Gildan Activewear Q3 sales miss estimates on lower volumes

Gildan Activewear

29/10/2025 10:55

Overview

Gildan Q3 net sales of $911 mln, missing analyst expectations

Adjusted EPS for Q3 beats analyst expectations

Company announces proposed merger with HanesBrands, closing expected by early 2026

Outlook

Gildan expects 2025 revenue growth to be up mid-single digits

Company sees 2025 adjusted diluted EPS between $3.45 and $3.51

Gildan projects 2025 free cash flow to be approximately $400 mln

Result Drivers

ACTIVEWEAR SALES - Sales increased 5.4% driven by favorable product mix and higher net prices

GROSS MARGIN IMPROVEMENT - Gross margin improved by 250 basis points due to lower manufacturing costs and favorable pricing

HOSIERY AND UNDERWEAR DECLINE - Sales dropped 22.1% due to lower volumes and market weakness

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$910.60 mln
$914.86 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$1
$0.97 (8 Analysts)
Q3 EPS
$0.80
Q3 Adjusted Net Income
$148.80 mln
Q3 Adjusted EBITDA
$248.70 mln
Q3 Adjusted EBIT
$211.60 mln
Q3 Adjusted Gross Profit
$306.60 mln
Q3 Basic EPS
$0.81


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX2w42PB

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