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

Key Points

• Gildan beat Q1 expectations with adjusted EPS of $0.43 versus a $0.36 consensus and reported record revenue of $1.17 billion, up ~63.8% YoY largely due to the HanesBrands acquisition.
• The company kept its FY‑2026 guidance intact — roughly $6.0–$6.2 billion in revenue and $4.20–$4.40 adjusted EPS — and expects about $250 million of run‑rate cost synergies over three years (≈$100 million in 2026).
• Near‑term financial risks include a GAAP diluted loss of $0.30, net debt of $4.868 billion with 3.3x leverage, a planned sale of Hanes Australasia to pay down debt, and paused buybacks until leverage falls to ~2x, while ongoing litigation creates additional downside risk.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL issued its quarterly earnings data on Thursday. The textile maker reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.07, Zacks reports. Gildan Activewear had a net margin of 6.10% and a return on equity of 24.48%. The company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.14 billion. During the same quarter in the previous year, the firm posted $0.59 earnings per share. Gildan Activewear's revenue for the quarter was up 63.8% on a year-over-year basis. 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 Down 0.8%

Shares of NYSE GIL traded down $0.52 during trading on Friday, hitting $61.47. 1,574,837 shares of the company traded hands, compared to its average volume of 1,078,575. The business's fifty day moving average is $60.14 and its 200 day moving average is $61.51. Gildan Activewear has a fifty-two week low of $46.00 and a fifty-two week high of $73.69. The firm 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 business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Wednesday, May 20th will be issued a dividend of $0.249 per share. The ex-dividend date 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 currently 38.17%.

Key Gildan Activewear News

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

Analysts Set New Price Targets

A number of analysts have commented on the stock. Scotiabank upped their price target on shares of Gildan Activewear from $72.00 to $74.00 and gave the company a "sector outperform" rating in a research report on Monday, March 2nd. TD Securities reaffirmed a "buy" rating and set a $77.00 price target on shares of Gildan Activewear in a research report on Tuesday, January 27th. Royal Bank Of Canada cut their price target on shares of Gildan Activewear from $79.00 to $78.00 and set an "outperform" rating on the stock in a research report on Monday, March 2nd. National Bank Financial upped their price target on shares of 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 price target on shares of Gildan Activewear from $70.00 to $78.00 and gave the company an "outperform" rating in a research report on Monday, January 26th. Thirteen 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 presently has a consensus rating of "Moderate Buy" and an average target price of $79.92.

Hedge Funds Weigh In On Gildan Activewear

Several institutional investors have recently made changes to their positions in GIL. Caisse de depot et placement du Quebec raised its holdings in shares of Gildan Activewear by 1,695.7% during the fourth quarter. Caisse de depot et placement du Quebec now owns 6,240,014 shares of the textile maker's stock valued at $390,539,000 after purchasing an additional 5,892,514 shares during the period. Mackenzie Financial Corp raised its holdings in shares of Gildan Activewear by 41.2% during the fourth quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker's stock valued at $429,382,000 after purchasing an additional 2,001,279 shares during the period. BCV Asset Management Inc. acquired a new position in shares of Gildan Activewear during the fourth quarter valued at about $93,803,000. Lazard Asset Management LLC raised its holdings in shares of Gildan Activewear by 95.2% during the third quarter. Lazard Asset Management LLC now owns 2,799,309 shares of the textile maker's stock valued at $161,749,000 after purchasing an additional 1,364,953 shares during the period. Finally, Millennium Management LLC acquired a new position in shares of Gildan Activewear during the fourth quarter valued at about $83,000,000. Institutional investors and hedge funds 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.

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