Gildan Activewear's Q2 sales beats, adjusted EPS rises

Gildan Activewear

31/07/2025 11:54

Overview

Gildan Q2 2025 net sales rise 6.5%, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 2025 beats consensus, reflecting strong operational performance

Company reaffirms full-year 2025 guidance, narrows adjusted EPS range

Outlook

Gildan reaffirms full-year 2025 guidance, narrows adj EPS to $3.40-$3.56

Company expects 2025 revenue growth up mid-single digits

Full-year adjusted operating margin to rise by ~50 basis points

Capex to be approximately 5% of sales in 2025

Free cash flow to exceed $450 mln in 2025

Q3 net sales to rise low single digits year over year

Q3 adjusted operating margin to match Q2 2025 level

Result Drivers

ACTIVEWEAR GROWTH - Activewear sales rose 12% driven by higher volumes, favorable product mix, and higher net prices

INTERNATIONAL SALES DECLINE - International sales fell 14.1% due to demand softness in certain markets

GROSS MARGIN IMPROVEMENT - Gross margin improved by 110 basis points due to lower raw material and manufacturing costs and favorable pricing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$918.50 mln
$907.10 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.97
$0.95 (7 Analysts)
Q2 EPS
$0.91
Q2 Adjusted Net Income
$145.90 mln
Q2 Adjusted EBITDA
$246.30 mln
Q2 Adjusted EBIT
$208.70 mln
Q2 Adjusted Gross Profit
$289.40 mln
Q2 Basic EPS
$0.91


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX9Qjhz7

(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.)