們所有的產品時？

Well, look, I mean, the market in '23, I think, was down probably a little higher than mid-single digits and we outperformed the market. I think we're outperforming the market again this year. So I think we're in a good position. We keep taking market share and particularly in the categories of fashion and fleece.

好吧，我的意思是，我認為 23 年的市場跌幅可能略高於中個位數，而我們的表現優於市場。我認為今年我們的表現再次優於市場。所以我認為我們處於有利位置。我們不斷佔據市場份額，特別是在時尚和羊毛領域。

But as we look forward, what we've done is we've taken a modest view of the market where we think the market's going to be flat to low-single digits, and we'll be able to -- what we think we're going to continue to do is gain share in the fashion segment, continue driving growth of fleece products. You know, we're going to benefit from our innovation in our basics, and we -- like we saw in Q2 that we've actually, for the first quarter, saw positive POS.

但展望未來，我們所做的是對市場採取溫和的看法，我們認為市場將持平至低個位數，我們將能夠——我們認為我們要做的就是擴大在時尚領域的份額，繼續推動羊毛產品的成長。你知道，我們將從基礎創新中受益，就像我們在第二季度看到的那樣，我們實際上在第一季看到了積極的 POS。

Comfort Colors that Rhod mentioned before is actually doing really well. I mean, this is a very strong brand with lots of runway. And we have a lot of runway with American apparel as well, which we've -- we're continuing to spend against and look at driving that product line as well.

羅德之前提到的舒適顏色實際上做得非常好。我的意思是，這是一個非常強大的品牌，擁有很多跑道。我們也有很多美國服裝的跑道，我們正在繼續投資並考慮推動該產品線的發展。

And we have a lot of new programs in our pipeline. I mean, our GLB business is strong. We're working with our retail customer partners. Our international growth has been weak over the last three years and is starting to rebound. As Chuck mentioned that we've seen good growth and we believe that we're on a roll back to driving international again into good growth levels.

我們還有很多新項目正在籌備中。我的意思是，我們的 GLB 業務很強勁。我們正在與零售客戶合作夥伴合作。過去三年我們的國際成長一直疲軟，但現在開始反彈。正如查克所提到的，我們已經看到了良好的成長，我們相信我們正在回滾，以推動國際業務再次達到良好的成長水平。

And as we move forward, I think, importantly, and as we move forward into 2025, we've got good visibility on all of these factors. So I think we still feel very comfortable. We also feel very comfortable on the operating margin side because we're performing well. At the same time, we have tons of opportunity, I mean, between our yarn spinning, our capacity, our Bangladesh ramp up, our SG&A leverage. I mean all these things working together, I think, we've guided with confidence that we can deliver over the next three years.

我認為，重要的是，隨著我們向前邁進，隨著我們邁向 2025 年，我們對所有這些因素都有了很好的了解。所以我覺得我們還是覺得很舒服的。我們在營業利潤方面也感到非常滿意，因為我們表現良好。同時，我們有大量的機會，我的意思是，在我們的紗線紡紗、我們的產能、我們孟加拉的產能提升、我們的SG&A槓桿方面。我的意思是，我認為，所有這些事情共同努力，我們有信心在未來三年內實現目標。

Okay. That's -- you've answered part of my follow-up. I was trying to see what is -- what are your market share assumptions embedded in your three-year guidance? And if I understand correctly, I think, you're expecting the US print wear market to be flat to up slightly over the next three years, flat market share in fleece and T-shirts, and maybe market share gains in fashion. Is that fair?

好的。那就是——你已經回答了我的部分後續問題。我試圖了解你們三年指導中包含的市場佔有率假設是什麼？如果我理解正確的話，我想，您預計美國印花服裝市場在未來三年內將持平或略有上升，羊毛和 T 恤的市場份額持平，時尚市場份額可能會增加。這樣公平嗎？

No, I would say that the market's going to be -- flat to low-single digit, our assumption for the market. Well, obviously, we're projecting to grow with the market plus take share in the distributor market. So that's only one part of our business. And then at the same time, we're also going to be taking new programs in retail, GLB, international. So we add all that together, the mid-single digit is our growth rate

不，我想說市場將持平至低個位數，這是我們對市場的假設。顯然，我們計劃與市場一起成長，並在經銷商市場中佔據份額。所以這只是我們業務的一部分。同時，我們也將在零售、GLB、國際領域開展新項目。所以我們把所有這些加在一起，中間個位數就是我們的成長率

Okay. It would be great at some point to get a more clear picture of your market share in the distributor segment, just to get a sense of what more share gains you have ahead of you guys?

