Gildan Activewear (NYSE:GIL) Announces Earnings Results, Misses Expectations By $0.06 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its earnings results on Thursday. The textile maker reported $1.54 EPS for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.06), Zacks reports. Gildan Activewear had a net margin of 1.28% and a return on equity of 21.03%.

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 Trading Down 19.5%

Shares of NYSE:GIL traded down $8.44 during midday trading on Thursday, reaching $34.83. The company’s stock had a trading volume of 8,958,432 shares, compared to its average volume of 1,336,569. The firm has a market cap of $6.45 billion, a price-to-earnings ratio of 11.79 and a beta of 1.15. The business has a 50 day moving average price of $44.21 and a 200 day moving average price of $55.31. Gildan Activewear has a 1 year low of $31.33 and a 1 year high of $73.69. The company has a quick ratio of 1.01, a current ratio of 1.93 and a debt-to-equity ratio of 1.15.

Analysts Set New Price Targets

A number of research firms recently commented on GIL. BMO Capital Markets set a $64.00 price objective on Gildan Activewear and gave the stock an “outperform” rating in a research report on Monday, October 26th. Stifel Nicolaus set a $83.00 target price on shares of Gildan Activewear and gave the company a “buy” rating in a report on Friday, July 31st. Scotia raised their price target on shares of Gildan Activewear from $65.00 to $67.00 and gave the stock a “sector outperform” rating in a research note on Friday, July 31st. Scotiabank reiterated a “sector outperform” rating and set a $53.00 price target on shares of Gildan Activewear in a report on Tuesday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Gildan Activewear in a research report on Thursday, August 13th. Ten research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Gildan Activewear presently has an average rating of “Moderate Buy” and a consensus target price of $69.00.

Key Stories Impacting Gildan Activewear

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. Gildan reported a 24.1% operating margin and a 27.0% adjusted operating margin. Gildan third-quarter results and guidance
• Neutral Sentiment: Several law firms publicized the same securities class action and its December 14 lead-plaintiff deadline. The case concerns investors who bought shares between February 19, 2025, and June 15, 2026; the repeated announcements are not separate lawsuits. Shareholder alert
• Negative Sentiment: Quarterly EPS was $1.54, below analyst expectations of roughly $1.57–$1.60. The earnings shortfall likely weighed on sentiment despite the sharp increase in sales. Gildan misses third-quarter estimates
• Negative Sentiment: The lawsuit alleges Gildan misrepresented its business performance, including by pulling forward about $500 million in apparel sales. These remain allegations, but the litigation adds legal and reputational uncertainty for investors. Class action allegations and deadline

About Gildan Activewear

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.