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]