Gildan Activewear (NYSE:GIL) Posts Earnings Results, Beats Estimates By $0.02 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) issued its quarterly earnings results on Thursday. The textile maker reported $0.96 EPS for the quarter, topping the consensus estimate of $0.94 by $0.02, Briefing.com reports. Gildan Activewear had a return on equity of 35.53% and a net margin of 14.13%.The company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the previous year, the business posted $0.83 EPS. The company’s revenue for the quarter was up 31.1% on a year-over-year basis. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• Gildan completed the acquisition of HanesBrands (Dec 1, 2025) and says integration is progressing ahead of plan, raising expected run‑rate cost synergies to $250 million over three years (about $100M in 2026, $100M in 2027 and $50M in 2028).
• Reported record 2025 continuing‑operations results with roughly $3.6 billion of revenue, a 21.5% adjusted operating margin and adjusted diluted EPS of $3.51 (up ~17% year‑over‑year).
• To capture synergies faster, Gildan will close two Hanes textile factories and relocate production into its network, creating short‑term capacity tightness and a planned temporary reduction of inventory in customer channels that will pressure Q1 sales and margins (Q1 adjusted operating margin guided to ~12.9%).
• 2026 continuing‑operations guidance: revenue of $6.0–$6.2 billion, adjusted operating margin ~20%, adjusted diluted EPS of $4.20–$4.40, CapEx ~3% of sales and free cash flow above $850 million; the Hanes Australia unit (HAA) is held for sale with proceeds targeted to accelerate deleveraging toward a 1.5x–2.5x net‑debt/EBITDA target.
• Longer‑term capacity and cost plan includes advancing Phase Two of the Bangladesh textile complex (construction over ~18 months, production late‑2027) and other manufacturing/IT/distribution harmonization efforts intended to reinforce Gildan’s low‑cost, vertically integrated platform.

Gildan Activewear Price Performance

NYSE:GIL traded down $3.26 during mid-day trading on Thursday, hitting $68.02. The company’s stock had a trading volume of 2,269,422 shares, compared to its average volume of 1,177,172. The company has a market capitalization of $12.60 billion, a price-to-earnings ratio of 21.73 and a beta of 1.08. The company has a current ratio of 2.01, a quick ratio of 0.88 and a debt-to-equity ratio of 0.94. Gildan Activewear has a fifty-two week low of $37.16 and a fifty-two week high of $73.69. The stock has a fifty day moving average of $66.48 and a 200-day moving average of $60.55.

Key Headlines Impacting Gildan Activewear

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Beat on Q4 revenue and EPS; revenue rose ~31% year-over-year and adjusted EPS of $0.96 beat consensus, with HanesBrands contributing for December — this supports longer-term scale and top-line growth. GlobeNewswire Release
• Positive Sentiment: Management raised targeted run‑rate synergies from the Hanes acquisition and announced plans to expand capacity (Bangladesh Phase 2), which could improve margins over time. Yahoo Finance
• Neutral Sentiment: HanesBrands’ Australian business has been classified as held for sale and reported as discontinued operations, a bookkeeping/portfolio move with limited near-term cash impact but worth monitoring. GlobeNewswire Release
• Negative Sentiment: FY‑2026 EPS guidance of $4.20–$4.40 was below the street (~$4.46 consensus), and multiple headlines flagged the “lower‑than‑expected” targets — the guidance miss is the primary driver of the share decline. MSN / MarketWatch Coverage
• Negative Sentiment: Zacks lowered its rating to a “strong sell,” adding short‑term negative analyst pressure and likely amplifying the selloff. Zacks

Hedge Funds Weigh In On Gildan Activewear

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC raised its stake in Gildan Activewear by 161.8% during the second quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock worth $27,000 after acquiring an additional 343 shares in the last quarter. Brown Brothers Harriman & Co. grew its holdings in shares of Gildan Activewear by 867.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 513 shares of the textile maker’s stock worth $30,000 after purchasing an additional 460 shares during the last quarter. CIBC Private Wealth Group LLC increased its position in shares of Gildan Activewear by 169.0% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 538 shares of the textile maker’s stock worth $31,000 after purchasing an additional 338 shares in the last quarter. Advisory Services Network LLC bought a new position in Gildan Activewear during the 3rd quarter valued at about $36,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in Gildan Activewear in the third quarter valued at about $44,000. Institutional investors own 82.83% of the company’s stock.

Analyst Upgrades and Downgrades

GIL has been the subject of several research analyst reports. National Bank Financial upped their target price on shares of Gildan Activewear from $92.00 to $97.00 and gave the company an “outperform” rating in a research note on Monday, February 2nd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Gildan Activewear in a research report on Monday, December 29th. Scotiabank reissued an “outperform” rating on shares of Gildan Activewear in a research report on Tuesday, February 3rd. TD Securities reissued a “buy” rating and set a $77.00 target price on shares of Gildan Activewear in a research report on Tuesday, January 27th. Finally, Stifel Nicolaus upped their price target on Gildan Activewear from $75.00 to $80.00 and gave the company a “buy” rating in a report on Monday. Thirteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Gildan Activewear presently has an average rating of “Moderate Buy” and an average price target of $80.00.

Gildan Activewear Company Profile

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.