好的。在某個時候，如果能更清楚地了解您在經銷商領域的市場份額，只是為了了解您在您們之前獲得的更多份額，那就太好了？

Well, look, we said before that -- look, just maybe to answer [quite quickly], we have a large share in the basics segment and what we've been saying over the last couple of years is that the area for growth for us in the distributor market is in the fashion basic segment, which we're continuing to take share. So that's the area that we're going to gain the most share.

好吧，看，我們之前說過——看，也許只是為了[很快]回答，我們在基礎領域佔有很大份額，過去幾年我們一直在說的是，增長領域是我們在分銷商市場中處於時尚基本領域，我們正在繼續佔領這一領域的份額。這就是我們將獲得最大份額的領域。

Fleece as a category, we have a large share of fleece, but fleece is growing as a category and is growing high-single digits basically every year because people are -- consumers are wearing more sweatshirts and we're benefiting from that.

抓絨作為一個品類，我們佔有很大的份額，但抓絨作為一個品類正在不斷增長，並且基本上每年都以高個位數增長，因為人們——消費者穿著更多的運動衫，我們也從中受益。

And the area that we've seen negative growth has been in basics basically. And we've actually -- with our innovation, we hope to reverse that trend and get people buying more of our shirts. So I think overall, in the distributor business, we're comfortable as well as Comfort Colors is going. And then the point here is that it's not one-dimensional. That's still half of our business. The other half of our business, which is our national account business, our GLB, our retail, our international, they're all doing well as well. So the sum of the whole will deliver that mid-single digit growth. I think that's what you need to focus on.

我們看到負成長的領域基本上都是基礎領域。事實上，我們希望透過我們的創新扭轉這一趨勢，讓人們購買更多我們的襯衫。因此，我認為總體而言，在經銷商業務中，我們感到舒適，舒適色彩也正在發展。這裡的要點是它不是一維的。這仍然是我們業務的一半。我們的另一半業務，即我們的國民帳戶業務、我們的 GLB、我們的零售、我們的國際業務，它們都表現得很好。因此，整體的總和將帶來中等個位數的成長。我認為這就是你需要關注的。

And Martin, just to add, I think, to be clear, we do see fleece market share gain as we go forward, right? We don't -- as Glenn said, we have a big share, but we still see more opportunity on the print wear side. We see opportunity in retail. We see opportunity in international as well.

馬丁，我想補充一點，要明確的是，隨著我們的前進，我們確實看到了羊毛市場份額的增長，對嗎？我們沒有——正如格倫所說，我們擁有很大的份額，但我們仍然在印花磨損方面看到了更多機會。我們看到零售業的機會。我們在國際上也看到了機會。

So you made the comment around flat market share there. We're growing market share in fleece. We're growing it in ring spun. And these are really important drivers because they drive volume, they drive mix, they drive price. They really, I would say, are big drivers, along with all the other areas that we've talked about. So just to be clear, we're growing share everywhere.

所以你對那裡的市場份額持平發表了評論。我們正在擴大羊毛市場份額。我們用環錠紡來種植它。這些都是非常重要的驅動因素，因為它們推動銷售、推動組合、推動價格。我想說，與我們討論過的所有其他領域一樣，它們確實是重要的推動因素。需要明確的是，我們在各地的份額都在成長。

Jay Sole, UBS.

傑伊·索爾，瑞銀集團。

Great. Thank you so much. Glenn, a couple of questions. Number one is just given the unusual time period that just went -- that just played out, did you have some time away from the business? Can you just talk about any insights you had just maybe from just having different perspective looking at the business from where you were versus from before?

偉大的。太感謝了。格倫，有幾個問題。第一個問題是剛剛過去的一段不尋常的時期——剛結束，您有時間離開公司嗎？您能否談談您從以前與現在的角度看待業務的不同視角而獲得的任何見解？

And then secondly, just on the raising the leverage, what's the timeframe you expect to raise the leverage to 2, 2.5 whatever it is? And would you expect to immediately buyback stock as you increase the leverage? Thank you.

