Gildan Activewear Inc. announced on Thursday financial results for the second quarter ended June 28, 2026. The company also announced that it has entered into a definitive agreement to divest its HanesBrands Australian Business to BBFIT Investments Pte Ltd for an enterprise valuation of approximately $700 million Australian dollars (or approximately USD$490 million), subject to customary purchase price adjustments.
“The Company had communicated its intention to pursue a sale of HAA and announced the launch of a formal sale process in its fourth quarter 2025 earnings release, at which time the business was classified as held for sale and reported as discontinued operations,” it explained in a news release.
The transaction is expected to close in the second half of 2026, subject to the receipt of required regulatory approvals and customary closing conditions. Proceeds from the transaction will be used to pay down a portion of the company’s outstanding debt, accelerating Gildan’s return to the midpoint of its target leverage framework of 1.5x to 2.5x net debt to trailing twelve months pro forma adjusted EBITDA, it said.
“The integration of HanesBrands continues to progress as expected. The Company is well on pace to generate approximately $100 million in targeted synergies for 2026, with the vast majority of synergy-capture initiatives planned for 2026 already implemented. We also continue to expect to realize approximately $250 million of annual run-rate cost synergies over the next three years and continue to pursue additional synergy-capture opportunities beyond our synergy target as the integration progresses,” it said.
“With regards to previously communicated integration initiatives to accelerate footprint optimization, we completed our initial supply chain footprint rationalization and we remain in the process of reallocating production volumes across our consolidated network leveraging Gildan’s low-cost vertically integrated manufacturing operations to support synergy capture. The Company will continue to optimize and increase capacity through 2026 to support growth into 2027. Furthermore, distribution capacity is being optimized and planning efforts remain on track to standardize IT systems across facilities and key supply chain and manufacturing processes, further driving efficiencies.”
“We delivered strong results this quarter as our teams continued to execute with discipline against our strategic priorities. We continue to make excellent progress integrating HanesBrands and capturing synergies, while leveraging the combined strength of our brands, manufacturing network, and commercial capabilities, and investing strategically in innovation. While we remain mindful of the external environment and given the strength of our business fundamentals and the momentum we are building, our focus could not be clearer: control what we can control, execute our strategy, capture the significant opportunities ahead and drive profitable growth and long-term
shareholder value,” said Glenn J. Chamandy, Gildan’s President and CEO.
Second quarter net sales from continuing operations were $1.58 billion, up 72.3% over the prior year. Wholesale sales were $769 million compared to $781 million, down 1.5% versus the prior year, and down 5.8%. Retail sales were $813 million versus $137 million in the prior year. The company generated gross profit of $460 million, or 29.1% of net sales, versus $289 million, or 31.5% of net sales, in the same period last year.
Year-to-date Operating Results
Net sales from continuing operations for the first six months ended June 28, 2026, were $2.75 billion, up 68.6% versus the same period last year. Wholesale sales were $1.32 billion, down $86 million or 6.1%. Retail sales were $1.43 billion, up $1.20 billion versus the same period last year.
Gildan said it generated gross profit of $738 million, up $227 million versus the prior 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 and Polo Ralph Lauren® also under a licensing agreement.
Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Asia.
More from Retail Insider:
