Gildan Activewear (NYSE:GIL) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its quarterly earnings data on Thursday. The textile maker reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.07, Zacks reports. Gildan Activewear had a net margin of 6.10% and a return on equity of 24.48%. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the prior year, the business earned $0.59 earnings per share. The business’s quarterly revenue was up 63.8% compared to the same quarter last year. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

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

• We reported record Q1 net sales from continuing operations of $1.17 billion (up ~64% YoY), driven primarily by the HanesBrands acquisition.
• Adjusted diluted EPS from continuing operations fell to $0.43 (from $0.59 a year ago) and GAAP diluted loss per share was $0.30, reflecting integration costs, an acquisition inventory fair-value step-up and higher financing and SG&A pressures.
• Management is progressing on integration and expects approximately $250 million of run-rate cost synergies over three years, including about $100 million in 2026, as it relocates Hanes volumes into Gildan facilities and standardizes systems.
• The company is maintaining 2026 guidance — $6.0–$6.2 billion revenue, ~20% adjusted operating margin and adjusted EPS of $4.20–$4.40 — while noting Q2 (~$1.6 billion) is impacted by a proactive temporary inventory reduction and shipment timing shifts into H2.
• Net debt ended Q1 at $4.868 billion with leverage of 3.3x; management is pursuing a sale of Hanes Australasia to pay down debt and said buybacks will resume only after reaching a ~2x leverage target within the 1.5–2.5x framework.

Gildan Activewear Stock Down 0.8%

GIL stock traded down $0.52 during trading on Friday, reaching $61.47. The stock had a trading volume of 1,574,837 shares, compared to its average volume of 1,078,575. Gildan Activewear has a one year low of $46.00 and a one year high of $73.69. The company has a quick ratio of 1.05, a current ratio of 2.11 and a debt-to-equity ratio of 1.16. The company’s 50 day moving average is $60.14 and its two-hundred day moving average is $61.51. The company has a market capitalization of $11.38 billion, a price-to-earnings ratio of 23.46 and a beta of 1.10.

Gildan Activewear Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Wednesday, May 20th will be given a $0.249 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Wednesday, May 20th. Gildan Activewear’s dividend payout ratio is presently 38.17%.

Analysts Set New Price Targets

GIL has been the topic of a number of analyst reports. National Bank Financial upped their target price on shares of Gildan Activewear from $92.00 to $97.00 and gave the stock an “outperform” rating in a report on Monday, February 2nd. Stifel Nicolaus upped their target price on shares of Gildan Activewear from $75.00 to $80.00 and gave the stock a “buy” rating in a report on Monday, February 23rd. BMO Capital Markets upped their target price on shares of Gildan Activewear from $70.00 to $78.00 and gave the stock an “outperform” rating in a report on Monday, January 26th. Royal Bank Of Canada lowered their target price on shares of Gildan Activewear from $79.00 to $78.00 and set an “outperform” rating on the stock in a report on Monday, March 2nd. Finally, TD Securities restated a “buy” rating and issued a $77.00 target price on shares of Gildan Activewear in a report on Tuesday, January 27th. Thirteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $79.92.

Institutional Investors Weigh In On Gildan Activewear

A number of institutional investors have recently added to or reduced their stakes in GIL. Smartleaf Asset Management LLC grew its position in Gildan Activewear by 161.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock worth $27,000 after purchasing an additional 343 shares in the last quarter. Brown Brothers Harriman & Co. grew its position in Gildan Activewear by 867.9% in 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 in the last quarter. CIBC Private Wealth Group LLC grew its position in Gildan Activewear by 169.0% in 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 in the last quarter. Advisory Services Network LLC bought a new stake in Gildan Activewear in the 3rd quarter worth about $36,000. Finally, Measured Wealth Private Client Group LLC bought a new stake in Gildan Activewear in the 3rd quarter worth about $44,000. 82.83% of the stock is owned by institutional investors.

Gildan Activewear News Summary

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

• Positive Sentiment: Q1 results beat expectations — adjusted EPS of $0.43 vs. $0.36 est. and record first‑quarter revenue up ~63.8% year‑over‑year as HanesBrands was fully consolidated; company reiterated full‑year guidance and synergy targets, which supports medium‑term earnings power. Gildan Reports Record First Quarter Revenue and Maintains its Full Year 2026 Guidance
• Positive Sentiment: Company maintained FY‑2026 EPS guidance (4.20–4.40) and revenue range (~$6.0–$6.2B) and reiterated expected synergy run‑rate (~$250M over three years), giving investors a clearer earnings trajectory post‑acquisition. Q1 release and call materials
• Positive Sentiment: Declared a quarterly cash dividend of $0.249/share (ex‑dividend May 20, payable June 15), which supports yield‑seeking demand and signals cash‑flow confidence.
• Neutral Sentiment: Shareholders re‑elected all nine management nominees, approved auditor reappointment, renewed the Shareholder Rights Plan and passed the non‑binding Say‑on‑Pay — governance items passed but litigation risk remains. Gildan Activewear Reports on Shareholders’ Voting Results
• Negative Sentiment: Regulatory / litigation overhang: law firms launched a class action alert and a fraud investigation (Levi & Korsinsky) tied to past CEO removal/reinstatement and alleged governance failures — these actions create downside risk, potential legal fees and reputational damage. GIL Shareholder Alert: Gildan Activewear Inc. Class Action Lawsuit – Investors Should Contact Levi & Korsinsky Levi & Korsinsky Launches Fraud Investigation
• Negative Sentiment: GAAP results showed a loss for the quarter (GAAP diluted loss per share $0.30) and adjusted metrics reflect integration and inventory moves; near‑term margins were pressured (operating margin (0.1)% GAAP), which could weigh on sentiment until synergies are realized. Q1 press release: GAAP loss and adjusted metrics

Gildan Activewear Company Profile

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.