Core Insights - Gildan Activewear's Q3 earnings exceeded expectations, with adjusted per-share earnings at $1, surpassing analysts' estimates of $0.98 [1] - The company reported a 2.2% year-on-year growth in Q3 sales, reaching $911 million, driven by a 5.4% increase in the activewear segment [2] - Despite the sales increase, net earnings declined from $131.5 million in Q3 2024 to $120.2 million in Q3 2025 [3] Sales Performance - Activewear sales contributed positively with a 5.4% year-on-year increase due to a favorable product mix and higher net prices [2] - Hosiery and underwear sales experienced a significant decline, dropping over 22% year-on-year to $80 million, attributed to weak demand and unfavorable product mix [2] Acquisition Plans - The company plans to acquire HanesBrands for $2.2 billion in cash and stock, expected to close in late 2025 or early 2026 [4] - The CFO expressed confidence in the acquisition as a beneficial path forward for Gildan [4][5] Financial Guidance - Gildan adjusted its guidance for the remainder of 2025, raising its projected adjusted operating margin increase from 50 basis points to 70 basis points [6] - The company expects capital expenditures to be 4% of sales, down from the previously projected 5% [6] Supply Chain Considerations - Companies are hesitant to shift their supply chains to Gildan's vertical factories due to tariff-related uncertainties [7] - The CEO noted that supply chain adjustments should not be knee-jerk reactions, emphasizing the potential for further optimization and exploration of new product categories [8]

Company Investment - Interloop Limited is investing $35.2 million to establish a manufacturing facility in Egypt's Suez Canal Economic Zone (SCZONE) [1][2] - The facility will initially focus on hosiery production and is expected to be fully export-oriented by 2027, creating over 1,000 jobs [2][3] Strategic Importance - The investment is described as a "strategic next step" for Interloop, aimed at building a multi-origin, tech-enabled hub for its customers [2][4] - The 650,000-square-foot facility will provide direct access to key markets in the U.S., Europe, the Middle East, and Africa, enhancing the company's ability to serve global customers with shorter lead times and competitive costs [2][3] Regional Economic Context - Egypt's ready-made garment exports increased by 17% to $2.27 billion in the first 10 months of 2024, indicating a growing market for foreign investors [5] - Other foreign investments in the region include Turkish manufacturer Denim Rise's $8.8 million investment and Eroğlu Holding's $40 million investment in the same industrial zone [6]