Gildan Activewear (NYSE:GIL) Announces Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) issued its earnings results on Thursday. The textile maker reported $1.28 EPS for the quarter, topping the consensus estimate of $1.11 by $0.17, Zacks reports. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. During the same quarter last year, the company posted $0.97 EPS. The firm’s revenue was up 72.3% compared to the same quarter last year.

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

• Q2 results exceeded expectations on profitability: adjusted EPS rose 32% year over year to $1.28, while adjusted operating margin reached 22.3%, well above the approximately 19.7% guidance.
• Management raised 2026 guidance for adjusted EPS to $4.65–$4.75, adjusted operating margin to approximately 21.8%, and free cash flow to approximately $1 billion, while maintaining its low-20% adjusted EPS CAGR objective for 2026–2028.
• The HanesBrands integration remains ahead of plan, with approximately $100 million of 2026 synergies largely implemented and a targeted $250 million annual run-rate expected over the next three years. The planned sale of Hanes’ Australian business for approximately $490 million is expected to accelerate debt reduction and support the eventual resumption of share repurchases.
• The company expects approximately $220 million in IEEPA tariff refunds, with roughly half viewed as a recurring structural benefit from tariff-free qualifying CAFTA-DR apparel and the non-recurring portion being reinvested in Hanes marketing, promotions, product innovation, and packaging.
• Retail demand and seasonal inventory builds remained soft, particularly in June, prompting the company to move full-year revenue expectations to the low end of its $6.0–$6.2 billion range. Wholesale trends improved and key brands gained share, but management said the broader market remained difficult to call entering the third quarter.

Gildan Activewear Price Performance

Shares of NYSE GIL traded up $1.15 on Thursday, hitting $52.40. The company’s stock had a trading volume of 3,843,140 shares, compared to its average volume of 1,205,932. The stock has a 50 day moving average of $54.51 and a 200-day moving average of $59.48. The company has a market capitalization of $9.70 billion, a price-to-earnings ratio of 30.82 and a beta of 1.11. Gildan Activewear has a 12-month low of $46.00 and a 12-month high of $73.69. The company has a debt-to-equity ratio of 1.32, a current ratio of 2.35 and a quick ratio of 1.17.

Gildan Activewear Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Thursday, August 20th will be issued a $0.249 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, August 20th. Gildan Activewear’s dividend payout ratio is 58.82%.

Hedge Funds Weigh In On Gildan Activewear

A number of institutional investors have recently made changes to their positions in the stock. Smartleaf Asset Management LLC raised its stake in Gildan Activewear by 161.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock valued at $27,000 after purchasing an additional 343 shares during the last quarter. Brown Brothers Harriman & Co. boosted its stake in shares of Gildan Activewear by 867.9% during 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 boosted its stake 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 during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Gildan Activewear during the 3rd quarter worth about $36,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in shares of Gildan Activewear during the third quarter worth about $44,000. 82.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

GIL has been the subject of several recent analyst reports. TD Securities reiterated a “buy” rating on shares of Gildan Activewear in a research note on Tuesday, June 16th. Canadian Imperial Bank of Commerce restated an “outperform” rating and set a $77.00 target price on shares of Gildan Activewear in a research report on Friday, May 1st. Weiss Ratings cut shares of Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, May 18th. Stifel Nicolaus set a $80.00 price target on shares of Gildan Activewear and gave the company a “buy” rating in a research report on Monday, July 20th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Gildan Activewear in a research note on Wednesday, June 17th. Thirteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Gildan Activewear currently has an average rating of “Moderate Buy” and an average target price of $78.21.

About Gildan Activewear

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.