Canada's Gildan Q2 sales miss estimates on retail market softness

Gildan Activewear

30/07/2026 11:13

Overview
Canada apparel maker's Q2 net sales from continuing operations rose 72% yr/yr but missed analyst expectations
Adjusted EPS for Q2 beat consensus, rising 32% yr/yr
Company to sell HanesBrands Australia for about $490 mln to reduce debt

Outlook
Gildan expects 2026 revenue at the low end of $6.0 bln to $6.2 bln range
Company sees 2026 adjusted diluted EPS at $4.65-$4.75, up 32.5%-35% yr over yr
Gildan expects to record $220 mln in tariff refunds in 2026, with most in Q3

Result Drivers
HANESBRANDS ACQUISITION - Net sales surge mainly reflected the addition of HanesBrands, though volumes were partially offset by integration-related inventory reductions and the non-recurrence of pre-buying ahead of pricing actions
TARIFF REFUNDS AND COST INITIATIVES - Adjusted gross margin improved due to HanesBrands contribution, lower raw material costs, and a $25 mln benefit from U.S. tariff refunds, partially offset by ongoing tariff costs
RETAIL MARKET SOFTNESS - Retail sales growth from the acquisition was tempered by broader market softness, cautious inventory builds at large retailers, and lower sell-in from inventory reduction

Company press release: ID:nGNX1MDyKj

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.58 bln
$1.61 bln (5 Analysts)
Q2 Adjusted EPS
Beat
$1.28
$1.11 (6 Analysts)
Q2 Adjusted EBITDA
 
$420.60 mln
 
Q2 Adjusted EBIT
 
$352.30 mln
 
Q2 Adjusted Gross Profit
 
$545.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
July 29 - VF Corp beats Q1 revenue estimates, raises FY27 outlook
July 28 - Rocky Brands Q2 profit beats on on tariff refunds, strong demand
July 30 - Adidas Q2 revenue rises 14% on DTC and e-commerce growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)