Gildan Activewear (NYSE:GIL) Issues Quarterly Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its quarterly earnings data on Thursday. The textile maker reported $0.96 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.31 by ($0.35), Briefing.com reports. Gildan Activewear had a net margin of 11.02% and a return on equity of 37.40%. The company had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.01 billion. During the same period last year, the business earned $0.83 earnings per share. The company’s quarterly revenue was up 31.1% compared to the same quarter last year. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

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

• Gildan completed the acquisition of HanesBrands (Dec 1, 2025) and says integration is progressing ahead of plan, raising expected run‑rate cost synergies to $250 million over three years (about $100M in 2026, $100M in 2027 and $50M in 2028).
• Reported record 2025 continuing‑operations results with roughly $3.6 billion of revenue, a 21.5% adjusted operating margin and adjusted diluted EPS of $3.51 (up ~17% year‑over‑year).
• To capture synergies faster, Gildan will close two Hanes textile factories and relocate production into its network, creating short‑term capacity tightness and a planned temporary reduction of inventory in customer channels that will pressure Q1 sales and margins (Q1 adjusted operating margin guided to ~12.9%).
• 2026 continuing‑operations guidance: revenue of $6.0–$6.2 billion, adjusted operating margin ~20%, adjusted diluted EPS of $4.20–$4.40, CapEx ~3% of sales and free cash flow above $850 million; the Hanes Australia unit (HAA) is held for sale with proceeds targeted to accelerate deleveraging toward a 1.5x–2.5x net‑debt/EBITDA target.
• Longer‑term capacity and cost plan includes advancing Phase Two of the Bangladesh textile complex (construction over ~18 months, production late‑2027) and other manufacturing/IT/distribution harmonization efforts intended to reinforce Gildan’s low‑cost, vertically integrated platform.

Gildan Activewear Stock Down 1.4%

Shares of GIL opened at $68.13 on Friday. The company has a quick ratio of 0.88, a current ratio of 2.01 and a debt-to-equity ratio of 0.94. The business has a fifty day moving average of $66.66 and a 200 day moving average of $60.73. The company has a market cap of $12.62 billion, a PE ratio of 26.01 and a beta of 1.08. Gildan Activewear has a 52-week low of $37.16 and a 52-week high of $73.69.

Gildan Activewear Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, April 13th. Investors of record on Thursday, March 19th will be given a $0.249 dividend. This is a boost from Gildan Activewear’s previous quarterly dividend of $0.23. This represents a $1.00 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Thursday, March 19th. Gildan Activewear’s dividend payout ratio is 28.75%.

Key Headlines Impacting Gildan Activewear

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

• Positive Sentiment: Record revenue and margin improvement: Gildan reported record fourth‑quarter revenue (including HanesBrands contribution from Dec. 1–28) and expanded gross margins, showing strong top‑line growth and improved profitability. GlobeNewswire Release
• Positive Sentiment: Raised synergy targets and integration progress: Management said Hanes integration is delivering stronger than expected savings and increased targeted run‑rate synergies, supporting longer‑term margin potential. MSN Article
• Positive Sentiment: Dividend raise: Gildan announced a ~10.2% increase to the quarterly dividend (new quarterly payment $0.249), signaling confidence in cash flow and returning capital to shareholders.
• Neutral Sentiment: Hanes acquisition closed Dec. 1 — results include only one month of Hanes, which complicates quarter‑over‑quarter comparisons but explains substantial top‑line lift; the Hanes Australian business is classified as held for sale. GlobeNewswire Release
• Negative Sentiment: EPS miss: Adjusted EPS of $0.96 missed the consensus of $1.31, which likely disappointed traders expecting stronger near‑term profitability despite higher revenue. Zacks Earnings Article
• Negative Sentiment: FY‑2026 guidance below consensus: Gildan set FY‑2026 EPS guidance of $4.20–$4.40, below the Street (~$4.46), which reduced near‑term earnings visibility and likely pressured the stock. MSN Guidance Story

Hedge Funds Weigh In On Gildan Activewear

A number of large investors have recently made changes to their positions in GIL. Invesco Ltd. raised its position in Gildan Activewear by 6.0% in the 4th quarter. Invesco Ltd. now owns 216,434 shares of the textile maker’s stock worth $13,518,000 after purchasing an additional 12,261 shares during the period. Mercer Global Advisors Inc. ADV purchased a new position in shares of Gildan Activewear during the fourth quarter valued at approximately $383,000. State of Tennessee Department of Treasury grew its stake in shares of Gildan Activewear by 8.8% during the fourth quarter. State of Tennessee Department of Treasury now owns 89,766 shares of the textile maker’s stock valued at $5,865,000 after buying an additional 7,274 shares during the last quarter. Mackenzie Financial Corp raised its holdings in shares of Gildan Activewear by 41.2% in the fourth quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after buying an additional 2,001,279 shares during the period. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in shares of Gildan Activewear in the fourth quarter worth approximately $880,000. 82.83% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Scotiabank reiterated an “outperform” rating on shares of Gildan Activewear in a report on Tuesday, February 3rd. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating and issued a $79.00 target price on shares of Gildan Activewear in a report on Friday, February 20th. Zacks Research downgraded Gildan Activewear from a “hold” rating to a “strong sell” rating in a research report on Monday, February 23rd. TD Securities restated a “buy” rating and set a $77.00 price target on shares of Gildan Activewear in a report on Tuesday, January 27th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Gildan Activewear in a report on Monday, December 29th. Thirteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Gildan Activewear presently has a consensus rating of “Moderate Buy” and an average target price of $80.00.

About Gildan Activewear

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.