July 30, 2026 – Gildan Activewear Inc. announced results for the second quarter ended June 28, 2026, and updated its full-year 2026 guidance. brbr

“We delivered strong results this quarter as our teams continued to execute with discipline against our strategic priorities,” said Glenn J. Chamandy, Gildan’s President and CEO. “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.” brbr

Chamandy added that the company remains focused on executing its strategy, capturing the opportunities ahead and driving profitable growth and long-term shareholder value. brbr

Second-Quarter Operating Results

Net sales from continuing operations were $1.58 billion, up 72.3% over the prior year and in line with guidance of approximately $1.6 billion. The year-over-year increase primarily reflected the HanesBrands acquisition, partially offset by the impact of integration initiatives designed to optimize Gildan’s manufacturing footprint and accelerate the capture of synergies. brbr

Compared with pro forma net sales from continuing operations of $1.72 billion, the decline reflected lower volumes stemming from the company’s proactive inventory reduction across customer channels as it integrates HanesBrands. Results were also affected by the non-recurrence of some advance purchasing in the second quarter of 2025 ahead of pricing actions, primarily in retail. brbr

Wholesale sales were $769 million, compared with $781 million in the previous year, representing a decline of 1.5%. Compared with pro forma wholesale sales, revenue declined 5.8%, mainly due to proactive inventory reductions across the combined customer channels, partially offset by pricing initiatives. brbr

Gildan continued to see market-share gains in key growth categories such as ringspun products and fleece, driven by product innovation. Comfort Colors, American Apparel and Champion also continued to gain momentum with customers, generating double-digit year-over-year sales growth. brbr

Retail sales totalled $813 million, compared with $137 million a year earlier, primarily reflecting the acquisition of HanesBrands. Compared with pro forma retail sales of $901 million, the decline was attributed to broader market softness toward the end of the quarter, lower seasonal inventory builds at certain large retail customers and the non-recurrence of some advance purchasing activity recorded in the second quarter of 2025. brbr

Gildan generated gross profit of $460 million, or 29.1% of net sales, compared with $289 million, or 31.5% of net sales, in the same period last year. Excluding an $86-million inventory fair-value step-up cost associated with the HanesBrands acquisition, adjusted gross profit was $545 million, representing 34.5% of net sales. brbr

The 300-basis-point improvement in adjusted gross margin mainly reflected the favourable contribution from HanesBrands, lower raw-material costs and pricing initiatives implemented to partially offset the impact of tariffs. The quarter also included an approximately $25-million benefit from Phase I tariff refunds under the U.S. Customs and Border Protection refund process. brbr

Operating income was $176 million, compared with $199 million in the previous year. Adjusted operating income was approximately $352 million, an increase of $144 million year over year. Adjusted operating margin was 22.3% of net sales, down 40 basis points from the prior year but approximately 260 basis points ahead of guidance of around 19.7%. brbr

Adjusted diluted earnings per share from continuing operations were $1.28, up 32% from $0.97 in the prior year. This included a positive impact of $0.11 per share from tariff refunds recorded during the quarter. brbr

For the first six months of 2026, net sales from continuing operations reached $2.75 billion, up 68.6% from the same period last year, primarily reflecting the HanesBrands acquisition. Adjusted gross profit was $930 million, or 33.8% of net sales, compared with 31.4% in the previous year. brbr

HanesBrands Australian Business to Be Divested

Gildan also announced that it has entered into a definitive agreement to sell the HanesBrands Australian Business to BBFIT Investments Pte Ltd at an enterprise valuation of approximately A$700 million, or approximately $490 million, subject to customary purchase-price adjustments. brbr

The transaction is expected to close during the second half of 2026, subject to regulatory approvals and customary closing conditions. Proceeds will be used to reduce debt, accelerating Gildan’s return to the midpoint of its target leverage framework of 1.5 to 2.5 times net debt to trailing 12-month pro forma adjusted EBITDA. brbr

HanesBrands Integration Progress

The integration of HanesBrands continues to progress as expected. Gildan remains on pace to generate approximately $100 million in targeted synergies in 2026, with the vast majority of its planned synergy initiatives already implemented. brbr

The company continues to expect approximately $250 million in annual run-rate cost synergies over the next three years and will pursue additional opportunities as the integration progresses. brbr

Gildan has completed its initial supply-chain footprint rationalization and is reallocating production volumes across its consolidated network, leveraging its low-cost, vertically integrated manufacturing operations. The company is also optimizing distribution capacity and standardizing systems across facilities and key supply-chain and manufacturing processes. brbr

2026 Outlook

Gildan said its expanded scale, low-cost vertically integrated business model and strong industry position support its confidence in delivering profitable growth and advancing its 2026–2028 objectives. brbr

Although the retail environment remains dynamic and some retailers continue to take a disciplined approach to inventory management, the company sees opportunities driven by consumer demand for innovative, high-quality products and retailers’ focus on strategic partnerships and supply-chain flexibility. brbr

Gildan said its updated 2026 outlook reflects the underlying earnings power of the combined business and provides a strong foundation for further earnings growth in 2027.