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

Key Points

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Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL posted its 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 return on equity of 21.38% and a net margin of 6.10%.Gildan Activewear's revenue for the quarter was up 72.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.97 earnings per share.

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 Stock Performance

Gildan Activewear stock traded up $1.15 during mid-day trading on Thursday, reaching $52.40. 3,843,140 shares of the company were exchanged, compared to its average volume of 1,205,932. The firm's 50-day simple moving average is $54.51 and its two-hundred day simple moving average is $59.48. Gildan Activewear has a twelve month low of $46.00 and a twelve month high of $73.69. The firm has a market cap of $9.70 billion, a PE ratio of 30.82 and a beta of 1.11. The company has a debt-to-equity ratio of 1.32, a quick ratio of 1.17 and a current ratio of 2.35.

Gildan Activewear Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.249 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, August 20th. Gildan Activewear's dividend payout ratio (DPR) is presently 58.82%.

Wall Street Analysts Forecast Growth

GIL has been the subject of a number of research reports. Weiss Ratings cut Gildan Activewear from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 18th. Stifel Nicolaus set a $80.00 target price on shares of Gildan Activewear and gave the stock a "buy" rating in a research report on Monday, July 20th. Scotiabank reaffirmed a "sector outperform" rating and issued a $65.00 target price (down from $72.00) on shares of Gildan Activewear in a report on Wednesday, June 17th. TD Securities reiterated a "buy" rating on shares of Gildan Activewear in a research report on Tuesday, June 16th. Finally, Royal Bank Of Canada reiterated an "outperform" rating on shares of Gildan Activewear in a research note on Wednesday, June 17th. Thirteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $78.21.

Institutional Investors Weigh In On Gildan Activewear

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

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.

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