Gildan Activewear (NYSE:GIL) Releases Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its quarterly earnings results on Thursday. The textile maker reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.17, Zacks reports. Gildan Activewear had a net margin of 1.28% and a return on equity of 22.00%. The firm had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same quarter in the previous year, the company posted $0.97 EPS. The company’s revenue was up 72.3% compared to the same quarter last year.

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

• Q2 results exceeded expectations on profitability: adjusted EPS rose 32% year over year to $1.28, while adjusted operating margin reached 22.3%, well above the approximately 19.7% guidance.
• Management raised 2026 guidance for adjusted EPS to $4.65–$4.75, adjusted operating margin to approximately 21.8%, and free cash flow to approximately $1 billion, while maintaining its low-20% adjusted EPS CAGR objective for 2026–2028.
• The HanesBrands integration remains ahead of plan, with approximately $100 million of 2026 synergies largely implemented and a targeted $250 million annual run-rate expected over the next three years. The planned sale of Hanes’ Australian business for approximately $490 million is expected to accelerate debt reduction and support the eventual resumption of share repurchases.
• The company expects approximately $220 million in IEEPA tariff refunds, with roughly half viewed as a recurring structural benefit from tariff-free qualifying CAFTA-DR apparel and the non-recurring portion being reinvested in Hanes marketing, promotions, product innovation, and packaging.
• Retail demand and seasonal inventory builds remained soft, particularly in June, prompting the company to move full-year revenue expectations to the low end of its $6.0–$6.2 billion range. Wholesale trends improved and key brands gained share, but management said the broader market remained difficult to call entering the third quarter.

Gildan Activewear Trading Up 5.5%

Gildan Activewear stock traded up $2.88 during trading on Friday, hitting $55.38. The company had a trading volume of 3,246,801 shares, compared to its average volume of 1,309,580. Gildan Activewear has a 1-year low of $46.00 and a 1-year high of $73.69. The company has a current ratio of 2.35, a quick ratio of 1.17 and a debt-to-equity ratio of 1.32. The company’s 50 day simple moving average is $54.45 and its 200-day simple moving average is $59.46. The stock has a market cap of $10.26 billion, a price-to-earnings ratio of 106.50 and a beta of 1.11.

Gildan Activewear Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Thursday, August 20th will be given a dividend of $0.249 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.8%. Gildan Activewear’s dividend payout ratio (DPR) is presently 190.38%.

Key Stories Impacting Gildan Activewear

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

• Positive Sentiment: Scotia raised its price target for GIL from $65 to $67 and upgraded the stock to “sector outperform,” implying approximately 20% upside from the cited market price. BayStreet.CA analyst rating
• Positive Sentiment: Gildan reported second-quarter adjusted earnings of $1.28 per share, beating the $1.11 consensus estimate and rising from $0.97 a year earlier. Revenue from continuing operations reached $1.58 billion, up 72.3% year over year, while operating margin was 11.1% and adjusted operating margin was 22.3%. The company also updated its full-year 2026 guidance. Gildan second-quarter results
• Positive Sentiment: The company declared a quarterly dividend of $0.249 per share, payable September 14 to shareholders of record August 20. The dividend represents an annualized yield of approximately 1.8%, supporting the stock’s income appeal.
• Positive Sentiment: Gildan announced the sale of HanesBrands Australia, a move that could simplify its portfolio and sharpen focus on core operations. Retail Insider report
• Neutral Sentiment: Despite adjusted earnings strength, reported coverage highlighted a $50 million quarterly net loss, and revenue of $1.58 billion was below the $1.61 billion analyst consensus. MarketBeat earnings report
• Neutral Sentiment: Unusually high trading in Gildan put options signals that some investors are positioning for downside, although options activity alone does not establish the stock’s future direction. Put options report
• Negative Sentiment: Rosen Law Firm announced an investigation into potential securities claims alleging that Gildan may have issued materially misleading business information. The investigation could create legal costs, reputational risk and uncertainty for shareholders, although no wrongdoing has been established. Rosen Law Firm investigation

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Smartleaf Asset Management LLC raised its holdings in shares of Gildan Activewear by 161.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock valued at $27,000 after buying an additional 343 shares during the period. Brown Brothers Harriman & Co. boosted its holdings in Gildan Activewear by 867.9% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 513 shares of the textile maker’s stock valued at $30,000 after acquiring an additional 460 shares during the period. CIBC Private Wealth Group LLC grew its position in Gildan Activewear by 169.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 538 shares of the textile maker’s stock valued at $31,000 after acquiring an additional 338 shares in the last quarter. Advisory Services Network LLC purchased a new stake in Gildan Activewear during the third quarter worth about $36,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in Gildan Activewear during the third quarter worth about $44,000. 82.83% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have commented on GIL shares. Scotia lifted their target price on shares of Gildan Activewear from $65.00 to $67.00 and gave the stock a “sector outperform” rating in a research note on Friday. Royal Bank Of Canada restated an “outperform” rating and set a $82.00 price target (up from $78.00) on shares of Gildan Activewear in a report on Friday. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating and set a $77.00 price target on shares of Gildan Activewear in a research report on Friday, May 1st. TD Securities reiterated a “buy” rating on shares of Gildan Activewear in a research report on Tuesday, June 16th. Finally, Weiss Ratings cut Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, May 18th. Thirteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Gildan Activewear currently has an average rating of “Moderate Buy” and an average price target of $79.07.

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.