TCF POST Report
MONTREAL — Gildan Activewear Inc. reported a 72.3% surge in second-quarter net sales to $1.58 billion, driven by the integration of the HanesBrands acquisition. Alongside strong top-line growth, the company announced the sale of HanesBrands Australia, highlighted the pivotal role of its Asian manufacturing hubs, and detailed strong product performance across its leading fashion and basic apparel brands.
Highlights
- Net Sales & Earnings: Net sales reached $1.58 billion for the quarter ended June 28, 2026. Adjusted diluted EPS rose 32.0% to $1.28, while adjusted operating margin stood at 22.3% ($352.3 million).
- Manufacturing Facilities: Having manufacturing facilities in Bangladesh, Vietnam, and Indonesia, Gildan is now advancing development on its second textile facility in Bangladesh, with initial production slated for late 2027.
- Tariff Recoveries: Gildan expects to recover $220 million in non-recurring IEEPA tariff refunds through U.S. Customs and Border Protection processes, which partly relate to its Asian supply chain operations.
“We continue to make excellent progress integrating HanesBrands and capturing synergies, while leveraging the combined strength of our brands, manufacturing network, and commercial capabilities, and investing strategically in innovation,” said Glenn J. Chamandy, Gildan’s President and CEO. “While we remain mindful of the external environment and given the strength of our business fundamentals and the momentum we are building, our focus could not be clearer: control what we can control, execute our strategy, capture the significant opportunities ahead and drive profitable growth and long-term shareholder value.”
Fashion, Brands, and Products
Gildan’s portfolio expansion through HanesBrands and its organic product lines continue to drive robust momentum across core fashion and retail segments:
- Wholesale Innovation & Growth: Despite proactive inventory rightsizing that brought wholesale sales to $769.4 million, Gildan achieved continuous market share gains in key growth categories such as ringspun cotton and fleece through targeted product innovation.
- Iconic Fashion & Lifestyle Brands: Premium fashion and consumer brands—including Comfort Colors®, American Apparel®, and Champion®—delivered strong double-digit growth, reinforcing brand momentum across wholesale channels.
- Retail & Innerwear Portfolio: Retail sales reached $813.1 million, bolstered by iconic brands and innerwear lines acquired through HanesBrands, including Hanes®, Bali®, Playtex®, Maidenform®, and Bonds®, alongside exclusive licensing agreements for Champion®.
Strategic Portfolios
- Gildan entered into a definitive agreement to sell HanesBrands Australia (HAA) for approximately A$700 million (~$490 million USD), with net proceeds dedicated to paying down debt. Total net debt stood at $4.69 billion (leverage ratio of 3.2x).
- The company expects full-year net sales at the low end of $6.0 billion to $6.2 billion, an adjusted operating margin of 21.8%, adjusted diluted EPS between $4.65 and $4.75, and free cash flow of approximately $1.0 billion.
