Canada's Gildan Activewear Q1 sales rise 64%, beat estimates on HanesBrands acquisition

Gildan Activewear

30/04/2026 11:42

Overview

Canada apparel maker's Q1 sales rose 64% yr/yr, beating analyst expectations

Adjusted diluted EPS for Q1 fell 27% yr/yr to $0.43

Company maintained 2026 guidance and said HanesBrands integration is on track

Outlook

Gildan maintains 2026 revenue guidance at $6.0 bln to $6.2 bln

Company expects 2026 adjusted diluted EPS of $4.20 to $4.40

Gildan sees Q2 net sales at about $1.6 bln and adjusted operating margin near 19.7%

Result Drivers

HANESBRANDS ACQUISITION - Q1 sales growth was mainly driven by the consolidation of HanesBrands, which also contributed to higher retail sales and improved adjusted gross profit

INVENTORY REDUCTION - Proactive reduction of inventory across customer channels temporarily reduced wholesale volumes and overall sell-in

PRICING INITIATIVES - Improved adjusted gross margin was mainly due to pricing actions to offset tariffs, the HanesBrands contribution, and lower raw material and manufacturing costs

Company press release: ID:nGNX8RkQXV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.17 bln
$1.15 bln (6 Analysts)
Q1 Adjusted EBITDA
$221.10 mln
Q1 Adjusted EBIT
$166.80 mln
Q1 Adjusted Gross Profit
$384.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 12 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)