Gildan Activewear reported third quarter 2026 results that fell short of analyst estimates on both the top and bottom lines. Net sales from continuing operations rose 61.1% year-over-year to $1.47 billion, primarily driven by the HanesBrands acquisition, but missed expectations as a demand recovery failed to materialize. Consequently, management significantly lowered its full-year 2026 guidance and withdrew its previously stated long-term objectives for the 2026–2028 period, citing a rapid deterioration in macroeconomic conditions and persistent inflation weighing on apparel demand.
Key Highlights
- Net sales of $1.47 billion missed the $1.62 billion estimate due to lower-than-anticipated volumes in both Wholesale and Retail channels.
- Adjusted diluted EPS of $1.54 missed the consensus expectation of $1.60, though it increased 54.0% compared to $1.00 in the prior year.
- Adjusted operating margin of 27.0% exceeded the 26.0% estimate, supported by $177 million in tariff refunds and realized synergies from the HanesBrands integration.
- Full-year 2026 revenue guidance was lowered to a range of $5.4 billion to $5.5 billion, down from the previous expectation of the low end of $6.0 billion to $6.2 billion.
- The company completed the $490 million sale of HanesBrands Australia on October 26, 2026, using the proceeds to repay outstanding debt.