Gildan sales soar to $1.58B after 72% increase

• Gildan reported second-quarter 2026 net sales of $1.58 billion, up 72.3% year over year.
• Adjusted diluted EPS increased 32% to $1.28, while free cash flow reached $326 million.
• The company updated its 2026 outlook and agreed to sell HanesBrands Australia for about A$700 million.

Gildan Activewear (NYSE:GIL) reported second-quarter 2026 net sales from continuing operations of $1.58 billion, up 72.3% year over year, with adjusted diluted EPS increasing to $1.28.

The company reported an operating margin of 11.1% and adjusted operating margin of 22.3%, while GAAP diluted EPS from continuing operations was $0.49 compared with the prior-year period.

Gildan generated $347 million in operating cash flow and $326 million in free cash flow during the quarter, while receiving guidance support from expected IEEPA tariff refunds and structural cost benefits.

The company expects 2026 revenue at the low end of its $6–$6.2 billion range and adjusted EPS of $4.65–$4.75.

Gildan expects adjusted operating margin of about 21.8% and free cash flow of approximately $1 billion for 2026, while targeting a reduction in net leverage from 3.2x at mid-2026 toward its 1.5x–2.5x target range.

The company also agreed to sell HanesBrands Australia for about A$700 million, or approximately $490 million, with proceeds expected to support debt reduction and ongoing cost synergy initiatives.