Gildan Activewear Inc. reported fourth‑quarter 2025 results on February 26, 2026, delivering record revenue of $1.0785 billion, a 31.3% year‑over‑year increase driven by strong demand for its Comfort Colors line and the early contribution of the newly acquired HanesBrands assets. The company’s adjusted diluted earnings per share rose to $0.96, beating the consensus estimate of $0.94 by $0.02, or 2.1%. Adjusted operating margin expanded to 21.5%, reflecting pricing power and cost efficiencies realized through the integration of HanesBrands and the continued focus on a low‑cost, vertically integrated platform.
Gildan’s management highlighted that the HanesBrands acquisition, completed on December 1 2025, is now fully integrated. The company expects run‑rate cost synergies of approximately $250 million by the end of 2028, with $100 million realized in both 2026 and 2027. “As we look ahead to 2026, we are very excited about the HanesBrands acquisition which doubles our scale, combines iconic brands with our world‑class, low‑cost, vertically integrated platform, and unlocks a powerful engine for innovation and growth,” said President and CEO Glenn J. Chamandy.
The company also confirmed plans to build a second phase of its Bangladesh manufacturing complex, with initial production slated for the latter part of 2027. “Our strong performance this quarter underscores the effectiveness of our strategic initiatives,” added EVP, Chief Commercial Officer Chuck Ward. Gildan’s 2026 guidance projects revenue of $6.0–$6.2 billion and adjusted diluted EPS of $4.20–$4.40, signaling confidence in continued growth and the realization of integration synergies.
Despite the earnings and revenue beats, Gildan’s stock fell 5.48% in pre‑market trading on February 26. Analysts cited increased SG&A expenses, softness in international markets, and valuation concerns as key drivers of the market reaction. The company also announced a 10% increase in its quarterly dividend for 2026, underscoring its commitment to shareholder returns.
The Q4 results and forward guidance illustrate Gildan’s ability to leverage its scale and cost advantages while expanding its branded portfolio. The strong performance, coupled with the expected synergies from the HanesBrands acquisition and the expansion of manufacturing capacity, positions the company for sustained growth, even as it navigates short‑term headwinds such as higher SG&A costs and international market softness.
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