05:12 PM EDT, 04/15/2024 (MT Newswires) -- Gildan Activewear ( GIL ) shares edged down in after-hours New York trading after chief executive Vince Tyra after trade Monday unveiled his "key focus strategic priorities". Concurrently, the company also reaffirmed its 2024 full year guidance and announced preliminary Q1 revenue. Furthermore, the company said it intends to hold an Investor Day in the Fall of 2024 to provide a "comprehensive strategic plan".

This comes after the company reportedly set April 10 as the deadline for an initial takeover offer and it comes amid a heated fight about the make up of its board following the December firing of former chief executive Glenn Chamandy.

In a recent report in The Globe and Mail newspaper, U.S. investment firm Browning West, which has a roughly 5% stake in Gildan, was said to be seeking a court order preventing the board of Gildan from signing any binding deal to sell the clothing maker until shareholders vote on new directors.

The report added: "It's the latest in a series of legal volleys between Montreal-based Gildan and Browning West in what has become one of the most acrimonious corporate power struggles in recent years in Canada."

For his own part, in reflecting on his first 90 days in the role, Tyra said, "My first few months as CEO have confirmed my belief that Gildan's core fundamentals are strong and that we are in a great position to unlock further potential and launch the next phase of our growth."

The company's shares were last seen down US$0.011 to US$35.32 in after-hours New York trading. They closed down C$0.33 to C$48.71 on the Toronto Stock Exchange.

On medium-term targets, assuming no deterioration in the current macroeconomic environment, Gildan said it is confident the targeted priorities will position it to continue to drive market share gains in key product categories, unlock further opportunities in targeted markets and deliver on key financial metrics over the 2025-2028 period.

This, it added, reflected the following: net sales growth at a compound annual growth rate in the mid-single digits range; annual adjusted operating margin in the range of 18% to 21%; capital expenditures (capex) as a percentage of sales of about 5% per year, on average, to support long-term growth and vertical integration; and adjusted diluted EPS growth per annum in the high-single to low double-digit range.

Gildan said it expects to "maintain its capital allocation priorities which, beyond planned capex deployment, focus on annual dividend growth, continued share repurchases now in line with a leverage framework of 1.5x to 2x, and value accretive M&A. The combination of the above is expected to drive strong shareholder returns."

Further, Gildan today reaffirmed its 2024 full year guidance as announced on February 21 as well as the assumptions underpinning the outlook. This includes: revenue growth for the full year to be flat to up low-single digits; and adjusted operating margin slightly above the high end of the 18% to 20% annual target range. This compares to fiscal 2023 adjusted operating margin of 17.3%; fiscal 2023 operating margin was 20.1%.

It also includes: Capex to come in at approximately 5% of sales; and adjusted diluted EPS in the range of US$2.92 to $3.07, up "significantly" between 13.5% and 19.5% year over year. This compares to 2023 adjusted diluted EPS of US$2.57; fiscal 2023 GAAP diluted EPS was US$3.03. And it also includes free cash flow above 2023 levels driven by increased profitability, lower working capital investments and lower capital expenditures than in 2023.

In addition, Gildan today announced that its preliminary Q1 2024 net sales are expected to come in at approximately US$695 million, or down about 1% year over year, as previewed in its Q4 2023 press release.

Monday's statement concluded: "The above outlook as well as the medium-term targets assume no meaningful deterioration from current market conditions including the pricing and inflationary environment, and no further deterioration in geopolitical environments. They reflect reasonable industry growth and expected market share gains. Though the timing of the potential enactment of legislation remains uncertain, we have also incorporated the estimated impact of the implementation of draft Global Minimum Tax legislation in Canada and Barbados on our effective tax rate, retroactive to January 1, 2024, as well as certain refundable tax credits expected. In addition, they reflect Gildan's expectations as of April 15, 2024 and are subject to significant risks and business uncertainties, including those factors described under "Forward-Looking Statements" in this press release and the annual MD&A for the year ended December 31, 2023."