Gildan Activewear (NYSE:GIL) Releases FY 2026 Earnings Guidance

Key Points

• Gildan Activewear updated FY 2026 guidance, projecting EPS of 4.20 to 4.40 and revenue of $6.0 billion to $6.2 billion, both broadly in line with Wall Street expectations.
• The company recently beat quarterly estimates, reporting $0.43 EPS versus the expected $0.36 and revenue of $1.17 billion versus $1.14 billion, while revenue jumped 63.8% year over year.
• Despite the guidance and solid results, the stock is under pressure after a forensic short-seller report alleged channel stuffing and inflated distributor inventory, triggering multiple securities-fraud investigations.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL issued an update on its FY 2026 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 4.200-4.400 for the period, compared to the consensus estimate of 4.290. The company issued revenue guidance of $6.0 billion-$6.2 billion, compared to the consensus revenue estimate of $6.1 billion.

Wall Street Analysts Forecast Growth

Several brokerages have commented on GIL. Zacks Research raised shares of Gildan Activewear from a "strong sell" rating to a "hold" rating in a research note on Friday, May 1st. Scotia reduced their target price on Gildan Activewear from $72.00 to $65.00 and set a "sector outperform" rating on the stock in a report on Wednesday. Scotiabank restated a "sector outperform" rating and issued a $65.00 price target (down from $72.00) on shares of Gildan Activewear in a report on Wednesday. Stifel Nicolaus lifted their price objective on Gildan Activewear from $75.00 to $80.00 and gave the company a "buy" rating in a report on Monday, February 23rd. Finally, TD Securities reiterated a "buy" rating on shares of Gildan Activewear in a research report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Gildan Activewear currently has an average rating of "Moderate Buy" and an average target price of $78.21.

Gildan Activewear Stock Performance

Shares of NYSE:GIL opened at $51.92 on Friday. The company's 50 day moving average price is $58.20 and its two-hundred day moving average price is $61.47. Gildan Activewear has a 12-month low of $46.00 and a 12-month high of $73.69. The company has a quick ratio of 1.17, a current ratio of 2.35 and a debt-to-equity ratio of 1.32. The firm has a market cap of $9.61 billion, a PE ratio of 30.54 and a beta of 1.08.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last issued its earnings results on Thursday, April 30th. The textile maker reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.36 by $0.07. Gildan Activewear had a return on equity of 21.38% and a net margin of 6.10%.The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter last year, the business posted $0.59 EPS. The company's revenue was up 63.8% compared to the same quarter last year. Gildan Activewear has set its FY 2026 guidance at 4.200-4.400 EPS. Equities research analysts predict that Gildan Activewear will post 4.25 earnings per share for the current year.

Gildan Activewear Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Wednesday, May 20th were issued a dividend of $0.249 per share. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. Gildan Activewear's payout ratio is 58.82%.

Key Stories Impacting Gildan Activewear

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

• Negative Sentiment: A forensic research report alleged Gildan may have used channel stuffing and inflated distributor inventory, raising questions about the quality of reported sales and revenue recognition. Article: Gildan Activewear Inc. (GIL) Shares Tumble 18% Amid Activist Forensic Report...
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following the stock drop, adding legal overhang and signaling that investors are treating the allegations as potentially serious. Article: Securities Fraud Investigation Into Gildan Activewear Inc. (GIL) Announced
• Negative Sentiment: Media reports said the shares dropped as much as 25% on the short-seller growth accusations, reinforcing the market’s concern about possible accounting or demand issues. Article: Gildan share price drops as much as 25 per cent on short seller growth accusations
• Negative Sentiment: Additional investigations from other law firms followed, increasing uncertainty around the company’s disclosures and near-term sentiment. Article: Gildan Activewear Investigation Initiated: Levi & Korsinsky Investigates...
• Neutral Sentiment: Before the short-seller controversy, analysts had been constructive, with Scotia trimming its price target to $65 while keeping a sector-outperform rating. Article: Analyst rating update

Institutional Investors Weigh In On Gildan Activewear

A number of institutional investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC increased its stake in Gildan Activewear by 161.8% in the second quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker's stock valued at $27,000 after purchasing an additional 343 shares in the last quarter. Brown Brothers Harriman & Co. raised its stake in Gildan Activewear by 867.9% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 513 shares of the textile maker's stock worth $30,000 after buying an additional 460 shares during the period. CIBC Private Wealth Group LLC boosted its holdings in Gildan Activewear by 169.0% in the third quarter. CIBC Private Wealth Group LLC now owns 538 shares of the textile maker's stock worth $31,000 after acquiring an additional 338 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of Gildan Activewear during the third quarter worth approximately $36,000. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of Gildan Activewear in the 3rd quarter worth $44,000. 82.83% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.