Gildan Activewear (NYSE:GIL) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) posted its quarterly earnings results on Thursday. The textile maker reported $0.43 EPS for the quarter, beating the consensus estimate of $0.36 by $0.07, Zacks reports. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.14 billion. Gildan Activewear had a return on equity of 24.48% and a net margin of 6.10%.The firm’s revenue was up 63.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.59 EPS. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• We reported record Q1 net sales from continuing operations of $1.17 billion (up ~64% YoY), driven primarily by the HanesBrands acquisition.
• Adjusted diluted EPS from continuing operations fell to $0.43 (from $0.59 a year ago) and GAAP diluted loss per share was $0.30, reflecting integration costs, an acquisition inventory fair-value step-up and higher financing and SG&A pressures.
• Management is progressing on integration and expects approximately $250 million of run-rate cost synergies over three years, including about $100 million in 2026, as it relocates Hanes volumes into Gildan facilities and standardizes systems.
• The company is maintaining 2026 guidance — $6.0–$6.2 billion revenue, ~20% adjusted operating margin and adjusted EPS of $4.20–$4.40 — while noting Q2 (~$1.6 billion) is impacted by a proactive temporary inventory reduction and shipment timing shifts into H2.
• Net debt ended Q1 at $4.868 billion with leverage of 3.3x; management is pursuing a sale of Hanes Australasia to pay down debt and said buybacks will resume only after reaching a ~2x leverage target within the 1.5–2.5x framework.

Gildan Activewear Stock Performance

Shares of NYSE:GIL traded down $0.52 on Friday, hitting $61.47. The company’s stock had a trading volume of 1,574,837 shares, compared to its average volume of 1,078,575. The stock’s 50-day moving average is $60.14 and its two-hundred day moving average is $61.51. Gildan Activewear has a 12 month low of $46.00 and a 12 month high of $73.69. The company has a market capitalization of $11.38 billion, a price-to-earnings ratio of 23.46 and a beta of 1.10. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.05 and a current ratio of 2.11.

Gildan Activewear Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Wednesday, May 20th will be paid a $0.249 dividend. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.6%. Gildan Activewear’s dividend payout ratio is presently 38.17%.

Analysts Set New Price Targets

A number of analysts have recently issued reports on GIL shares. Zacks Research cut Gildan Activewear from a “hold” rating to a “strong sell” rating in a report on Monday, February 23rd. Scotiabank upped their price target on Gildan Activewear from $72.00 to $74.00 and gave the stock a “sector outperform” rating in a report on Monday, March 2nd. Canadian Imperial Bank of Commerce restated an “outperform” rating and issued a $77.00 price target on shares of Gildan Activewear in a report on Friday. National Bank Financial upped their target price on Gildan Activewear from $92.00 to $97.00 and gave the company an “outperform” rating in a research report on Monday, February 2nd. Finally, BMO Capital Markets upped their target price on Gildan Activewear from $70.00 to $78.00 and gave the company an “outperform” rating in a research report on Monday, January 26th. Thirteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $79.92.

Key Headlines Impacting Gildan Activewear

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Q1 results beat expectations — adjusted EPS of $0.43 vs. $0.36 est. and record first‑quarter revenue up ~63.8% year‑over‑year as HanesBrands was fully consolidated; company reiterated full‑year guidance and synergy targets, which supports medium‑term earnings power. Gildan Reports Record First Quarter Revenue and Maintains its Full Year 2026 Guidance
• Positive Sentiment: Company maintained FY‑2026 EPS guidance (4.20–4.40) and revenue range (~$6.0–$6.2B) and reiterated expected synergy run‑rate (~$250M over three years), giving investors a clearer earnings trajectory post‑acquisition. Q1 release and call materials
• Positive Sentiment: Declared a quarterly cash dividend of $0.249/share (ex‑dividend May 20, payable June 15), which supports yield‑seeking demand and signals cash‑flow confidence.
• Neutral Sentiment: Shareholders re‑elected all nine management nominees, approved auditor reappointment, renewed the Shareholder Rights Plan and passed the non‑binding Say‑on‑Pay — governance items passed but litigation risk remains. Gildan Activewear Reports on Shareholders’ Voting Results
• Negative Sentiment: Regulatory / litigation overhang: law firms launched a class action alert and a fraud investigation (Levi & Korsinsky) tied to past CEO removal/reinstatement and alleged governance failures — these actions create downside risk, potential legal fees and reputational damage. GIL Shareholder Alert: Gildan Activewear Inc. Class Action Lawsuit – Investors Should Contact Levi & Korsinsky Levi & Korsinsky Launches Fraud Investigation
• Negative Sentiment: GAAP results showed a loss for the quarter (GAAP diluted loss per share $0.30) and adjusted metrics reflect integration and inventory moves; near‑term margins were pressured (operating margin (0.1)% GAAP), which could weigh on sentiment until synergies are realized. Q1 press release: GAAP loss and adjusted metrics

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of GIL. Invesco Ltd. lifted its holdings in shares of Gildan Activewear by 6.0% during the fourth quarter. Invesco Ltd. now owns 216,434 shares of the textile maker’s stock valued at $13,518,000 after purchasing an additional 12,261 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new stake in Gildan Activewear in the 4th quarter worth about $383,000. State of Tennessee Department of Treasury lifted its stake in Gildan Activewear by 8.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 89,766 shares of the textile maker’s stock worth $5,865,000 after acquiring an additional 7,274 shares in the last quarter. Mackenzie Financial Corp lifted its stake in Gildan Activewear by 41.2% in the 4th quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after acquiring an additional 2,001,279 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in Gildan Activewear in the 4th quarter worth about $880,000. Institutional investors own 82.83% of the company’s stock.

Gildan Activewear Company Profile

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.