Gildan Activewear Inc. announced Thursday financial results for the second quarter ended June 29, 2025 with record net sales.
“The Gildan Sustainable Growth (GSG) strategy continues to drive solid financial performance, as evidenced by our record second quarter results, driven by strong net sales growth of 12% in Activewear. As we navigate through the current fluid operating environment, we are focusing on what we can control, which is allowing us to continue to strengthen our competitive position and drive profitable top line growth. Moreover, our performance reflects the agility and resilience of our low-cost vertically integrated business model which remains the cornerstone of our ability to deliver long-term value for our stakeholders” said Glenn J. Chamandy, Gildan’s President and CEO.
Highlights
- Record net sales of $919 million, up 6.5% vs. the prior year
- Gildan recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights and is once again included on TIME’s World’s Most Sustainable Companies list
- Operating margin of 21.7%, adjusted operating margin1 of 22.7%
- GAAP diluted EPS of $0.91 and record adjusted diluted EPS1 of $0.97
- Cash flow from operations of $188 million and free cash flow1 of $154 million
- Capital returned to shareholders of $145 million through share repurchases and dividends
- Company reaffirms its full year 2025 guidance including the impact of tariffs, while narrowing its adjusted diluted EPS1 2025 guidance range
“Net sales were a record $919 million, up 6.5% over the prior year, in line with previously provided guidance of midsingle digit growth. Activewear sales of $822 million were up 12% driven by higher sales volumes and, to a lesser extent, favourable product mix and higher net prices. We continued to see market share gains in key growth categories and a positive market response to our recently introduced new products which feature key innovations, including our new Soft Cotton Technology. Furthermore, complementing solid sales to North American distributors, we observed continued momentum with National account customers, driven by our strong overall competitive positioning and as we continued to benefit from recent changes in the industry landscape,” said Gildan.
“International sales decreased by 14.1% year over year, primarily due to demand softness in certain markets. Separately, Hosiery and Underwear sales were $96 million, down 23.3% versus the prior year, mainly owing to lower sales volumes and unfavourable mix, as the category experienced continued broader market weakness during the quarter.”
The company said it generated gross profit of $289 million, or 31.5% of net sales, versus $262 million, or 30.4% of net sales, in the same period last year representing a 110-basis point improvement, which was primarily driven by lower raw materials and manufacturing costs as well as favourable pricing.
Net sales for the first six months of the year ended June 29, 2025, were $1,630 million, up 4.6% versus the same period last year.
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