Gildan Activewear Inc. has announced financial results for the third quarter ended September 28, 2025, indicating it was a record quarter with net sales of $911 million.
“We were pleased with this quarter’s results as we continue to drive profitable growth, supported by strong net sales growth of 5.4% in Activewear which allowed us to deliver record adjusted diluted EPS. Our record-setting third quarter results once again showcase the effectiveness of the Gildan Sustainable Growth (GSG) strategy to drive strong financial performance, and we’re excited about the next phase of our growth journey. Our keen focus on execution, combined with Gildan’s low-cost vertically integrated business model, will be further enhanced by the added capabilities and reach introduced through the HanesBrands acquisition, which is expected to close later this year or early in 2026.” said Glenn J. Chamandy, Gildan’s President and CEO, in a news release.
The company reported that net sales were $911 million, up 2.2% over the prior year, in line with previously provided guidance for the quarter of low single-digit growth. Activewear sales of $831 million were up 5.4% driven by a favourable product mix and higher net prices.
“Solid sales to North American distributors were complemented by sustained momentum with National account customers, driven by our strong overall competitive positioning. We continued to see robust demand for Comfort Colors® and our innovative pipeline continues to drive excitement, with our new soft cotton technology and new brands such as Champion® and ALLPRO™. Separately, Hosiery and underwear sales were $80 million, down 22.1% versus the prior year. The year over year drop in sales was mainly owing to lower sales volumes, reflecting as expected a timing shift of shipments into the fourth quarter, and, to a lesser extent, unfavourable mix, as the category experienced continued broader market weakness during the quarter. Finally, International sales were $60 million versus $64 million last year, a decrease of 6.1% year over year, primarily due to ongoing demand softness across markets,” it said.
“The Company generated gross profit of $307 million, or 33.7% of net sales, versus $278 million, or 31.2% of net sales, in the same period last year representing a 250-basis point improvement, which was mainly a result of lower manufacturing costs, complemented by favorable pricing reflecting price increases implemented to offset the initial impact from tariffs, and to a lesser extent, the benefit from lower raw materials costs.”
On August 13, Gildan announced that it entered into a definitive merger agreement to acquire HanesBrands, a leading global apparel company with a portfolio of iconic brands. Under the terms of the merger agreement, HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock, representing a total equity value of approximately $2.2 billion and an enterprise value of approximately $4.4 billion, based on the closing price of Gildan’s common shares on August 11. The transaction, unanimously approved by the Boards of Directors of both companies, is expected to close in late 2025 or early 2026, subject to HanesBrands shareholder approval and the satisfaction or waiver of other customary closing conditions.
“Delivering another strong quarter despite the fluid macroeconomic environment and a generally softer demand environment is a testament of our continued commitment to execute our Gildan Sustainable Growth (GSG) strategy and underscores our confidence in our ability to achieve our objectives, as we continue to drive growth in key product categories and channels. We believe that our vertically integrated business model, paired with our strong industry positioning should support continued strong financial performance,” it said.
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