Gildan Activewear (NYSE:GIL) Announces Quarterly Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) posted its earnings results on Thursday. The textile maker reported $1.54 earnings per share for the quarter, missing the consensus estimate of $1.57 by ($0.03), Zacks reports. Gildan Activewear had a return on equity of 21.03% and a net margin of 1.28%.

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

• Results and guidance fell short: Q3 sales were $1.47 billion, below the approximately $1.65 billion outlook, and adjusted EPS was $1.54. Gildan cut its 2026 revenue outlook to $5.4–$5.5 billion and adjusted EPS outlook to $3.70–$3.80, citing weaker demand and lower expected replenishment.
• Demand and execution pressures weighed on sales: Management attributed the shortfall to a softer consumer and selective retailer ordering, with unusually warm weather weighing on fleece sales and creating unfavorable mix. Retail product availability and service constraints also hurt results, though the company said these issues are largely behind it.
• Cash generation remained strong: Gildan generated $622 million of free cash flow in the first nine months and expects $700–$750 million for the year. Its 27% Q3 adjusted operating margin exceeded guidance, although tariff refunds materially supported margins.
• Integration and capital returns are priorities: The company used about $490 million of proceeds from the HAA sale to repay debt and approved a share repurchase bid for up to 5% of outstanding shares. Management remains on track for $100 million of 2026 Hanes synergies and expects $250 million in annual run-rate synergies by the end of 2028.
• Long-term targets are on hold: Gildan withdrew its previously stated 2026–2028 objectives amid uncertainty and plans to present an updated long-term outlook at an investor day intended for spring 2027. Management highlighted new product innovation expected to roll out through 2027.

Gildan Activewear Stock Down 19.5%

Gildan Activewear stock opened at $34.83 on Friday. The company has a 50 day moving average of $44.21 and a 200-day moving average of $55.31. The company has a quick ratio of 1.01, a current ratio of 1.93 and a debt-to-equity ratio of 1.15. Gildan Activewear has a twelve month low of $31.33 and a twelve month high of $73.69. The stock has a market capitalization of $6.45 billion, a PE ratio of 66.98 and a beta of 1.15.

Gildan Activewear Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Wednesday, November 25th will be issued a $0.2490 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Wednesday, November 25th. Gildan Activewear’s dividend payout ratio is 190.38%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on GIL. William Blair set a $49.00 price target on shares of Gildan Activewear in a report on Friday. Stifel Nicolaus set a $83.00 target price on Gildan Activewear and gave the stock a “buy” rating in a report on Friday, July 31st. Scotia boosted their target price on Gildan Activewear from $65.00 to $67.00 and gave the company a “sector outperform” rating in a research note on Friday, July 31st. Weiss Ratings restated a “hold (c)” rating on shares of Gildan Activewear in a report on Thursday, August 13th. Finally, TD Securities lowered their price target on Gildan Activewear from $80.00 to $54.00 and set a “buy” rating for the company in a report on Thursday, September 24th. Nine equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $62.91.

Gildan Activewear News Roundup

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

• Positive Sentiment: Third-quarter net sales from continuing operations rose 61.1% year over year to $1.47 billion; reported operating margin was 24.1% and adjusted operating margin was 27.0%. Gildan Q3 results and guidance update
• Negative Sentiment: Gildan reported third-quarter EPS of $1.54, below the $1.57 consensus estimate, despite rising from $1.00 a year earlier. The earnings shortfall may have disappointed investors. Gildan misses Q3 estimates
• Negative Sentiment: A securities class action has been filed on behalf of investors who bought Gildan shares from February 19, 2025, through June 15, 2026. The suit alleges securities-law violations, including claims related to roughly $500 million in apparel revenue allegedly pulled forward; these are allegations, not established findings. The lead-plaintiff deadline is December 14, 2026. Class action allegations and deadline

Gildan Activewear Company Profile

Gildan Activewear Inc is a Montreal, Quebec-based apparel manufacturer that produces and sells everyday basic clothing for consumers and businesses. The company’s product portfolio includes activewear, T-shirts, fleece garments, underwear, socks and hosiery, as well as other apparel basics.

Gildan sells products primarily through wholesale distributors and screen printers, who supply decorated apparel to businesses, schools, teams, organizations and retailers. Its portfolio includes the Gildan, American Apparel, Comfort Colors, Gold Toe and Anvil brands.