Q2: Gilden Lost $50M

Hanes CoolDRI Women’s Crop Tank with Built-in Shelf Bra, 3-Pack. $34; and Women’s Comfywear Pajama Set, $24.99, currently on the Hanes website.

Gildan lost $50 million on sales of 1.5825 billion in the second quarter, compared to a profit of $137.9 million on sales of $918.5 million in Q2 2025, before it acquired Hanes later that year.

As it announced the Q2 results, Gildan revealed that it reached agreement to sell a variety of Australian assets to Brett Blundy (see separate article), and provided full year guidance. For all of 2026, the company said it expected: “revenue to be at the low end of the previously communicated range of $6.0 billion to $6.2 billion; full year adjusted operating margin of approximately 21.8%, compared to previous guidance of approximately 20%; adjusted diluted EPS in the range of $4.65 to $4.75, an increase of approximately 32.5% to 35% year over year, compared to previous guidance of $4.20 to $4.40; Capex to come in at approximately 3% of net sales; free cash flow to be approximately $1.0 billion, compared to previous guidance of above $850 million.”

Gildan added that 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.”

The company noted that “although the retail environment remains dynamic, with some retailers maintaining a disciplined approach to inventory management amid ongoing economic uncertainty, we continue to see opportunities driven by consumer demand for innovative, high-quality products and retailers’ focus  on strategic partnerships and supply chain flexibility.”