Gildan Activewear (NYSE:GIL) Announces Earnings Results

Gildan Activewear (NYSE:GIL) (TSE:GIL) released its quarterly earnings results on Thursday. The textile maker reported $1.54 earnings per share for the quarter, missing analysts’ consensus estimates of $1.57 by ($0.03), Zacks reports. Gildan Activewear had a net margin of 1.28% and a return on equity of 21.03%.

Here are the key takeaways from Gildan Activewear’s conference call:

• Results and guidance fell short: Q3 sales were $1.47 billion, below the approximately $1.65 billion outlook, and adjusted EPS was $1.54. Gildan cut its 2026 revenue outlook to $5.4–$5.5 billion and adjusted EPS outlook to $3.70–$3.80, citing weaker demand and lower expected replenishment.
• Demand and execution pressures weighed on sales: Management attributed the shortfall to a softer consumer and selective retailer ordering, with unusually warm weather weighing on fleece sales and creating unfavorable mix. Retail product availability and service constraints also hurt results, though the company said these issues are largely behind it.
• Cash generation remained strong: Gildan generated $622 million of free cash flow in the first nine months and expects $700–$750 million for the year. Its 27% Q3 adjusted operating margin exceeded guidance, although tariff refunds materially supported margins.
• Integration and capital returns are priorities: The company used about $490 million of proceeds from the HAA sale to repay debt and approved a share repurchase bid for up to 5% of outstanding shares. Management remains on track for $100 million of 2026 Hanes synergies and expects $250 million in annual run-rate synergies by the end of 2028.
• Long-term targets are on hold: Gildan withdrew its previously stated 2026–2028 objectives amid uncertainty and plans to present an updated long-term outlook at an investor day intended for spring 2027. Management highlighted new product innovation expected to roll out through 2027.

Gildan Activewear Price Performance

GIL stock opened at $34.66 on Friday. The business has a fifty day moving average of $43.84 and a two-hundred day moving average of $55.17. The stock has a market cap of $6.42 billion, a price-to-earnings ratio of 30.95 and a beta of 1.15. Gildan Activewear has a 52-week low of $31.33 and a 52-week high of $73.69. The company has a quick ratio of 1.01, a current ratio of 1.93 and a debt-to-equity ratio of 1.15.

Gildan Activewear Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Wednesday, November 25th will be issued a $0.2490 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Wednesday, November 25th. Gildan Activewear’s payout ratio is presently 192.31%.

Analyst Ratings Changes

Several brokerages have weighed in on GIL. TD Cowen restated a “buy” rating on shares of Gildan Activewear in a research note on Friday. TD lowered their price target on Gildan Activewear from $80.00 to $54.00 and set a “buy” rating on the stock in a report on Thursday, September 24th. Citigroup reaffirmed a “neutral” rating on shares of Gildan Activewear in a research note on Tuesday, August 4th. BMO Capital Markets set a $64.00 price objective on shares of Gildan Activewear and gave the company an “outperform” rating in a research note on Monday, October 26th. Finally, Stifel Nicolaus set a $83.00 price target on shares of Gildan Activewear and gave the stock a “buy” rating in a research report on Friday, July 31st. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Gildan Activewear has a consensus rating of “Moderate Buy” and an average price target of $59.42.

More Gildan Activewear News

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Gildan declared a quarterly dividend of $0.249 per share, payable December 21, representing an annualized dividend of about $1.00 and a yield of roughly 2.9%. Dividend announcement
• Positive Sentiment: Third-quarter sales from continuing operations rose 61.1% year over year to $1.47 billion, with a 27.0% adjusted operating margin. Third-quarter results
• Negative Sentiment: Several analysts cut ratings or price targets: Canaccord moved GIL from Buy to Hold and lowered its target to $41 from $62; Scotiabank downgraded it to Sector Perform and cut its target to $39 from $53; and RBC reduced its target to $50 from $70, while retaining Outperform. These reductions signal weaker expectations, despite the remaining upside implied by the targets. Canaccord rating Scotiabank rating RBC rating
• Negative Sentiment: Gildan reported third-quarter EPS of $1.54, below the $1.57 consensus; revenue also missed estimates according to Zacks. The earnings shortfall may reinforce concerns about near-term performance, despite substantial year-over-year sales growth. Earnings estimates report
• Negative Sentiment: Multiple law firms publicized a securities class action covering investors who acquired Gildan shares from February 19, 2025, through June 15, 2026. The complaint alleges material misstatements or omissions, including claims related to channel stuffing; these are allegations, not proven findings. The litigation adds uncertainty and comes amid reports of a sharp share-price decline. The lead-plaintiff deadline is December 14, 2026. Class action notice

Gildan Activewear Company Profile

Gildan Activewear Inc is a Montreal, Quebec-based apparel manufacturer that produces and sells everyday basic clothing for consumers and businesses. The company’s product portfolio includes activewear, T-shirts, fleece garments, underwear, socks and hosiery, as well as other apparel basics.

Gildan sells products primarily through wholesale distributors and screen printers, who supply decorated apparel to businesses, schools, teams, organizations and retailers. Its portfolio includes the Gildan, American Apparel, Comfort Colors, Gold Toe and Anvil brands.