Gildan Reports Record Revenue as HanesBrands Integration Begins
Net sales from continuing operations rose 63.8% to $1.17 billion in the first quarter.
Gildan Activewear Inc. (GIL), the vertically integrated apparel manufacturer, reported record net sales from continuing operations of $1.17 billion for the first quarter ended March 29, 2026. This result represents a 63.8% increase over the prior year's first quarter.
The growth follows the first full fiscal reporting period in which the results of HanesBrands were fully consolidated into the financial statements of the company. This integration contributed to a rise in adjusted operating income, which reached $166.8 million compared to $135.5 million in the same period last year.
Despite the revenue growth, the company reported a GAAP diluted loss per share from continuing operations of $0.30, compared to a gain of $0.56 a share in the first quarter of 2025. The company's operating margin fell to (0.1)% from 18.2% in the prior year. Adjusted diluted EPS from continuing operations was $0.43 a share, a decrease from $0.59 a share in the previous year.
Costs associated with the HanesBrands acquisition and integration impacted the quarterly results. Restructuring and acquisition-related costs rose to $61.0 million from $5.0 million in the prior year. SG&A expenses also increased to $218.7 million from $87.3 million.
Cash flows from operating activities were negative $279.5 million, compared to negative $142.2 million in the first quarter of 2025. Free cash flow for the period was negative $309.9 million. As of March 29, 2026, the company's net debt stood at $4.87 billion, up from $4.42 billion on December 28, 2025.
Gildan said it is on pace to realize approximately $100 million in synergies in 2026. The company continues to expect annual run-rate cost synergies of approximately $250 million over the next three years.
The company maintained its full year 2026 guidance and its three-year objectives for the 2026–2028 period.