其次，關於提高槓桿率，您預計將槓桿率提高到 2、2.5 的時間範圍是多少？當你增加槓桿時，你會期望立即回購股票嗎？謝謝。

I'll talk about the first part and Rhod will answer the leverage part. But I would say to you, looking back, I mean, like I said in my comments earlier is that in the fall, I've never thought the company had been in better position on a go-forward basis. I mean everything was firing on all cylinders.

我將討論第一部分，羅德將回答槓桿部分。但我想對你說，回顧過去，我的意思是，就像我之前在評論中所說的那樣，在秋天，我從未認為該公司在前進的基礎上處於更好的位置。我的意思是一切都在全力以赴。

We invested in Bangladesh where we knew that that was going to be a key to the success of our fashion basics and also offsetting some of the trends of inflation in Central America. We've developed the largest innovation pipeline on every single product. And we keep mentioning basics, but it's including -- fleece has been totally revamped. Our Comfort Colors brand, we've got a new technology there as well. So we spent two years developing all this. And I would say that in the fall, we were in a breakout mode of really, you know, I think, firing on all these cylinders and taking a step backwards, I was saying to myself, and say, look this is a little bit crazy, to be honest, with you.

我們在孟加拉進行了投資，我們知道這將是我們時尚基本款成功的關鍵，同時也抵消中美洲的一些通貨膨脹趨勢。我們為每種產品開發了最大的創新管道。我們不斷提到基礎知識，但其中包括——羊毛已經被徹底改造。我們的 Comfort Colors 品牌也採用了新技術。所以我們花了兩年的時間來開發這一切。我想說的是，在秋天，我們真的處於一種突破模式，你知道，我想，在所有這些氣缸上開火併後退一步，我對自己說，看，這有點說實話，和你在一起很瘋狂。

And now that I'm back, I can see that everything is intact. I think that nothing has changed. All those opportunities are still here. I think one thing that, I think, is important is that the team internally, the management team, the employees, all the ranks and file basically are motivated more than ever. And I think that that's one, I think, positive out of this whole outcome is that the management team, the company, there's a resurgence of energy motivation. So it's great. And we're really excited and we're looking forward to over the next few years and delivering great results and creating shareholder value.

現在我回來了，我可以看到一切都完好無損。我認為一切都沒有改變。所有這些機會仍然存在。我認為，我認為重要的一件事是，團隊內部、管理團隊、員工、所有層級和文件基本上都比以往任何時候都更有動力。我認為，整個結果的一個積極的方面是，管理團隊、公司，能源動力的復甦。所以這很棒。我們真的很興奮，我們期待在未來幾年內取得出色的成果並創造股東價值。

And Jay, on the share buyback., so we finished the end of the second quarter with leverage 1.6 times. You can tell we're excited about the strength of the business on a go-forward basis. And you can also see that our free cash flow will be very strong as we move through the back half of the year.

傑伊在股票回購方面，所以我們在第二季末的槓桿率為 1.6 倍。您可以看出，我們對公司未來的業務實力感到興奮。您還可以看到，隨著下半年的到來，我們的自由現金流將非常強勁。

So as we effectively move through Q3, Q4, we do expect to continue to repurchase shares, and ultimately, we're going to drive towards 2 times leverage at the end of the year. So we've got a lot of firepower as we as we move through the back half. And obviously, we've increased our NCIB by 10% to give us the flexibility to do that.

因此，當我們有效地度過第三季、第四季時，我們確實預計將繼續回購股票，最終，我們將在年底將槓桿率提高到 2 倍。因此，當我們進入後半場時，我們擁有大量火力。顯然，我們將 NCIB 增加了 10%，以便我們能夠靈活地做到這一點。

So we -- again, in parallel with the way that the business is effectively running and the strength of the business, we feel very good about returning capital to shareholders and we plan to do that. And as we move now to really a midpoint of 2 times in the middle of our 1.5 to 2.5 times leverage, we expect to continue to buy back at a higher rate as we move through the end of the year.

因此，我們再次考慮到業務的有效運作方式和業務實力，我們對向股東返還資本感到非常滿意，我們計劃這樣做。隨著我們現在的槓桿率達到 1.5 至 2.5 倍槓桿的中間值 2 倍，我們預計在年底時將繼續以更高的利率回購股票。

And then as we go into '25 and '26 and '27, again, the strength of the business, return on capital will effectively be, I would say, a meaningful part of our capital allocation strategy as we ultimately combine that with the fundamentals to drive the strong EPS growth.

