MONTREAL, March 18, 2026 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) announced today that Glenn J. Chamandy, President & Chief Executive Officer, Luca Barile, Executive Vice-President, Chief Financial Officer and Jessy Hayem, Senior Vice-President, Head of Investor Relations and Global Communications will participate in a fireside chat and one-on-one meetings with investors at the 29th Annual CIBC Retail and Consumer Conference in Toronto on Wednesday, March 25, 2026. About GildanGildan i ...

Core Viewpoint - Gildan Activewear Inc. is identified as one of the most oversold stocks to consider for investment, with recent price target increases from Telsey Advisory and TD Securities, despite concerns over lighter sales guidance [1][2]. Financial Performance - Gildan reported Q4 adjusted continuing operations EPS of 96 cents, slightly above the consensus estimate of 95 cents, with revenue reaching $1.08 billion, surpassing the consensus of $1.06 billion [3]. - The company anticipates run-rate cost synergies of approximately $250 million by the end of 2028, including around $100 million expected in 2026, following the acquisition of HanesBrands [3]. Analyst Ratings and Price Targets - Telsey Advisory raised its price target on Gildan to $74 from $72 while maintaining an Outperform rating, citing higher expected synergy capture and potential for earlier share buybacks [1]. - TD Securities increased its price target to $80 from $77, keeping a Buy rating after updating its model post the company's Q4 report [2]. Company Overview - Gildan Activewear manufactures and sells a variety of apparel products, including activewear like T-shirts, fleece, polos, and sports shirts, as well as hosiery products such as athletic and dress socks, under multiple brands [4].

Core Insights - Gildan Activewear Inc. is recognized as one of the 13 most profitable growth stocks to buy currently, with a Buy rating and a price target of $80 from Stifel Nicolaus [1] - TD Cowen Securities also maintains a Buy rating on Gildan, raising its price target from $77 to $80 following the company's fourth-quarter earnings report [2] Financial Performance - Gildan reported a Non-GAAP EPS of $0.96 for the fourth quarter, exceeding estimates by $0.01 [3] - The company's revenue for the quarter reached $1.08 billion, representing a 31.4% year-over-year increase and surpassing consensus estimates by $20 million [3] - Operating cash flows increased by 59.8%, with a 20.9% rise compared to the previous year, while free cash flows jumped 46.4% year-over-year [3] Shareholder Returns - During the quarter, Gildan returned $33 million to shareholders through dividends and share repurchases [4] - The company announced a 10% dividend increase for 2026 [4] Company Overview - Gildan Activewear Inc. is a manufacturer and seller of various apparel products, including activewear such as sports shirts, tank tops, T-shirts, polos, and fleece items [5]

Group 1: Financial Performance - Gildan Activewear reported record annual revenue of approximately $3.6 billion for 2025, with an adjusted operating margin of 21.5% [1] - Full-year adjusted diluted EPS increased by 17% to $3.51 [1] - Q4 sales from continuing operations rose by 31.3% to $1.078 billion, driven by a 10.3% increase in Activewear sales and a 171% surge in Innerwear sales following the acquisition of Hanes brands [1] Group 2: Strategic Initiatives - The integration of Hanes brands is progressing ahead of schedule, with expected cost synergies increased to $250 million over the next 3 years through manufacturing optimization and IT standardization [2] - Gildan forecasts revenue between $6 billion and $6.2 billion for 2026, with adjusted diluted EPS projected in the range of $4.20 to $4.40 [2] - The company plans to expand its manufacturing complex in Bangladesh to support growth through 2028 [2] Group 3: Challenges - Gildan faces short-term hurdles, including a proactive inventory destocking plan that may impact sales in H1 2026 as the company closes two Hanes facilities [3]

Core Insights - Gildan's net sales reached $1,078.5 million in Q4, marking a 31.3% increase year over year, with organic sales growth at 4.9% [1] - The company plans to develop a second textile facility in Bangladesh, expected to start production in late 2027, enhancing its cost leadership in ring spun and innerwear [2] - Gildan's acquisition of HanesBrands is anticipated to unlock $250 million in annual run-rate cost synergies over the next three years, exceeding initial expectations [3] - The company has initiated the sale of HanesBrands' Australian business, classifying it as discontinued operations, with projected net sales of approximately $675 million for 2026 [4] - Gildan reported record revenue of $3,619 million for 2025, with an adjusted operating margin of 21.5% and adjusted diluted EPS growth of 17.0% year over year [5] - In Q4, Gildan generated operating income of $99 million, representing 9.2% of net sales, down from 21.8% the previous year, while net income rose 29.7% year on year to $153.5 million [6] - Activewear sales increased by 10.3% to $788 million, driven by contributions from HanesBrands and market share gains in key growth categories [7]

Group 1 - TD Securities raised the price target on Gildan Activewear (GIL) to $80 from $77 [1] - The firm maintains a Buy rating on Gildan Activewear shares [1] - The update follows the company's Q4 report and reflects changes in the company's model [1]

