- Gildan Activewear (TSX/NYSE:GIL) closed out Q3 with record revenue and adjusted diluted earnings per share
- Gildan is a top global apparel manufacturer
- Gildan Activewear stock has added 26.21 per cent year-over-year and 209.31 per cent since 2020
Gildan Activewear (TSX/NYSE:GIL) closed out Q3 with record revenue and adjusted diluted earnings per share. Here are the highlights:
- Record Q3 revenue of US$911 million, up by 2.2 per cent year-over-year (YoY), driven by activewear sales of US$831 million, up by 5.4 per cent YoY, thanks to a favourable product mix and higher net prices.
- Gross profit of US$307 million, or 33.7 per cent of net sales, up from US$278 million and 31.2 per cent YoY, supported by lower manufacturing costs, price increases to offset US tariffs, as well as lower raw materials costs.
- Operating margin of 21.1 per cent and record adjusted operating margin of 23.2 per cent.
- GAAP diluted earnings per share (EPS) of US$0.80 and record adjusted diluted EPS of US$1, the latter up by 17.6 per cent from US$0.85 YoY.
- Declared a dividend of US$0.226 per share, payable on December 15, 2025, to shareholders of record as of November 19, 2025.
Gildan’s acquisition of HanesBrands, representing US$2.2 billion in equity value and US$4.4 billion in enterprise value, is expected to close in late 2025 or early 2026, subject to HanesBrands shareholder approval and other customary conditions.
Understandably, the company has not integrated the transaction into its outlook for the rest of 2025, which is confident in continuing to deliver strong financial performance. Here’s a breakdown of management’s expectations:
- Full-year revenue growth in the mid-single digits, in line with previous guidance.
- A 70 basis point increase in adjusted operating margin, up from 50 basis points in previous guidance.
- Capex at 4 per cent of sales, down from 5 per cent.
- Adjusted diluted EPS between US$3.45 and US$3.51, up by 15-17 per cent from US$3.40 to US$3.56.
- Free cash flow of US$400 million, down from management’s previous US$450 million estimate.
Check out a full summary of Gildan Activewear’s financial and operational results for Q3 ending September 28, 2025, in Wednesday’s news release.
Management commentary
“We were pleased with this quarter’s results as we continue to drive profitable growth, supported by strong net sales growth of 5.4 per cent in Activewear, which allowed us to deliver record adjusted diluted EPS,” Glenn J. Chamandy, Gildan’s president and chief executive officer, said in a statement. “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, which is expected to close later this year or early in 2026.”
About Gildan Activewear
Gildan is a top global apparel manufacturer focused on activewear, underwear and socks. Its brands include Gildan, American Apparel, Comfort Colors, GOLDTOE and Peds.
Gildan Activewear stock (TSX/NYSE:GIL) last traded at C$85.37. The stock has added 26.21 per cent year-over-year and 209.31 per cent since 2020.
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