Gildan: Sales +2.2%, Earnings -8.6%

Gildan Heavy Cotton Women’s T-shirt and Performance Men’s BareSoft Knit Boxers offered on the company website. 

Gildan Q3 net earnings fell 8.6% to $120.2 million, as sales rose 2.2% to $910.6 million. The Montreal-based company, which reports in U.S. dollars, announced in August a “definitive merger agreement to acquire HanesBrands,” which it expects to close later this year or in early 2026. In the same quarter last year, Gildan reported net earnings of $131.5 million on sales of $891.1 million. 

During the three months ended September 28, 2025, the company stated activewear sales were up 5.4% to $831 million “driven by a favorable 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.”

It continued: “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, unfavorable 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.”

Looking ahead, Gildan said it expected “revenue growth for the full year to be up mid-single digits, in line with previous guidance.” In 2024 the firm earned $401 million on sales of $3.271 billion. For 2025 it predicted “adjusted diluted EPS in the range of $3.45 to $3.51, up between approximately 15% and 17% year over year, compared to our previous guidance of $3.40 to $3.56; and free cash flow to be approximately $400 million, compared to previous guidance of ‘above $450 million’ “

In 2024, before the proposed combination with Hanes, (a company which is now focused on underwear), 87% of Gildan’s sales were in activewear, with only 13% of its sales in hosiery and underwear. Gildan offers men’s and boys’ underwear and women’s panties under the Gildan, BareSoft and EZBreeze labels. A range of hosiery is sold under the Gildan, GoldToe, Peds, MediPeds and Powersox brands.  

In announcing the latest financials, CEO Glenn J. Chamandy declared “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 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.”