Core Insights - Gildan Activewear reported record revenues of approximately $3.6 billion for 2025, with adjusted operating margins of 21.5% and adjusted diluted EPS of $3.51, reflecting a 17% year-over-year increase [1][6]. Financial Performance - The fourth-quarter sales from continuing operations reached $1.078 billion, marking a 31.3% increase year-over-year, with organic growth at 4.9% when excluding HanesBrands' contribution [7]. - Gross profit for the quarter was $312 million, representing 28.9% of net sales, down from 30.8% the previous year, primarily due to a $35.4 million inventory fair value step-up charge related to the HanesBrands acquisition [8]. - For the full year, operating cash flow was $606 million, with free cash flow at approximately $493 million after capital expenditures of $114 million [11]. Acquisition and Integration - Gildan completed the acquisition of HanesBrands on December 1, 2025, and has classified the HanesBrands Australian business as "held for sale" [4][7]. - The integration of HanesBrands is progressing ahead of plan, with efforts focused on optimizing manufacturing, distribution, IT platforms, and supply chain processes [2]. Cost Synergies and Operational Changes - Management raised the targeted run-rate cost synergies to approximately $250 million over three years, up from an initial target of $200 million [5][12]. - Gildan plans to close two Hanes textile factories and expand operations in Bangladesh, with a new large-scale textile facility expected to begin construction within 18 months [13][14]. 2026 Guidance - For 2026, Gildan anticipates continuing operations revenue between $6.0 billion and $6.2 billion, with adjusted EPS projected at $4.20 to $4.40 and free cash flow above $850 million [6][15]. - The guidance excludes the HanesBrands Australia business, which is expected to contribute approximately $675 million in net sales and $0.21 in diluted EPS [15]. Segment Reporting Changes - Starting Q1 2026, Gildan will change its segment disclosure from activewear/innerwear to a retail and wholesale basis to align with its market structure [19].

Core Insights - Gildan Activewear Inc. (GIL) reported fourth-quarter 2025 results with both revenue and earnings per share (EPS) missing the Zacks Consensus Estimate, although both metrics showed year-over-year growth [1] Financial Performance - GIL's quarterly EPS was 96 cents, below the Zacks Consensus Estimate of $1.31, but up 15.7% year over year from 83 cents [2] - Net sales reached $1,078.5 million, a 31.3% increase from $821.5 million year over year, but fell short of the Zacks Consensus Estimate of $1,125 million. Organic sales growth, excluding Hanes' contribution, was 4.9% [3] - Adjusted gross profit rose 37.3% to $347.4 million from $253 million, with an adjusted gross margin improvement of 140 basis points to 32.2% [4] - Adjusted operating income increased 27.3% to $222.9 million, with an operating margin of 20.7%, down 60 basis points from the previous year [6] Category Performance - Activewear category sales grew 10.3% year over year to $787.8 million, driven by HanesBrands' contribution and strong demand from North American distributors [7] - Innerwear category sales surged 170.7% year over year to $290.6 million, primarily due to HanesBrands' contribution, despite some volume reduction [8] Geographical Performance - In the United States, net sales increased 33.7% year over year to $976.6 million, while sales in Canada rose 29% to $34.2 million. International sales grew 5.1% to $67.7 million [11] Financial Health - Operating cash flow rose 20.9% year over year to $606 million, with free cash flow totaling approximately $493 million after $114 million in capital expenditures [12] - The company returned $319 million through dividends and share repurchases in 2025, with a 10% increase in dividends approved for 2026 [13] Future Outlook - For 2026, GIL expects revenues between $6.0 billion and $6.2 billion, with adjusted diluted EPS projected in the range of $4.20 to $4.40 [14] - The company anticipates net sales of approximately $1.15 billion for the first quarter of 2026, with an adjusted operating margin of about 12.9% [16]

