revenue
6000 $million
FY 2026
official guidance
GILDAN ACTIVEWEAR INC.
Last · TorontoC$67.72-2.03 (-2.91%)close · yahoo · 35h ago
Market capC$12.5B185.2M sh
P/E · TTM38.0fwd 8.9 · eps 1.78
Beta1.08vs S&P 500
Div yield1.97%annual · TTM
52w range
C$65.15C$100.44
Volume810.8Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Hold: Q2 adjusted EPS rose 32% to $1.28 and 2026 adjusted EPS guidance increased to $4.65-$4.75, but the upgrade is heavily influenced by approximately $220 million of IEEPA tariff refunds, with roughly half reinvested. The underlying opportunity is credible—21.8% adjusted operating margin guidance, $1 billion free cash flow and $250 million of targeted Hanes synergies—but retail softness, 3.2x leverage and elevated receivables keep this from being a clean buy.
Themes
- Hanes Integration
- Tariff Refunds
- Retail Softness
- Wholesale Share Gains
- Deleveraging
- Working Capital
Near term
Q3 guidance calls for approximately $1.65 billion of revenue and 26% adjusted operating margin, with most tariff refunds expected to be recorded in the quarter.
Q3 and Q4 must demonstrate that Wholesale and Retail can return to growth after Q2 pro forma sales declined, including the recovery of delayed fleece orders and seasonal programs.
The HAA divestiture is expected to close in the second half of 2026 for approximately USD 490 million, with proceeds earmarked for debt reduction and potentially enabling share repurchases.
The roughly $110 million nonrecurring portion of tariff refunds will be reinvested across retail marketing, promotions, product innovation and packaging in Q3-Q4; returns on that spending remain unproven.
Longer term
Management maintains its low-20% adjusted diluted EPS CAGR objective for 2026-2028, supported by the stated $250 million of Hanes cost synergies: $100 million in 2026, $100 million in 2027 and $50 million in 2028.
The structural tariff benefit applies to qualifying CAFTA-DR apparel, while Bangladesh and Vietnam production remains subject to 10% and 12.5% Section 301 tariffs, respectively; sourcing mix remains important to normalized margins.
Wholesale share gains in Comfort Colors, American Apparel, Champion, ring-spun and fleece support the competitive thesis, but the broader market remains down low single digits and management did not quantify sustainable organic growth.
Deleveraging from 3.2x net debt to pro forma adjusted EBITDA toward the 1.5x-2.5x target range is central to restoring financial flexibility and buybacks.
Red flags
Approximately half of the $220 million tariff refund is nonrecurring, making the 2026 earnings increase less representative of sustainable cash earnings despite management framing the 21.8% margin as a new base.
Retail softness became more pronounced in June, with broad-based weaker demand and lower seasonal inventory builds at large customers; the low end of the $6.0-$6.2 billion revenue range implies a strong Q4.
Analysts pressed management on elevated DSOs and off-balance-sheet receivable factoring. Management cited improving sequential trends and a sub-30% working-capital target, but did not provide a durable DSO target or detailed aging metrics.
Net debt remains approximately $4.69 billion and interest expense is materially higher following the Hanes acquisition; the buyback is contingent on successful HAA closing and leverage reduction.
The Hanes brand refresh and product rationalization are largely qualitative so far, while the planned marketing and innovation reinvestment could raise SG&A before demand benefits materialize.
Forward outlook
operating margin
21.8 pct
FY 2026
official guidance
adjusted eps
4.65–4.75 $per share
FY 2026
official guidance
revenue
1650 $million
Q3 2026
official guidance
operating margin
26 pct
Q3 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$1.60
Est. revenue
1.6B
Earnings transcripts
- Issuer IR
Earnings call transcript
GILDAN ACTIVEWEAR INC.
- Issuer IR
Earnings call transcript
GILDAN ACTIVEWEAR INC.
- Issuer IR
Earnings call transcript
GILDAN ACTIVEWEAR INC.
- Issuer IR
Earnings call transcript
GILDAN ACTIVEWEAR INC.
- Issuer webcast
Earnings call transcript
GILDAN ACTIVEWEAR INC.
- Issuer webcast
Earnings call transcript
GILDAN ACTIVEWEAR INC.
Press & signals
- GlobeNewswire
Gildan Reports Strong Second Quarter Results, Updates its Full Year 2026 Guidance and Announces the Sale of HanesBrands Australia
Documents
FormReporting forFiledFlags