然後，當我們進入「25」、「26」和「27」時，我想說，業務實力、資本回報率實際上將成為我們資本配置策略的一個有意義的部分，因為我們最終將其與基本面結合起來推動每股盈餘的強勁成長。

Stephen MacLeod, BMO Capital Markets.

史蒂芬‧麥克勞德（Stephen MacLeod），蒙特婁銀行資本市場部。

Thank you. Good morning, everyone. Good morning, guys. Just a couple of questions I had about industry performance through the quarter. I was just wondering if you could give the POS for fleece and fashion basics, I guess as well as basics for the industry and for Gildan's performance as well, just to see how you're comparing when you're driving those market gains.

謝謝。大家早安。早安，夥計們。我有幾個關於本季行業表現的問題。我只是想知道您是否可以提供羊毛和時尚基礎知識的 POS，我猜還有行業基礎知識和 Gildan 的表現，只是為了看看您在推動這些市場收益時如何進行比較。

Sure. Thanks, Stephen. I think overall, I mean, we saw good performance in POS across the board. I mean, as we talked about, it started with the quarter a little slower, but it continued to progress each month. As Glenn mentioned about the basics, we did see positive POS in the basics COE for the first time in a while. And we -- it's really driven by our innovation. We talked about our soft cotton technology, and it's been well received by the market, and I think it's having an impact. And so I think we're outperforming the market in that segment as well.

當然。謝謝，史蒂芬。我認為總體而言，我們在 POS 領域看到了良好的表現。我的意思是，正如我們所討論的，本季開始時速度有點慢，但每個月都在繼續進步。正如 Glenn 提到的基礎知識一樣，我們確實有一段時間第一次在基礎 COE 中看到積極的 POS。而我們——這確實是由我們的創新所驅動的。我們談到了我們的軟棉技術，它受到了市場的好評，我認為它正在產生影響。因此，我認為我們在該領域的表現也優於市場。

When we look at the ring spun, I mean, if we look at it, we were up mid- to high-single digits in ring spun in the quarter as well. And again, as we look at some of the competitors, they were in the negative range. So we continue to gain share across that.

當我們觀察環錠紡時，我的意思是，如果我們觀察的話，本季我們的環錠紡也達到了中高個位數。再次，當我們觀察一些競爭對手時，他們處於負值範圍內。因此，我們繼續在這方面獲得份額。

And then on fleece, we're looking at fleece and we were mid -- low to mid on fleece and then had the ability to continue to take share from them as well. So I think we're performing well across the markets in each category.

然後在羊毛方面，我們正在研究羊毛，我們在羊毛方面處於中低端到中端，然後也有能力繼續從他們那裡奪取份額。所以我認為我們在每個類別的市場上都表現良好。

Okay. That's great color. Thanks, Chuck. And then just on the gross margin, I mean, you've talked about the SG&A and how that's expected to evolve in sort of a longer-term target. Just wondering if you can do the same for gross margin like how should we expect that to evolve through the year? I know eventually you'll be up against some of the tougher comps as you roll into next year. So just how can we think about gross margin, I guess, for the balance of this year as well as into that three-year margin expansion target that you're highlighting?

好的。那顏色真棒。謝謝，查克。然後就毛利率而言，我的意思是，您談到了銷售及管理費用（SG&A）以及預計其將如何演變為長期目標。只是想知道你是否可以對毛利率做同樣的事情，例如我們應該期望毛利率在這一年中如何發展？我知道當你進入明年時，最終你會遇到一些更艱難的比賽。那麼，我想，我們如何考慮今年剩餘時間的毛利率以及您強調的三年利潤率擴張目標？

Yeah, Stephen, look, we expected strong gross margin, right, as we continue to move through the year, if you look at what we've guided from an operating profit margin perspective. I made some comments earlier about SG&A. You can see that gross margin will stay strong as we move through Q3, Q4. And again, I mean, all the drivers are in place in order to deliver on that.

