Gildan Activewear Inc Earnings Overview
Gildan Activewear Inc. posted impressive results for the third quarter of 2025, demonstrating resilience and strategic prowess, even amid a tumultuous economic landscape. The Montreal-based apparel giant reported net sales hitting a record high and maintained its well-established profitability. The company further advanced its global positioning with significant developments including a prospective merger with HanesBrands.
Gildan Activewear Inc Results
Below is a table summarizing key financial highlights for Gildan's third quarter:
| Metrics | Q3 2025 Results | Q3 2024 Results | Year-Over-Year Change |
|---|---|---|---|
| Net Sales | $911 million | $891 million | +2.2% |
| Operating Margin | 21.1% | 21.7% | -60 basis points |
| Adjusted Operating Margin | 23.2% | 22.4% | +80 basis points |
| GAAP Diluted EPS | $0.80 | $0.82 | -2.4% |
| Adjusted Diluted EPS | $1.00 | $0.85 | +17.6% |
Gildan's performance reflects the effectiveness of its Gildan Sustainable Growth (GSG) strategy, which seeks to leverage its low-cost vertically integrated business model.
Revenue Breakdown
Gildan Activewear reported revenues across several key segments, outlined in the table below:
| Revenue Segment | Q3 2025 Revenue | Q3 2024 Revenue | Year-Over-Year Change |
|---|---|---|---|
| Activewear | $831 million | $789 million | +5.4% |
| Hosiery & Underwear | $80 million | $103 million | -22.1% |
| International | $60 million | $64 million | -6.1% |
Analysis of Segment Performance
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Activewear : The segment experienced robust growth, driven by a favorable product mix and price increases. U.S. distributor sales were notably strong, supported by strategic national account relationships. The product innovation pipeline added momentum with new offerings like the soft cotton technology and new brand introductions.
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Hosiery & Underwear : This segment faced challenges, with a 22.1% decline attributed mainly to lower sales volumes and market weakness. However, management indicated that part of the downturn was due to shipment timing shifts expected to recover in the fourth quarter.
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International Markets : The international segment saw a 6.1% decrease, attributed to ongoing demand challenges across different markets, highlighting the softer global demand pressures being faced.
Key Developments
A notable development during the quarter was Gildan’s announced definitive merger agreement with HanesBrands, a strategic move poised to create a global leader in basic apparel. This merger is expected to leverage synergies and expand market reach, potentially closing in late 2025 or early 2026. Additionally, the company highlighted the successful execution of its GSG strategy, which continues to stimulate financial performance and growth.
Comments from Company Officers
Glenn J. Chamandy, President and CEO, expressed optimism about the results, attributing success to strategic execution and sustainability efforts. He noted, “We were pleased with this quarter’s results as we continue to drive profitable growth, supported by strong net sales growth of 5.4% in Activewear which allowed us to deliver record adjusted diluted EPS.”
Dividends and Share Repurchases
The company declared a quarterly cash dividend of $0.226 per share, payable on December 15, 2025, reinforcing its commitment to returning value to shareholders. Meanwhile, share repurchases were paused, aligning with the proposed merger's financing strategies, targeting a leverage ratio within their ideal range of 1.5x to 2.5x net debt to adjusted EBITDA.
Gildan Activewear Inc Stock Forecast
Taking into account the solid financial performance, strategic initiatives like the HanesBrands acquisition, and current market positioning, Gildan's stock price outlook appears promising. Analysts project that if the merger proceeds smoothly and integration synergies are realized, the stock could range high, potentially crossing the $52 mark in the coming quarters. Conversely, the downside risk, factoring in execution uncertainties and global market headwinds, might see the stock dip to around $40.
Ultimately, Gildan Activewear Inc. remains on a strong trajectory, armed with strategic initiatives and robust operational fundamentals, allaying investor concerns amid an unpredictable economic backdrop.
