Gildan Activewear Inc. (NYSE:GIL) Q4 2023 Earnings Call Transcript

But as we move into Q2, Q3, Q4, you’ll see that. So volume growth is a key driver and for us, it’s always a key driver. And that’s how we think about basically growing our business over the long-term.

Vishal Shreedhar: Okay. And with respect to the operating margin targets, given the tax credits that’s embedded in SG&A, should we think of that operating margin target of 18% to 20% being permanently moved up post 2024?

Vince Tyra: Well, I think it’s a good question and something for us to think about right, as we move through 2024. As I said earlier, legislation has not been enacted yet. Effectively, we’ve assumed that it will be and that it will be retroactive. But as we move through ’24, obviously we’ll be assessing that. And as we move towards ’25, we’ll be thinking about that. I mean, I think fundamentally, it just shows as we think about our operating target, it’s and how we set that, it’s a bit of a — we use it as a bit of a proxy to be able to drive return on invested capital, to drive RONA. So what we want is good top line growth and then we want very good return on invested capital. We want efficient use of our asset base and we use operating margin as a way to achieve that and 18% to 20% has been a good range for us, but if ultimately fundamentally the landscape changes and as we continue to actually leverage the GSG strategy, which as you can tell we’re very, very excited about it, I think as we move to ’25, we’ll be assessing how we think about that target we give to you.

Vishal Shreedhar: Thank you.

Operator: Your next question comes from the line of Stephen MacLeod with BMO Capital Markets. Your line is open. Mr. MacLeod, your line is open. There are no further questions at this time. I will now turn the call back over to Jessy Hayem for closing remarks.

Jessy Hayem: Thank you, Jeanie. Once again, we’d like to thank everyone for joining us this morning, and we look forward to speaking to you soon. Have a great day.

Operator: This concludes today’s call. You may now disconnect.