Financial Data and Key Metrics Changes - The company reported third quarter sales of $911 million, a 2.2% year-over-year increase, aligning with previous guidance of low single-digit growth [10] - Activewear sales increased by 5.4%, driven by favorable product mix and higher net prices [10] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point increase year-over-year [12] - Record adjusted diluted EPS of $1.00 was achieved, marking a 17.6% increase compared to the same period last year [5][14] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to shipment timing shifts and broader market weakness [11] - The Comfort Colors brand performed well, celebrating its 50th anniversary, and contributed to overall sales growth [7] - The company introduced new brands such as AllPro and Champion, which are expected to drive future growth [6][10] Market Data and Key Metrics Changes - International market sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness [11] - Sales to North American distributors remained solid, supported by sustained momentum from national account customers [10] Company Strategy and Development Direction - The company is focused on executing its Gildan Sustainable Growth (GSG) strategy, emphasizing operational agility and innovation [16] - Plans for the integration of the proposed acquisition of HanesBrands are underway, with expected run-rate synergies of at least $200 million [8] - The company aims to capitalize on its largest innovation pipeline in history, with more product launches planned for 2025 and 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite a fluid macroeconomic environment [5][18] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [17] - Management noted that the market remains stable, with expectations for growth in the innerwear category in Q4 [23][45] Other Important Information - The company announced a private placement offering of $1.2 billion in senior unsecured notes to fund the proposed acquisition of HanesBrands [14] - Operating cash flow for the first nine months of 2025 was $270 million, with free cash flow guidance updated to approximately $400 million [15][17] Q&A Session Summary Question: Can you talk about the weakness in the Underwear business and market share? - Management noted that the innerwear business faced delays in floor sets by large retailers and inventory management issues due to tariffs [22] - They expect a return to growth in Q4, with a stable market outlook [23][24] Question: What is driving the change in free cash flow guidance? - The decrease in free cash flow guidance is attributed to transaction costs related to the HanesBrands acquisition and timing of working capital [28] Question: How is the fleece business trending? - The fleece business is performing well, with sales meeting expectations as the season progresses [37] Question: What is the competitive landscape like? - Management indicated that the competitive landscape remains stable, with no significant changes observed in recent quarters [97]

Financial Data and Key Metrics Changes - The company reported third quarter sales of $911 million, a 2.2% year-over-year increase, aligning with previous guidance of low single-digit growth [8] - Activewear sales grew by 5.4%, driven by favorable product mix and higher net prices [8] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point increase year-over-year [11] - Record adjusted diluted EPS of $1.00 was achieved, marking a 17.6% increase compared to the same period last year [4][12] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to shipment timing shifts and broader market weakness [9] - The Comfort Colors brand performed well, celebrating its 50th anniversary and contributing to overall sales growth [5] - The company introduced new brand offerings such as AllPro and Champion, which are expected to drive future growth [4][5] Market Data and Key Metrics Changes - International market sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness [9] - Sales to North American distributors remained solid, supported by sustained momentum from national account customers [8] Company Strategy and Development Direction - The company is focused on executing its Gildan Sustainable Growth (GSG) strategy, which emphasizes operational agility and innovation [15] - Plans for the integration of the proposed acquisition of HanesBrands are underway, with expected run-rate synergies of at least $200 million [6] - The company aims to capitalize on its large-scale, low-cost, vertically integrated manufacturing network to enhance competitive positioning [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite a fluid macroeconomic environment [4][15] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [15][16] - Management anticipates a stable market for the innerwear business, expecting growth to return in Q4 [23] Other Important Information - The company generated approximately $189 million in free cash flow in the first nine months of 2025, with $200 million generated in the third quarter [13] - The company ended the quarter with net debt of about $1.7 billion, maintaining a leverage ratio of 2 times net debt to trailing twelve months adjusted EBITDA [13] Q&A Session Summary Question: Can you discuss the weakness in the Underwear business and market share? - Management noted that the innerwear business faced delays in floor sets by large retailers and inventory management issues due to tariff impacts. They expect growth to return in Q4 [21][23] Question: Can you elaborate on the free cash flow guidance update? - The guidance was revised lower primarily due to higher working capital investments and transaction costs related to the HanesBrands acquisition [26][27] Question: What is the outlook for the fleece business and demand? - The fleece business is performing well, with early sales meeting expectations. Management noted that the season for fleece is just beginning [35][36] Question: How is the competitive landscape evolving? - The market has generally passed on tariff-related costs, and the company continues to strengthen its position through brand strength and innovation [100]

