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Gildan Activewear
Gildan Activewear

Clothing & footwear / Branded clothing

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Risks

1. Competition Risk: Gildan Activewear is subject to competition from other clothing and textile companies, such as Fruit of the Loom and Hanes. Gildan must ensure that it is producing competitive products that offer superior value and better quality than those of its competitors.


2. Global Economy Risk: Gildan’s financial performance is affected by the global economy and global economic cycles. When the global economy is weak, sales of Gildan’s apparel, which is primarily sold in North America, Europe, and Central and South America, can decline.


3. Currency Risk: Gildan faces currency risk due to its global operations. A strong U.S. dollar can weaken Gildan’s sales and profitability if it cannot pass the currency exchange rate fluctuations onto its customers.


4. Regulatory Risk: Changes to environmental regulations or labor laws in the countries where Gildan operates could increase the company’s costs.


5. Supply Chain Risk: Gildan is dependent on its suppliers for the production of its products. If Gildan is unable to secure sufficient materials or parts for its product lines, it could affect the company's sales and profitability.


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