Gildan Activewear (NYSE:GIL) Posts Quarterly Earnings Results, Misses Expectations By $0.35 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) issued its earnings results on Thursday. The textile maker reported $0.96 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.31 by ($0.35), Briefing.com reports. Gildan Activewear had a return on equity of 35.53% and a net margin of 14.13%.The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period last year, the firm posted $0.83 earnings per share. The company’s revenue for the quarter was up 31.1% compared to the same quarter last year. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• Gildan completed the acquisition of HanesBrands (Dec 1, 2025) and says integration is progressing ahead of plan, raising expected run?rate cost synergies to $250 million over three years (about $100M in 2026, $100M in 2027 and $50M in 2028).
• Reported record 2025 continuing?operations results with roughly $3.6 billion of revenue, a 21.5% adjusted operating margin and adjusted diluted EPS of $3.51 (up ~17% year?over?year).
• To capture synergies faster, Gildan will close two Hanes textile factories and relocate production into its network, creating short?term capacity tightness and a planned temporary reduction of inventory in customer channels that will pressure Q1 sales and margins (Q1 adjusted operating margin guided to ~12.9%).
• 2026 continuing?operations guidance: revenue of $6.0–$6.2 billion, adjusted operating margin ~20%, adjusted diluted EPS of $4.20–$4.40, CapEx ~3% of sales and free cash flow above $850 million; the Hanes Australia unit (HAA) is held for sale with proceeds targeted to accelerate deleveraging toward a 1.5x–2.5x net?debt/EBITDA target.
• Longer?term capacity and cost plan includes advancing Phase Two of the Bangladesh textile complex (construction over ~18 months, production late?2027) and other manufacturing/IT/distribution harmonization efforts intended to reinforce Gildan’s low?cost, vertically integrated platform.

Gildan Activewear Trading Down 2.3%

Shares of GIL traded down $1.58 during trading hours on Friday, reaching $67.51. 512,529 shares of the company traded hands, compared to its average volume of 1,189,356. The stock’s fifty day moving average price is $66.57 and its 200 day moving average price is $60.61. The company has a current ratio of 2.01, a quick ratio of 0.88 and a debt-to-equity ratio of 0.94. The firm has a market cap of $12.50 billion, a price-to-earnings ratio of 21.60 and a beta of 1.08. Gildan Activewear has a 12-month low of $37.16 and a 12-month high of $73.69.

Gildan Activewear Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, April 13th. Stockholders of record on Thursday, March 19th will be paid a dividend of $0.249 per share. This is an increase from Gildan Activewear’s previous quarterly dividend of $0.23. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, March 19th. Gildan Activewear’s payout ratio is presently 28.75%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on GIL. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $79.00 price objective (up from $71.00) on shares of Gildan Activewear in a report on Tuesday. Weiss Ratings restated a “buy (b)” rating on shares of Gildan Activewear in a research report on Monday, December 29th. Canadian Imperial Bank of Commerce reiterated an “outperform” rating and set a $79.00 price objective on shares of Gildan Activewear in a research report on Friday, February 20th. TD Securities restated a “buy” rating and issued a $77.00 target price on shares of Gildan Activewear in a report on Tuesday, January 27th. Finally, Stifel Nicolaus increased their price target on shares of Gildan Activewear from $75.00 to $80.00 and gave the company a “buy” rating in a report on Monday. Thirteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $80.00.

Key Gildan Activewear News

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

• Positive Sentiment: Q4 beat and strong top-line: Gildan reported record fourth?quarter revenue of $1.08B and adjusted EPS of $0.96 (above consensus), with revenue up ~31% YoY — driven in part by the HanesBrands contribution. Gildan Reports Record Fourth Quarter Revenue and Adjusted Diluted EPS
• Positive Sentiment: Integration synergies accelerating: Management said HanesBrands integration is delivering stronger-than-expected cost savings and raised targeted run?rate synergies, which supports margin recovery over time. Gildan Activewear Sees Stronger Savings From HanesBrands Integration
• Positive Sentiment: Dividend increase: Gildan raised its quarterly dividend ~10.2% to $0.249 per share (annualized yield ~1.4%), signaling confidence in cash flow and returning capital to shareholders.
• Neutral Sentiment: Strategic investments and disposals: Company plans to expand manufacturing (Bangladesh Phase 2) and has classified Hanes’ Australian business as held for sale — moves that reshape asset base but have mid?term implications. Gildan Reports Record Fourth Quarter Revenue and Adjusted Diluted EPS
• Negative Sentiment: Guidance below Street expectations: Gildan set FY?2026 EPS guidance of $4.20–$4.40, under the consensus (~$4.46), prompting concerns the company is being conservative on near?term profit recovery despite the integration. Gildan Sets Lower-Than-Expected 2026 Targets After Sluggish Quarter
• Negative Sentiment: “Sluggish quarter” narrative and near?term uncertainty: Some coverage highlights a softer underlying quarter and the need to absorb Hanes integration costs and seasonality — factors that likely weigh on sentiment and near?term multiple compression. Gildan Sets Lower-Than-Expected 2026 Targets After Sluggish 4Q (MarketWatch)

Hedge Funds Weigh In On Gildan Activewear

A number of hedge funds have recently added to or reduced their stakes in GIL. Caisse de depot et placement du Quebec raised its holdings in Gildan Activewear by 1,695.7% in the fourth quarter. Caisse de depot et placement du Quebec now owns 6,240,014 shares of the textile maker’s stock worth $390,539,000 after purchasing an additional 5,892,514 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Gildan Activewear by 41.2% during the 4th quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after acquiring an additional 2,001,279 shares in the last quarter. BCV Asset Management Inc. purchased a new stake in Gildan Activewear during the fourth quarter valued at approximately $93,803,000. Lazard Asset Management LLC lifted its position in 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 acquiring an additional 1,364,953 shares during the last quarter. Finally, Millennium Management LLC acquired a new stake in Gildan Activewear in the fourth quarter valued at approximately $83,000,000. 82.83% of the stock is currently owned by institutional investors.

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.