Gildan Earns $259.4 M

Previously on the Hanes website: Women’s Natural Lift Underwire Bra $19.99; and Women’s Racerback Sports Bra with Compression, $18.

Gildan reported third quarter net income of $259.4 million on net sales of $1.4666 billion, noting that the integration of recently acquired Hanes is “progressing as expected with the vast majority of synergy capture initiatives planned for 2026 already implemented,” and that it is “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 by the end of 2028.”

For the full year, Gildan expects revenue “to be in the range of $5.4 billion to $5.5 billion, adjusted operating margin of approximately 20%, adjusted diluted EPS in the range of $3.70 to $3.80 and free cash flow to be $700 million to $750 million.” The firm explained that it had updated its 2026 guidance “to reflect the third quarter sales shortfall and its expectation that these softer demand conditions will persist into the fourth quarter. The reduction in full year 2026 guidance compared with our previous guidance reflects both the impacts realized in the third quarter and our updated expectations for the fourth quarter, and is attributable to several factors, including, in respect of net sales:

• Approximately $300 million (~$240 million in wholesale and ~$60 million in retail) reflecting softer than anticipated demand by end consumers, with the demand recovery assumed in the company’s previous outlook not materializing as expected, as well as unfavorable product mix primarily due to lower than anticipated fleece shipments;

• Approximately $145 million (~$45 million in wholesale and ~$100 million in retail) reflecting lower than anticipated customer replenishment as customers manage working capital levels;

• Approximately $75 million reflecting product availability and service constraints associated with evolving demand and order patterns, primarily in retail; and

• Approximately $30 million reflecting lower than anticipated net selling prices across customers and channels.”

Gildan concluded: “since the company reported its second quarter results, the macroeconomic environment has changed rapidly, with rising interest rates and persistent inflation in household essentials weighing on demand for apparel by end consumers across both the wholesale and retail channels.”