How does this partnership compare to Gildan's existing distribution channels and previous agreements for other brands?

Overview of the new partnership

• What was announced: Gildan has granted S&S Activewear the exclusive wholesale‑distribution rights for the American Apparel® brand in the United States’ imprintables (promotional‑product) market.
  
• Purpose of the deal: To create a dedicated platform that can intensify brand awareness for American Apparel and accelerate sales by tapping S&S Activewear’s established promotional‑product network.

How this partnership fits into – and differs from – Gildan’s existing distribution model

Comparison with Gildan’s prior brand‑specific agreements

1. Previous agreements for other licensed or sub‑brands (e.g., past wholesale deals for the Bella + Canvas line, or regional licensing for Gildan Kids*):

   • Often non‑exclusive and covered broader apparel categories (basic tees, sportswear).
     
   • Geographically broader – sometimes covering North America, Europe, or Asia simultaneously.
     
   • Channel‑agnostic – the same distributor handled both bulk‑order retail and smaller‑order custom‑print business.

2. The S&S Activewear deal is the first single‑purpose, exclusive partnership that isolates the American Apparel brand to the imprintables segment. This is a departure from Gildan’s “one‑size‑fits‑all” wholesale model and reflects a strategic segmentation:

   • Brand‑level focus: American Apparel will be marketed as a premium, customizable product rather than a generic basic tee.
     
   • Market‑level focus: The partnership zeroes in on the U.S. promotional‑product market, a space where Gildan historically relied on multiple distributors rather than a dedicated partner.
     
   • Sales‑leverage: By granting exclusivity, Gildan incentivizes S&S Activewear to prioritize American Apparel in its sales pitches, marketing programs, and inventory planning—something that was less likely under prior, broader, non‑exclusive arrangements.

Strategic implications

• Enhanced brand positioning: American Apparel can now be promoted as a high‑quality, fashion‑forward imprintable—a narrative that aligns with S&S Activewear’s reputation for delivering “active‑wear meets promotional‑product” solutions.
• Accelerated sales cycles: S&S Activewear’s existing relationships with corporate branding agencies and event planners mean that American Apparel can move from concept to order much faster than through the traditional wholesale‑to‑retail pipeline.
• Complementary to existing channels: Gildan still retains its global wholesale network for its core labels, but this partnership fills a gap—the promotional‑product niche—without cannibalizing existing sales. It adds a new revenue stream that is largely independent of the standard retail‑store model.
• Risk mitigation: The exclusivity clause protects S&S Activewear from competing American Apparel distributors, while Gildan secures a committed partner that will invest resources (marketing, inventory, training) specifically for this brand in the U.S. imprintables market.

Bottom line

• Scope & exclusivity: The S&S Activewear agreement is U.S.-only and exclusive, a sharper, more focused arrangement than Gildan’s historically broader, non‑exclusive wholesale contracts for other brands.
  
• Channel specialization: It targets the imprintables (custom‑print) channel, leveraging S&S Activewear’s deep promotional‑product expertise—something Gildan’s existing distribution network has not specifically addressed.
  
• Strategic complement: Rather than replacing Gildan’s existing channels, the partnership adds a dedicated, high‑touch distribution layer for American Apparel, expanding Gildan’s overall market coverage and creating a new growth engine within a niche but lucrative segment.