Earnings

Gildan Updates 2026 Guidance After Third Quarter Sales Reach US$1.47 Billion

The Tip Desk · November 5, 2026 · 2 min read

The apparel maker reported third quarter net sales from continuing operations of US$1.47 billion, a 61.1% increase over the prior year.

Gildan Activewear Inc. (GIL) reported third quarter net sales from continuing operations of US$1.47 billion, which rose 61.1% over the prior year. The company reported GAAP diluted earnings per share from continuing operations of US$1.37 and adjusted diluted EPS from continuing operations of US$1.54, representing increases of 71.3% and 54.0%, respectively.

Despite the year-over-year growth, the results did not meet company expectations. Net sales were lower than the guided US$1.65 billion for the quarter. The company attributed the shortfall to approximately US$100 million in greater-than-anticipated demand softness across both Retail and Wholesale segments, as an expected demand recovery did not materialize. Additionally, product availability and service constraints related to evolving order patterns impacted the Retail segment by approximately US$60 million.

Wholesale sales fell 6.8% over the prior year to US$735 million. The company noted that the year-over-year sales increase was driven by the HanesBrands acquisition, though this was partially offset by lower net selling prices and lower volumes resulting from macroeconomic conditions.

Operating margin for the period was 24.1%, while adjusted operating margin was 27.0%. Cash flow from operating activities reached US$633 million, and free cash flow was US$606 million.

Gildan is progressing with the integration of HanesBrands and has implemented the majority of synergy-capture initiatives planned for 2026. The company expects to realize approximately US$100 million in synergies in 2026 and maintains a target of approximately US$250 million in annual run-rate cost synergies by the end of 2028. The company also completed the sale of HanesBrands Australia on October 26, 2026.

For the full year 2026, the company now expects revenue to be between US$5.4 billion and US$5.5 billion. Updated guidance includes an adjusted operating margin of approximately 20%, adjusted diluted EPS in the range of US$3.70 to US$3.80, and free cash flow between US$700 million and US$750 million.

Gildan withdrew its previously communicated objectives for the 2026–2028 period, citing rapid changes in macroeconomic conditions and the resulting impact on demand. The company intends to provide an updated long-term outlook at an Investor Day in the spring of 2027. The Board of Directors also approved a new normal course issuer bid to repurchase up to 5% of outstanding common shares.

More on GIL

July 30, 2026 Earnings Gildan Net Sales Rise to $1.58 Billion in Second Quarter July 30, 2026 Earnings Gildan Raises Earnings Guidance and Sells HanesBrands Australia April 30, 2026 Earnings Gildan Activewear Reports Net Loss Amid Rising Restructuring Costs

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