Gildan Activewear Reports Net Loss Amid Rising Restructuring Costs
The apparel manufacturer reported a net loss of 65.8 million U.S. dollars for the first quarter of 2026
Gildan Activewear Inc. (GIL), a vertically integrated manufacturer of basic apparel, reported a net loss of 65.8 million U.S. dollars for the three months ended March 29, 2026. This result follows a net earnings of 84.7 million U.S. dollars during the same period in the prior year.
Net sales rose to 1.17 billion U.S. dollars from 711.7 million U.S. dollars in the first quarter of 2025. Gross profit increased to 278.4 million U.S. dollars from 221.9 million U.S. dollars. However, the company's operating income fell to an operating loss of 1.3 million U.S. dollars, compared to an operating income of 129.6 million U.S. dollars in the previous year.
The decline in operating performance was driven by a sharp increase in expenses. Selling, general and administrative expenses rose to 218.7 million U.S. dollars from 87.3 million U.S. dollars. Additionally, restructuring and acquisition-related costs climbed to 61 million U.S. dollars, up from 5 million U.S. dollars in the first quarter of 2025.
Financial expenses, net, also increased to 66.7 million U.S. dollars from 29.9 million U.S. dollars. The company's total net loss included a 10.7 million U.S. dollars loss from discontinued operations, net of tax.
On the balance sheet, the company's total assets remained relatively flat at 10.5 billion U.S. dollars, compared to 10.5 billion U.S. dollars at the end of 2025. Cash and cash equivalents decreased to 237.1 million U.S. dollars from 284.5 million U.S. dollars. Long-term debt rose to 4.3 billion U.S. dollars from 3.9 billion U.S. dollars.
Total equity attributable to shareholders declined to 3.4 billion U.S. dollars from 3.6 billion U.S. dollars. The company reported dividends payable of 45.8 million U.S. dollars, whereas no dividends were payable at the end of December 2025.