Financial Data and Key Metrics Changes - Gildan reported record revenues from continuing operations of approximately $3.6 billion for 2025, with adjusted operating margins of 21.5% and a year-over-year adjusted diluted EPS growth of 17%, reaching $3.51 [7][21] - For Q4 2025, sales from continuing operations were $1.078 billion, up 31.3% year-over-year, with organic growth of 4.9% when excluding Hanes' contribution [15][16] - Adjusted diluted EPS for Q4 was $0.96, a 16% increase from $0.83 in the prior year, while GAAP diluted EPS from continuing operations was $0.32 compared to $0.86 the previous year [21] Business Line Data and Key Metrics Changes - Activewear sales grew 10.3% to $788 million, driven by the Hanes acquisition and favorable pricing [16] - Innerwear sales, which now include hosiery, underwear, and intimates, surged approximately 171% year-over-year, primarily due to HanesBrands' contribution [16] - International market sales reached $68 million, up 5.1% year-over-year, reflecting the acquisition's impact despite demand softness in certain regions [17] Market Data and Key Metrics Changes - The company anticipates approximately $250 million in run rate cost synergies over the next three years, an increase from the original target of $200 million [10] - The integration of HanesBrands is progressing ahead of plan, with manufacturing footprint optimization already underway [8][10] - The company is also expanding its Bangladesh operations with a second large-scale textile facility expected to come online in late 2027 [11] Company Strategy and Development Direction - Gildan's strategy focuses on leveraging the Hanes acquisition to double its scale and enhance innovation and growth potential [8] - The company aims for compounded annual sales growth of 3%-5% from pro forma net sales of $6.089 billion for the combined businesses over the next three years [12][29] - A new organizational structure has been implemented to support combined operations, with a focus on commercial strategy for retail and wholesale channels [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock targeted synergies and achieve growth objectives despite a dynamic macroeconomic environment [12][28] - The outlook for 2026 includes expected revenues of $6 billion to $6.2 billion, with adjusted diluted EPS projected between $4.20 and $4.40 [25][28] - Management highlighted the importance of innovation and investment in product offerings to drive future growth, particularly in the Hanes brand [56][62] Other Important Information - The HanesBrands Australian business has been classified as held for sale and reported as discontinued operations [5] - The company plans to use proceeds from the potential divestment of the Australian business to reduce outstanding debt and return to a leverage framework of 1.5x-2.5x net debt to pro forma adjusted EBITDA [24] Q&A Session Summary Question: Can you elaborate on the destocking plans for the year? - Management indicated that the destocking is primarily driven by capacity changes due to the closure of two Hanes facilities, and they are working closely with customers to manage inventory levels [36][38] Question: What sales capacity can be achieved after closing the Hanes facilities? - Management confirmed that current manufacturing capacity is sufficient to support the projected sales growth, with additional capacity expected from the second phase of the Bangladesh facility [45][46] Question: How will the integration of HanesBrands be managed? - Management stated that all integration will be internalized within Gildan's facilities, leveraging existing capacity and expanding operations in Bangladesh and Central America [80]

Financial Data and Key Metrics Changes - Gildan reported record revenues from continuing operations of approximately $3.6 billion for 2025, with adjusted operating margins of 21.5% and adjusted diluted EPS growth of 17%, reaching $3.51 [7][21] - For Q4 2025, sales from continuing operations were $1.078 billion, a 31.3% increase year-over-year, with organic growth of 4.9% excluding Hanes' contribution [15][16] - Adjusted diluted EPS for Q4 was $0.96, up 16% from $0.83 in the prior year, while GAAP diluted EPS from continuing operations was $0.32 compared to $0.86 the previous year [21] Business Line Data and Key Metrics Changes - Activewear sales grew 10.3% to $788 million, driven by the Hanes acquisition and favorable pricing [16] - Innerwear sales, which now include hosiery, underwear, and intimates, surged approximately 171% year-over-year, primarily due to HanesBrands' contribution [16] - International market sales reached $68 million, up 5.1% year-over-year, reflecting the acquisition's impact despite demand softness in certain regions [17] Market Data and Key Metrics Changes - The company anticipates approximately $250 million in run-rate cost synergies over the next three years, an increase from the original target of $200 million [10] - The integration of HanesBrands is progressing ahead of plan, with manufacturing footprint optimization already underway [8][10] - Gildan expects revenue for 2026 to be between $6 billion and $6.2 billion, with adjusted diluted EPS projected in the range of $4.20 to $4.40 [25][29] Company Strategy and Development Direction - The acquisition of HanesBrands is seen as a pivotal moment, doubling Gildan's scale and enhancing its competitive position across product lines and geographies [8][12] - The company is focusing on capturing synergies and optimizing its operational footprint, with a clear emphasis on margin-accretive growth [43] - Gildan plans to expand its Bangladesh facility to reinforce its cost leadership and support long-term demand [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving targeted synergies and maintaining a strong competitive position despite a dynamic macroeconomic environment [12][28] - The company is optimistic about growth in key product categories, driven by innovation and market share gains [25][29] - Management highlighted the importance of investing in product innovation to enhance the quality of offerings and drive sales growth [56][62] Other Important Information - The HanesBrands Australian business has been classified as held for sale and reported as discontinued operations [5] - Gildan's net debt at the end of 2025 was $4.417 billion, with a leverage ratio of 3 times net debt to trailing 12 months pro forma adjusted EBITDA [23] - The company plans to use proceeds from the potential divestment of the HanesBrands Australia business to reduce outstanding debt [24] Q&A Session Summary Question: Can you elaborate on the destocking plans for the year? - Management indicated that the destocking is driven by capacity changes due to the closure of two Hanes facilities, and they are working closely with customers to manage inventory levels [36][38] Question: What sales capacity can be achieved after closing the Hanes facilities? - Management confirmed that current manufacturing capacity is sufficient to support the projected sales growth, with additional capacity expected from the second phase of the Bangladesh facility [45][46] Question: How will the integration of HanesBrands be managed? - Management stated that all integration will be internalized within Gildan's facilities, leveraging existing capacity and optimizing operations [80]