Gildan Activewear (NYSE:GIL) Announces Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) released its quarterly earnings data on Thursday. The textile maker reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.17, Zacks reports. The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.61 billion. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. Gildan Activewear’s revenue for the quarter was up 72.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.97 earnings per share.

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

• Q2 results exceeded expectations on profitability: adjusted EPS rose 32% year over year to $1.28, while adjusted operating margin reached 22.3%, well above the approximately 19.7% guidance.
• Management raised 2026 guidance for adjusted EPS to $4.65–$4.75, adjusted operating margin to approximately 21.8%, and free cash flow to approximately $1 billion, while maintaining its low-20% adjusted EPS CAGR objective for 2026–2028.
• The HanesBrands integration remains ahead of plan, with approximately $100 million of 2026 synergies largely implemented and a targeted $250 million annual run-rate expected over the next three years. The planned sale of Hanes’ Australian business for approximately $490 million is expected to accelerate debt reduction and support the eventual resumption of share repurchases.
• The company expects approximately $220 million in IEEPA tariff refunds, with roughly half viewed as a recurring structural benefit from tariff-free qualifying CAFTA-DR apparel and the non-recurring portion being reinvested in Hanes marketing, promotions, product innovation, and packaging.
• Retail demand and seasonal inventory builds remained soft, particularly in June, prompting the company to move full-year revenue expectations to the low end of its $6.0–$6.2 billion range. Wholesale trends improved and key brands gained share, but management said the broader market remained difficult to call entering the third quarter.

Gildan Activewear Stock Up 5.8%

Shares of Gildan Activewear stock traded up $3.03 during trading on Friday, reaching $55.53. The company had a trading volume of 1,202,684 shares, compared to its average volume of 1,427,280. The company has a debt-to-equity ratio of 1.32, a quick ratio of 1.17 and a current ratio of 2.35. Gildan Activewear has a fifty-two week low of $46.00 and a fifty-two week high of $73.69. The firm’s fifty day moving average is $54.51 and its 200-day moving average is $59.48. The company has a market cap of $10.28 billion, a price-to-earnings ratio of 32.61 and a beta of 1.11.

Gildan Activewear Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Thursday, August 20th will be given a $0.249 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. Gildan Activewear’s payout ratio is presently 58.82%.

Institutional Trading of Gildan Activewear

Institutional investors and hedge funds have recently bought and sold shares of the company. Brown Brothers Harriman & Co. grew its position in shares of Gildan Activewear by 867.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 513 shares of the textile maker’s stock worth $30,000 after acquiring an additional 460 shares in the last quarter. CIBC Private Wealth Group LLC lifted its stake in Gildan Activewear by 169.0% during the third quarter. CIBC Private Wealth Group LLC now owns 538 shares of the textile maker’s stock worth $31,000 after purchasing an additional 338 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in Gildan Activewear by 161.8% in the second quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock worth $27,000 after purchasing an additional 343 shares during the period. Advisory Services Network LLC bought a new stake in Gildan Activewear during the third quarter valued at $36,000. Finally, Measured Wealth Private Client Group LLC bought a new stake in Gildan Activewear during the third quarter valued at $44,000. Institutional investors and hedge funds own 82.83% of the company’s stock.

Analyst Upgrades and Downgrades

GIL has been the subject of several recent research reports. Scotia lowered their price target on Gildan Activewear from $72.00 to $65.00 and set a “sector outperform” rating for the company in a report on Wednesday, June 17th. Stifel Nicolaus set a $83.00 target price on Gildan Activewear in a research report on Friday. Zacks Research upgraded Gildan Activewear from a “strong sell” rating to a “hold” rating in a research note on Friday, May 1st. Scotiabank reiterated a “sector outperform” rating and set a $67.00 target price (up from $65.00) on shares of Gildan Activewear in a report on Friday. Finally, Weiss Ratings lowered Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, May 18th. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Gildan Activewear has an average rating of “Moderate Buy” and a consensus target price of $78.57.

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.