Gildan Reports Record Second Quarter Revenue and Adjusted Diluted EPS¹ and Updates its Full Year 2025 Guidance

Core Insights - Gildan Activewear Inc. reported record second quarter results with net sales of $919 million, reflecting a 6.5% increase year-over-year, driven by a 12% growth in Activewear sales [3][7][29] - The company reaffirmed its full year 2025 guidance while narrowing the range for adjusted diluted EPS to between $3.40 and $3.56, indicating a year-over-year increase of approximately 13% to 19% [16][20] - Gildan's Sustainable Growth strategy is credited for the strong financial performance, showcasing the resilience of its low-cost vertically integrated business model [2][15] Financial Performance - Gross profit for Q2 2025 was $289 million, representing 31.5% of net sales, an improvement from 30.4% in the same period last year [4][27] - Operating income reached $199 million, or 21.7% of net sales, compared to $141 million, or 16.4% of net sales in the prior year [6][27] - Adjusted diluted EPS for Q2 2025 was a record $0.97, up 31.1% from $0.74 in Q2 2024 [8][43] Sales Breakdown - Activewear sales totaled $822 million, up 12% year-over-year, while Hosiery and Underwear sales decreased by 23.3% to $96 million [3][29] - Year-to-date net sales for the first half of 2025 were $1,630 million, a 4.6% increase compared to the same period last year [9][27] - International sales saw a decline of 14.1% year-over-year, primarily due to demand softness in certain markets [3][29] Cost Management - SG&A expenses were significantly reduced to $82 million from $124 million in the prior year, reflecting a decrease in costs related to the proxy contest and leadership changes [5][27] - The company generated cash flow from operations of $188 million, with free cash flow amounting to $154 million [7][14] Shareholder Returns - Gildan returned $145 million to shareholders through share repurchases and dividends [7][14] - A quarterly dividend of $0.226 per share was declared, payable on September 15, 2025 [19] ESG Recognition - Gildan was recognized as one of the Best 50 Corporate Citizens in Canada and included in TIME's World's Most Sustainable Companies list [18]