Gildan Activewear (TSE:GIL) Stock Price Down 22.9% - What's Next?

Key Points

• Gildan shares fell 22.9% to C$46.60 in heavy trading, after the company reported third-quarter revenue of C$2.08 billion that missed sales targets and cut its FY26 outlook amid macroeconomic headwinds.
• Several brokerages lowered their price targets, including Scotia and Desjardins, though both maintained outperform/buy ratings. Analysts’ average rating remains “Buy,” with an average target of C$80.25.
• Gildan authorized a share buyback plan, which may support shareholder returns and signal confidence in the business; the announcement did not specify the plan’s size.

Gildan Activewear Inc. (TSE:GIL - Get Free Report) NYSE: GIL's share price was down 22.9% on Thursday. The company traded as low as C$43.69 and last traded at C$46.60. 1,680,845 shares changed hands during mid-day trading, an increase of 157% from the average daily volume of 652,972 shares. The stock had previously closed at C$60.44.

Key Stories Impacting Gildan Activewear

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

• Positive Sentiment: Gildan authorized a share buyback plan, which could support shareholder returns and signal confidence in the business. The announcement does not specify the plan’s size here. Gildan Activewear authorizes a buyback plan
• Neutral Sentiment: Desjardins maintained its Buy rating despite lowering its price target, offering a more constructive view than the target reduction alone suggests. Scotia also cut its target. Desjardins maintains Buy rating Desjardins cuts price target Scotia cuts price target
• Negative Sentiment: The company reported third-quarter EPS of C$2.18 and revenue of C$2.08 billion, but sales fell short of targets. Its reduced FY26 outlook, attributed to macro headwinds and rapidly changing conditions, raises concerns about near-term demand and earnings. Gildan cuts outlook and misses third-quarter sales targets Gildan cuts FY26 outlook
• Negative Sentiment: A securities class action is pending, with a December 14, 2026 deadline for investors seeking lead-plaintiff status. The litigation adds uncertainty, though the notice does not establish wrongdoing. Securities class action notice

Analysts Set New Price Targets

A number of brokerages recently commented on GIL. National Bank Financial lowered their price target on shares of Gildan Activewear from C$107.00 to C$98.00 and set an "outperform" rating for the company in a report on Monday, October 19th. Scotia reduced their price objective on Gildan Activewear from C$67.00 to C$53.00 and set a "sector outperform" rating on the stock in a research note on Tuesday. Finally, Desjardins decreased their price objective on Gildan Activewear from C$108.00 to C$90.00 and set a "buy" rating on the stock in a research report on Tuesday. Four equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average target price of C$80.25.

Gildan Activewear Price Performance

The company has a debt-to-equity ratio of 145.29, a quick ratio of 0.87 and a current ratio of 1.93. The company has a market capitalization of C$9.03 billion, a P/E ratio of 95.61, a P/E/G ratio of 4.55 and a beta of 1.63. The firm's fifty day moving average is C$62.54 and its 200 day moving average is C$76.89.

Gildan Activewear (TSE:GIL - Get Free Report) NYSE: GIL last announced its quarterly earnings data on Thursday, November 5th. The company reported C$2.18 earnings per share (EPS) for the quarter. Gildan Activewear had a net margin of 1.33% and a return on equity of 2.12%. The business had revenue of C$2.08 billion during the quarter. As a group, analysts predict that Gildan Activewear Inc. will post 4.55 earnings per share for the current fiscal year.

Gildan Activewear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 14th were paid a dividend of $0.2490 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, August 20th. Gildan Activewear's dividend payout ratio (DPR) is currently 186.27%.

Insider Transactions at Gildan Activewear

In related news, insider Maria Andrea Pirie Woodbridge sold 8,000 shares of the business's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of C$75.93, for a total transaction of C$607,440.00. Following the completion of the transaction, the insider owned 2,243 shares in the company, valued at C$170,310.99. The trade was a 78.10% decrease in their position. 2.26% of the stock is currently owned by insiders.

Gildan Activewear Company Profile

Gildan is a leading manufacturer of everyday basic apparel. The Company's product offering includes activewear, underwear, socks, and intimates sold to a broad range of customers, including wholesale distributors, screenprinters, embellishers, retailers or e-commerce platforms, as well as global lifestyle brand companies and directly to consumers. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan, Hanes, Comfort Colors, American Apparel, ALLPRO, GOLDTOE, Peds, Bali, Playtex, Maidenform, Bonds, as well as Champion which is under an exclusive licensing agreement for the printwear channel in the U.S.

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