Gildan Activewear (NYSE:GIL) Reaches New 1-Year Low After Earnings Miss

Key Points

• Gildan’s third-quarter results were mixed: sales from continuing operations rose 61.1% year over year to $1.47 billion and EPS increased to $1.54, but earnings missed analyst estimates and reports also noted a revenue miss.
• Shares fell sharply after the earnings announcement, reaching a new 52-week low; the article reports a last trade of $31.82 versus a prior close of $43.27.
• Several law firms publicized a securities class action alleging, among other claims, that Gildan pulled forward about $500 million in apparel revenue through channel stuffing. The claims are allegations, not established findings, and the lead-plaintiff deadline is December 14, 2026.

Gildan Activewear, Inc. (NYSE:GIL - Get Free Report) TSE: GIL's share price reached a new 52-week low during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $33.10 and last traded at $31.8180, with a volume of 189,072 shares changing hands. The stock had previously closed at $43.27.

The textile maker reported $1.54 EPS for the quarter, missing analysts' consensus estimates of $1.60 by ($0.06). Gildan Activewear had a return on equity of 21.03% and a net margin of 1.28%.

Key Stories Impacting Gildan Activewear

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

• Positive Sentiment: Third-quarter net sales from continuing operations rose 61.1% year over year to $1.47 billion. Operating margin was 24.1%, and adjusted operating margin was 27.0%. Earnings per share increased to $1.54 from $1.00 a year earlier. The company also updated its 2026 guidance, though the release summary provided no details on the direction of that revision. Gildan third-quarter results and guidance
• Neutral Sentiment: The quarter’s $1.54 EPS fell short of analyst estimates of $1.57–$1.60, and Zacks also reported a revenue miss. The earnings shortfall tempers the strong sales and margin figures. Zacks earnings report
• Negative Sentiment: Multiple law firms publicized a securities class action against Gildan concerning investors who acquired shares from February 19, 2025, through June 15, 2026. The lawsuit alleges, among other things, that the company pulled roughly $500 million of apparel revenue forward through channel stuffing, and raises questions about internal controls. These are allegations, not established findings; the lead-plaintiff deadline is December 14, 2026. Class action allegations and deadline

Analyst Ratings Changes

GIL has been the subject of several recent analyst reports. TD reduced their target price on Gildan Activewear from $80.00 to $54.00 and set a "buy" rating for the company in a report on Thursday, September 24th. Citigroup reiterated a "neutral" rating on shares of Gildan Activewear in a research report on Tuesday, August 4th. BMO Capital Markets set a $64.00 price target on Gildan Activewear and gave the company an "outperform" rating in a report on Monday, October 26th. Stifel Nicolaus set a $83.00 target price on shares of Gildan Activewear and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Gildan Activewear in a research report on Thursday, August 13th. Ten research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $69.00.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Bank of America Corp DE purchased a new position in Gildan Activewear during the second quarter worth about $65,193,000. VELA Investment Management LLC boosted its position in shares of Gildan Activewear by 42.5% in the 2nd quarter. VELA Investment Management LLC now owns 107,941 shares of the textile maker's stock worth $5,570,000 after buying an additional 32,171 shares in the last quarter. Nykredit A S acquired a new position in shares of Gildan Activewear during the 2nd quarter valued at about $2,389,000. Bank of New York Mellon Corp acquired a new stake in Gildan Activewear in the 2nd quarter valued at $11,651,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in Gildan Activewear during the 2nd quarter worth approximately $234,764,000. 82.83% of the stock is owned by institutional investors.

Gildan Activewear Trading Down 25.3%

The company has a quick ratio of 1.01, a current ratio of 1.93 and a debt-to-equity ratio of 1.15. The firm's 50 day simple moving average is $44.58 and its two-hundred day simple moving average is $55.45. The stock has a market cap of $5.98 billion, a P/E ratio of 61.76 and a beta of 1.15.

Gildan Activewear Company Profile

Gildan Activewear Inc is a Montreal, Quebec-based apparel manufacturer that produces and sells everyday basic clothing for consumers and businesses. The company's product portfolio includes activewear, T-shirts, fleece garments, underwear, socks and hosiery, as well as other apparel basics.

Gildan sells products primarily through wholesale distributors and screen printers, who supply decorated apparel to businesses, schools, teams, organizations and retailers. Its portfolio includes the Gildan, American Apparel, Comfort Colors, Gold Toe and Anvil brands.

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