April 30, 2026 – Gildan Activewear Inc. announced record first quarter 2026 results, reflecting the impact of the HanesBrands Inc. acquisition and continued progress on integration initiatives, while reaffirming its full-year outlook. brbr

Gildan delivered strong top-line growth in Q1 2026 driven by the HanesBrands acquisition, while managing short-term margin pressure and cash flow impacts related to integration. The company remains confident in its strategy, synergy targets, and full-year guidance, supported by its vertically integrated model and ongoing operational improvements. brbr

• Net sales from continuing operations reached $1.17 billion, up 63.8% year over year brbr
• Reported operating margin of (0.1)%; adjusted operating margin of 14.3%, ahead of guidance brbr
• GAAP diluted loss per share of $0.30; adjusted diluted EPS of $0.43 brbr
• Integration on track, with expected $100 million in synergies in 2026 and $250 million annually over three years brbr
• Full-year 2026 guidance and 2026–2028 strategic objectives maintained brbr

President and CEO Glenn Chamandy said results reflect disciplined execution and progress on integration efforts, positioning the company to drive efficiencies and long-term growth despite macroeconomic uncertainty. brbr

Q1 2026 Performance

Growth was primarily driven by the HanesBrands acquisition, partially offset by proactive inventory reductions aimed at optimizing operations. brbr

• Wholesale sales declined to $552 million due to lower volumes and reduced pre-buying activity brbr
• Retail sales increased significantly to $614 million, reflecting acquisition-related growth and higher pricing brbr
• Gross profit totaled $278 million (23.9%), or $385 million adjusted (33.0%), supported by pricing actions and cost efficiencies brbr
• Adjusted operating income rose to $167 million, though margins declined year over year due to HanesBrands’ higher SG&A structure brbr

The company reported higher financial expenses related to acquisition debt and negative free cash flow of approximately $310 million, ending the quarter with $4.9 billion in net debt. brbr

Integration Update: Integration of HanesBrands is progressing as planned, with initiatives focused on: brbr

• Manufacturing footprint optimization brbr
• Supply chain and IT standardization brbr
• Distribution efficiency improvements brbr

Gildan reaffirmed its full-year guidance: brbr

• Revenue: $6.0 – $6.2 billion brbr
• Adjusted operating margin: ~20% brbr
• Adjusted EPS: $4.20 – $4.40 (up 20–25%) brbr
• Free cash flow: Above $850 million brbr
• Capex: ~3% of sales brbr

The company declared a quarterly dividend of $0.249 per share, payable June 15, 2026.