Gildan Activewear (NYSE:GIL) Issues Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) released its earnings results on Thursday. The textile maker reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.17, Zacks reports. Gildan Activewear had a return on equity of 21.38% and a net margin of 6.10%.Gildan Activewear’s revenue was up 72.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.97 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• Q2 results exceeded expectations on profitability: adjusted EPS rose 32% year over year to $1.28, while adjusted operating margin reached 22.3%, well above the approximately 19.7% guidance.
• Management raised 2026 guidance for adjusted EPS to $4.65–$4.75, adjusted operating margin to approximately 21.8%, and free cash flow to approximately $1 billion, while maintaining its low-20% adjusted EPS CAGR objective for 2026–2028.
• The HanesBrands integration remains ahead of plan, with approximately $100 million of 2026 synergies largely implemented and a targeted $250 million annual run-rate expected over the next three years. The planned sale of Hanes’ Australian business for approximately $490 million is expected to accelerate debt reduction and support the eventual resumption of share repurchases.
• The company expects approximately $220 million in IEEPA tariff refunds, with roughly half viewed as a recurring structural benefit from tariff-free qualifying CAFTA-DR apparel and the non-recurring portion being reinvested in Hanes marketing, promotions, product innovation, and packaging.
• Retail demand and seasonal inventory builds remained soft, particularly in June, prompting the company to move full-year revenue expectations to the low end of its $6.0–$6.2 billion range. Wholesale trends improved and key brands gained share, but management said the broader market remained difficult to call entering the third quarter.

Gildan Activewear Price Performance

Shares of NYSE:GIL traded up $1.15 during trading on Thursday, hitting $52.40. 3,843,140 shares of the stock were exchanged, compared to its average volume of 1,205,932. The company has a market cap of $9.70 billion, a PE ratio of 30.82 and a beta of 1.11. The company has a current ratio of 2.35, a quick ratio of 1.17 and a debt-to-equity ratio of 1.32. The company has a fifty day moving average price of $54.51 and a two-hundred day moving average price of $59.48. Gildan Activewear has a 12-month low of $46.00 and a 12-month high of $73.69.

Gildan Activewear Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.249 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. Gildan Activewear’s payout ratio is 58.82%.

Hedge Funds Weigh In On Gildan Activewear

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Invesco Ltd. increased its position in shares of Gildan Activewear by 6.0% in the fourth quarter. Invesco Ltd. now owns 216,434 shares of the textile maker’s stock valued at $13,518,000 after buying an additional 12,261 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in Gildan Activewear during the 4th quarter valued at $383,000. State of Tennessee Department of Treasury grew its holdings in Gildan Activewear by 8.8% during the 4th quarter. State of Tennessee Department of Treasury now owns 89,766 shares of the textile maker’s stock valued at $5,865,000 after buying an additional 7,274 shares during the last quarter. Mackenzie Financial Corp increased its position in Gildan Activewear by 41.2% during the fourth quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after buying an additional 2,001,279 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. purchased a new position in Gildan Activewear during the fourth quarter worth $880,000. 82.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on GIL. Weiss Ratings cut Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, May 18th. Scotiabank reaffirmed a “sector outperform” rating and set a $65.00 price objective (down from $72.00) on shares of Gildan Activewear in a report on Wednesday, June 17th. Scotia cut their price objective on Gildan Activewear from $72.00 to $65.00 and set a “sector outperform” rating for the company in a research report on Wednesday, June 17th. UBS Group reissued a “buy” rating on shares of Gildan Activewear in a report on Friday, July 17th. Finally, Stifel Nicolaus set a $80.00 target price on shares of Gildan Activewear and gave the stock a “buy” rating in a research report on Monday, July 20th. Thirteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Gildan Activewear presently has an average rating of “Moderate Buy” and a consensus target price of $78.21.

About Gildan Activewear

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.