Gildan Activewear Stock Earnings Reports

Gildan reported Q1 2026 results with record continuing-operations sales of ~$1.17B (up ~64% YoY), driven primarily by the Hanes Brands acquisition. Adjusted diluted EPS from continuing operations was $0.43, down 27% YoY, reflecting integration-related one-time items and higher share count. Adjusted gross margin (after acquisition fair value step-up adjustments) improved to ~33% in Q1; adjusted operating margin was 14.3% (Q1) but management expects sequential improvement through the year. Management reiterated full-year 2026 guidance: revenue $6.0–$6.2B, adjusted operating margin ~20%, adjusted diluted EPS $4.20–$4.40, CapEx ~3% of sales, and free cash flow above $850M. They remain confident in achieving ~$250M of run-rate synergies over 3 years, including about $100M in 2026. Integration of Hanes into Gildan manufacturing, IT and distribution is progressing; Gildan is relocating Hanes volumes into its lower-cost facilities to capture synergies and support future growth (targeting additional upside beyond the 3-year synergy goal). Management says Bangladesh operations are running normally today and contingency plans exist if regional instability worsens. Net debt was $4.868B at quarter-end (leverage 3.3x); management is pursuing the sale of the Hanes Australia business (HAA) with proceeds to pay down debt and return leverage toward the 1.5–2.5x target. Management expects the temporary customer channel inventory reduction to largely resolve by the end of Q2, with sell‑in shifting into H2; they expect a return to growth in H2 and view 2027 as the year where integration-driven revenue/innovation gains will more fully materialize.