Gildan Activewear Inc., announced Thursday financial results for the first quarter ended March 29, 2026, indicating a record first quarter net sales.
“We are pleased with our first quarter performance, reflecting disciplined execution across the organization and continued progress against our strategic priorities. We advanced our integration initiatives as planned, with early actions reinforcing our operating model and strengthening our ability to drive efficiency and synergy capture. While the external environment remains uncertain, we are focused on what we can control — driving operational excellence, advancing our integration of HanesBrands, maintaining cost discipline and consistent execution — all supported by our low-cost vertically integrated platform and strong balance sheet, which position us well to deliver on our strategic and financial objectives,” said Glenn J. Chamandy, Gildan’s President and CEO.
Highlights
- Record first quarter net sales from continuing operations of $1.17 billion up 63.8% over the prior year
- Operating margin of (0.1)%, adjusted operating margin of 14.3%
- GAAP diluted loss per share from continuing operations of $0.30 and adjusted diluted EPS
from continuing operations of $0.43 - Integration initiatives progressing as planned; Company well on pace to realize approximately $100 million in synergies in 2026 and continues to expect approximately $250 million of annual run-rate cost synergies over the next three years
- Company maintains its full year 2026 guidance and maintains its three-year objectives for the 2026–2028 period
- This quarter represents the first full fiscal reporting period during which the results of HanesBrands are fully
consolidated into the company’s financial statements
“The HanesBrands Australian Business has been classified as held for sale and reported as discontinued operations since the fourth quarter of 2025. As such, the operating results discussed herein are on the basis of continuing operations. Furthermore, consistent with the announcement made during our last quarterly results, we are now transitioning to disaggregating our net sales into Wholesale and Retail. “Wholesale” comprises sales to distributors, screenprinters, embellishers and global lifestyle brand (GLB) customers. “Retail” comprises sales to mass merchants, department stores, national chains, specialty retailers, online retailers and directly to consumers,” said Gildan.
“Net sales from continuing operations were $1.17 billion, up 63.8% over the prior year, in line with guidance of approximately $1.15 billion. The year over year increase reflects the HanesBrands acquisition partially offset by integration initiatives undertaken to optimize our manufacturing footprint and accelerate synergy capture. Compared with proforma net sales from continuing operations1 of $1.29 billion, the year over year decline was primarily driven by lower volumes stemming from our proactive inventory reduction across customer channels, which temporarily reduced sell-in, as previously communicated. Wholesale sales were $552 million compared to $626 million, down 11.9% versus the prior year due to the aforementioned proactive inventory reduction across our combined customer channels as well as the non-recurrence of preemptive buying ahead of tariffs in the comparable period last year.”
Gildan is a leading manufacturer of everyday basic apparel. The company’s product offering includes activewear, underwear, socks, and intimates sold to a broad range of customers, including wholesale distributors, screenprinters,embellishers, retailers or e-commerce platforms, as well as global lifestyle brand companies and directly to consumers. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, Hanes®, Comfort Colors®, American Apparel®, ALLPRO™, GOLDTOE®, Peds®, Bali®, Playtex®, Maidenform®, Bonds®, as well as Champion® which is under an exclusive licensing agreement for the printwear channel in the U.S. and Canada.
Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Asia.
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