Core Insights - Gildan Activewear reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and up from $0.85 per share a year ago, representing an earnings surprise of +2.04% [1] - The company posted revenues of $910.6 million for the quarter ended September 2025, which was 0.7% below the Zacks Consensus Estimate, but an increase from $891.1 million year-over-year [2] - Gildan shares have increased approximately 30.2% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Gildan's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $884.8 million, and for the current fiscal year, it is $3.46 on revenues of $3.42 billion [7] Industry Context - The Textile - Apparel industry, to which Gildan belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Gildan's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Gildan Activewear has narrowed its expectations for the year due to weaker demand and increased tariff costs following a decline in third-quarter profits [1] Group 1: Financial Performance - The company reported a decrease in third-quarter profits, prompting a revision of its financial outlook for the year [1] Group 2: Market Conditions - Weaker demand in the market has been identified as a significant factor affecting the company's performance [1] - Increased tariff costs are also impacting the company's financial results and expectations [1]

Core Insights - Gildan Activewear Inc. reported a strong third quarter for 2025, with net sales reaching $911 million, a 2.2% increase year-over-year, driven by a 5.4% growth in Activewear sales [3][7]. - The company achieved record adjusted diluted EPS of $1.00, reflecting a 17.6% increase from the previous year [9][21]. - Gildan's merger agreement with HanesBrands is expected to close by early 2026, which is anticipated to enhance its market position [16][17]. Financial Performance - Net sales for Q3 2025 were $911 million, with Activewear sales at $831 million, up 5.4% due to favorable product mix and higher prices [3][32]. - Gross profit for the quarter was $307 million, representing 33.7% of net sales, an improvement from 31.2% in the prior year [4][30]. - Operating income was $192 million, or 21.1% of net sales, slightly down from 21.7% in the previous year, but adjusted operating income increased to $212 million, or 23.2% of net sales [6][31]. Expense Management - SG&A expenses rose to $95 million, up from $84 million in the prior year, primarily due to higher variable compensation and IT-related expenses [5][12]. - Net financial expenses increased to $44 million, attributed to fees related to financing for the HanesBrands acquisition [8][14]. Year-to-Date Results - Year-to-date net sales reached $2,541 million, a 3.7% increase compared to the same period last year, with Activewear sales up 8.7% [10][11]. - Gross margin improved to 32.2%, up 150 basis points year-over-year, driven by lower raw material costs and favorable pricing [11][30]. - Adjusted diluted EPS for the year-to-date was $2.55, a 17% increase from the previous year [14][46]. Merger and Acquisition - The merger with HanesBrands is valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value, with Gildan shareholders set to receive shares and cash for their HanesBrands stock [16][17]. - The transaction is expected to enhance Gildan's capabilities and market reach, aligning with its growth strategy [2][18]. 2025 Guidance Update - The company updated its full-year guidance, projecting revenue growth in the mid-single digits and adjusted diluted EPS in the range of $3.45 to $3.51, reflecting a 15% to 17% year-over-year increase [21][19]. - Free cash flow is expected to be approximately $400 million, down from previous guidance of above $450 million [21][19]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.226 per share, payable on December 15, 2025, to shareholders of record as of November 19, 2025 [22]. ESG Recognition - Gildan was recognized as one of Canada's Best 50 Corporate Citizens for the fourth consecutive year and featured on TIME's World's Most Sustainable Companies list [20].

