Gildan Q3 sales surge 61% to $1.47B, missing outlook

Gildan Activewear (NYSE:GIL) reported third-quarter 2026 sales of $1.47 billion, up 61.1% year over year following its HanesBrands acquisition, but below its approximately $1.65 billion forecast.

The increase reflected the acquisition, as sales declined against prior-year pro forma comparisons of $1.61 billion, with weaker demand affecting both Wholesale and Retail operations.

GAAP diluted EPS from continuing operations increased to $1.37 from $0.80, while adjusted diluted EPS rose 54% to $1.54 from $1.00; operating income reached $354 million, compared with $192 million a year earlier.

Gildan reduced its 2026 revenue forecast to $5.4 billion–$5.5 billion from $6 billion–$6.2 billion, lowered adjusted operating margin guidance to approximately 20% from 21.8% and cut adjusted EPS guidance to $3.70–$3.80 from $4.65–$4.75.

The company also completed the sale of HanesBrands Australia on October 26 for approximately A$700 million (US$490 million), using the net proceeds to repay debt, and approved a share repurchase programme covering up to 5% of outstanding shares.

Following the November 5 announcement, Gildan shares fell approximately 15.2% in premarket trading.

Gildan manufactures and sells apparel, including T-shirts, activewear, underwear and socks, through brands such as Gildan, Hanes, American Apparel and Comfort Colors, while integrating HanesBrands operations to reduce costs and expand its manufacturing network.