是的，史蒂芬，你看，如果你從營業利潤率的角度來看我們的指導，我們預計今年將繼續實現強勁的毛利率。我之前對 SG&A 發表過一些評論。您可以看到，隨著我們進入第三季、第四季，毛利率將保持強勁。我的意思是，所有的驅動因素都已就位，以實現這一目標。

And then we do expect operating margin growth as we go from '25 to '27, driven by all the things that we've talked about. So I would say we do believe that we have now moved our gross margin, really, I would say, a bit higher versus we've historically run. And that combined with SG&A leverage gives us strong confidence on our ability to take the -- I would say, what will be a very good operating margin when we finish the end of '24 and continue to drive that over the next three years.

然後，在我們討論過的所有事情的推動下，我們確實預計從 25 年到 27 年營業利潤率會成長。所以我想說，我們確實相信我們現在的毛利率已經提高了，實際上，我想說的是，與我們歷史上的水平相比，毛利率提高了一點。再加上 SG&A 槓桿，我們對自己的能力充滿信心，我想說的是，當我們在 24 年底結束時，我們將獲得非常好的營業利潤率，並在未來三年繼續推動這一目標。

That's great. Thanks, Rhod. And then maybe just one more, if I could, just on the fleece business. I know you talked about strong replenishment in the quarter. With the warm weather we've been having, have you seen any initial signs of maybe sell-through weakness or has that not really materialized?

那太棒了。謝謝，羅德。如果可以的話，也許還會再談一件關於羊毛生意的事情。我知道您談到了本季的強勁補貨。由於天氣溫暖，您是否看到了銷售疲軟的任何初步跡象，或者這種跡象尚未真正實現？

Well, look, I mean, POS in the beginning in July was, like we said, was down and that was pretty much across the board, but that's function of [Burrell] basically that went through most of the United States, the hot weather, also 4th of July holiday. So it's come back. We've seen already our POS come back.

好吧，看，我的意思是，正如我們所說，7 月初的POS 出現了下降，而且幾乎是全面下降，但這基本上是[Burrell] 的功能，它貫穿了美國大部分地區，炎熱的天氣，也是7月4日假期。所以它回來了。我們已經看到我們的 POS 恢復了。

I mean, fleece in Q2 up until this period is really not the largest POS sell through and you look at it as a percentage of sales. So distributors bring in their inventory basically and their large POS timeframe is really as we move into (technical difficulty) season and into Q4 when you actually get the height of the POS.

我的意思是，直到這個時期，第二季的羊毛實際上並不是最大的 POS 銷售量，你可以將其視為銷售額的百分比。因此，分銷商基本上會引入他們的庫存，他們的大型 POS 時間框架實際上是在我們進入（技術難度）季節和第四季度時，當你真正獲得 POS 的高度時。

But the one thing maybe to point out is, look, we have a huge order book on fleece. We had strong sales in Q2. We have strong demand in Q3 and in Q4. We're actually chasing fleece as we speak today. So we probably won't be able even to deliver all of our commitments in Q3 that may spill into Q4 because back in the fall, we closed down one of our sewing factories and part of our optimization of our sewing (technical difficulty) and cost. And we relocated that to Nicaragua. And that ramp-up is just taking a little bit longer than we anticipated.

但也許需要指出的一件事是，看，我們有大量的羊毛訂單。我們在第二季的銷售強勁。我們在第三季和第四季有強勁的需求。正如我們今天所說，我們實際上正在追逐羊毛。因此，我們甚至可能無法兌現第三季度的所有承諾，這些承諾可能會蔓延到第四季度，因為在秋天，我們關閉了一家縫紉工廠以及我們縫紉（技術難度）和成本優化的一部分。我們將其遷往尼加拉瓜。而且這種提升所花費的時間比我們預期的要長一點。

So we're a little behind, I would say, in terms of where we want to go in terms of fleece, but we will be -- towards the end of Q3 and in Q4, we'll be back on track. So demand is strong. We have all the orders pretty much in-house to continue driving a good growth in fleece and we're pushing as hard as we can to fulfill our orders.

因此，我想說，就我們想要在羊毛方面實現的目標而言，我們有點落後，但我們會——在第三季度末和第四季度，我們將回到正軌。所以需求很強。我們幾乎擁有所有訂單，以繼續推動羊毛的良好增長，我們正在盡最大努力履行我們的訂單。

Chris Li, Desjardin.

克里斯李，德雅丁。

Thank you. Good morning, everyone. Just maybe a first question on cotton. I know that it's been gradually pulling back through the year. And I'm just wondering what you think the impact could potentially be on your margin for next year. Do you think it's going to be neutral or positive? Just some high level comments would be great.