Core Viewpoint - Gildan Activewear Inc. is positioned positively in the market with strong analyst recommendations and solid financial metrics ahead of its upcoming quarterly earnings report Group 1: Earnings Expectations - Wall Street anticipates earnings per share of $0.98 and revenue of approximately $914.9 million for Gildan Activewear's upcoming quarterly earnings [1][6] Group 2: Analyst Recommendations - The stock has garnered a consensus "Buy" recommendation from eight brokerages, including two "hold" ratings, three "buy" ratings, and three "strong buy" ratings [2] - National Bankshares increased their price target for GIL from C$91.00 to C$92.00, maintaining an "outperform" rating [3] - TD Securities raised their price objective from C$60.00 to C$67.00, assigning a "buy" rating [3] Group 3: Financial Metrics - GIL has a P/E ratio of approximately 18.89, a price-to-sales ratio of about 2.72, and an enterprise value to sales ratio of around 3.29, indicating a balanced valuation [4] - The company has a debt-to-equity ratio of approximately 1.39 and a current ratio of about 3.87, suggesting strong liquidity [5] - GIL offers an earnings yield of about 5.29%, making it an attractive option for investors [5]

Shirts with a tag like this are on the rise. The brand name is Comfort Colors. It's around 50 years old, and it's gaining popularity with Gen Z.The brand is known for its soft fabric, retro colors, and environmental consciousness, and its products are used by everyone from bars to musicians to fraternities for screen printing merchandise. What you may not know is Comfort Colors is owned by merchandising giant Gilden, who acquired the brand in 2015 as part of a push into print apparel. As a business, Comfort ...

Core Insights - Comfort Colors is celebrating its 50th anniversary by hosting a Game Day Pop-Up event on October 18, 2025, outside Sanford Stadium during a college football game, emphasizing community and brand heritage [2][3] Company Overview - Comfort Colors is recognized for its high-quality, soft, ring-spun cotton apparel, and is part of Gildan, a leading manufacturer of everyday basic apparel [5][6] - The brand is known for its nature-inspired hues and durability, featuring 79 vibrant shades and a commitment to sustainability through innovations like Pigment Pure™, which reduces water and energy use [4][5] Marketing and Community Engagement - The 50 Years of Spreading Good Vibes campaign connects Comfort Colors with campus culture, offering free branded treats, merchandise, and interactive experiences to engage fans and the local community [3][4] - A Greek Life Competition will reward the organization with the strongest turnout and social media presence with free Comfort Colors tees for future events [3] Future Directions - The brand aims to expand its lifestyle apparel offerings and enhance self-expression among its customers while continuing to invest in sustainability initiatives [4]

Core Points - Gildan Activewear Inc. will report its third quarter 2025 financial and operating results on October 29, 2025, with a press release before market opening and a conference call at 8:30 AM ET [1] - The conference call will include participation from key executives, including the President and CEO, COO, CFO, and Senior VP of Investor Relations [2] - Access to the conference call will be available via specific phone numbers and a live audio webcast, with a replay option for 7 days [3] Company Overview - Gildan is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, and socks to a diverse customer base, including wholesale distributors and retailers [4] - The company operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh, emphasizing strong labor, environmental, and governance practices [5]

Core Viewpoint - Gildan Activewear Inc. has announced the pricing of a US$1.2 billion offering of senior unsecured notes to fund the acquisition of Hanesbrands Inc. and refinance existing debt [1][2]. Group 1: Offering Details - The offering consists of two series of senior unsecured notes: US$600 million of 4.700% notes due October 7, 2030, and US$600 million of 5.400% notes due October 7, 2035 [1]. - The expected closing date for the offering is around October 7, 2025, subject to customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the notes will be used for the cash portion of the acquisition of Hanesbrands, refinancing Hanesbrands' existing debt, and covering related transaction fees and expenses [2]. Group 3: Company Overview - Gildan is a leading manufacturer of everyday basic apparel, including activewear, underwear, and socks, marketed under various brands such as Gildan®, American Apparel®, and Champion® [10]. - The company operates large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh, with a strong commitment to labor, environmental, and governance practices [11].