謝謝。大家早安。也許只是關於棉花的第一個問題。我知道這一年以來它一直在逐漸回落。我只是想知道您認為這可能會對您明年的利潤產生什麼影響。您認為這會是中性的還是正面的？只要有一些高水準的評論就太好了。

Well, look, I think, just taking cotton in general, cotton has come down. But if you look at cotton and our overall costs, you know, it's around 25%, right? So as you go forward, I would say that there's other inflationary items like labor, transportation, energy costs. Labor has gone -- is going up, particularly in Central America. So I would say that in a typical inflationary environment that we are in today, where you have labor, transportation, energy going up, normally, you would see price increases to support those inflationary costs. And I think that the cotton will basically give us a little bit of runway to maintain probably pricing flat as we move into next year and then be able to support some of the inflationary areas. So I would say that the whole cotton inflationary impact will be neutral to us as we move forward into '25.

嗯，你看，我認為，就棉花而言，棉花已經下跌了。但如果你看看棉花和我們的整體成本，你知道，大約是 25%，對吧？因此，當你展望未來時，我會說還有其他通貨膨脹項目，例如勞動力、交通、能源成本。勞動力已經消失——正在上升，特別是在中美洲。所以我想說，在我們今天所處的典型通膨環境中，勞動力、交通、能源都在上漲，通常情況下，你會看到價格上漲以支撐這些通膨成本。我認為，當我們進入明年時，棉花基本上將為我們提供一點跑道，使價格保持平穩，然後能夠支持一些通膨領域。因此，我想說，隨著我們進入 25 年，整個棉花通膨的影響對我們來說將是中性的。

Okay. That's great. And second question, Glenn, maybe just on M&A. Just wondering where does that rank in your capital allocation. I just ask because as you mentioned, some of your competitors are weakening. I'm wondering if there are any potentially attractive opportunities that you think would be a good use of capital?

好的。那太棒了。第二個問題，格倫，也許只是關於併購。只是想知道這在您的資本配置中排名如何。我之所以這麼問，是因為正如您所提到的，您的一些競爭對手正在衰弱。我想知道您認為是否有任何潛在的有吸引力的機會可以很好地利用資本？

Well, look, I think we called out that we've just increased our NCIB. So our focus is to return capital to shareholders. We're very comfortable with our organic strategy, delivering to mid-single digits, strong and improving operating margins, and obviously, of course, which translates into strong EPS, which will obviously give us a good return. So I think that's our priority.

嗯，看，我想我們已經宣布我們剛剛增加了 NCIB。所以我們的重點是向股東返還資本。我們對我們的有機策略非常滿意，實現了中個位數、強勁且不斷提高的營業利潤率，當然，這轉化為強勁的每股收益，這顯然會給我們帶來良好的回報。所以我認為這是我們的首要任務。

I mean some of the competitors that are in trouble today are weak. I mean, there's not a lot of value associated with them and their equipment because we've got capacity available to us today, and I think we can get all those sales organically.

我的意思是，今天陷入困境的一些競爭對手很弱。我的意思是，他們和他們的設備沒有太多價值，因為我們今天已經有可用的產能，而且我認為我們可以有機地獲得所有這些銷售。

So as far as we're concerned, I think we're in a really good position. We're competitive -- we're widening our competitive advantage. We've got a large wave of innovation across all segments of the company. We're firing on all four cylinders. We're going to stay focused right now and continue to deliver on our strategy that we just called out over the next three years.

就我們而言，我認為我們處於非常有利的位置。我們具有競爭力——我們正在擴大我們的競爭優勢。我們在公司的各部門都掀起了一股創新浪潮。我們正在對所有四個氣缸進行點火。我們現在將保持專注，並在未來三年繼續實施我們剛剛提出的策略。

That concludes our Q&A session. I will now turn the conference back over to Jesse Hayem for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回傑西·海耶姆致閉幕詞。

Thank you, Jeannie. once again, we'd like to thank everyone for joining us and attending our call today. And we look forward to speaking with you soon. Have a great day.

謝謝你，珍妮。我們要再次感謝大家今天加入我們並參加我們的電話會議。我們期待盡快與您交談。祝你有美好的一天。

This does conclude today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。