Gildan Activewear: Q3 sales rise but profit declines

Canadian textile group Gildan Activewear Inc. has concluded the third quarter of the 2025 financial year with a slight increase in sales. Profit decreased but exceeded market expectations, according to an interim report published by the company on Wednesday.

In the most recent quarter, which ended on September 28, group sales reached 910.6 million dollars. This represents a 2.2 percent increase on the same period last year, reaching a new record high.

The growth driver was the activewear division, with an increase of 5.4 percent to 830.6 million dollars. Management attributed the increase to higher prices and a more favourable product mix. In contrast, sales in the hosiery and underwear segment fell by 22.1 percent to 80.0 million dollars.

Review of Gildan's financial results

The gross margin increased from 31.2 to 33.7 percent compared to the same quarter last year. According to the company, this was due to lower raw material and production costs, as well as price increases intended to offset higher customs duties.

Due to higher selling, general and administrative expenses and restructuring costs, operating profit of 192.1 million dollars was slightly below the previous year's level, a decrease of 0.4 percent. However, adjusted for special effects, it rose by 6.1 percent.

Reported net profit fell by 8.6 percent to 120.2 million dollars compared to the same quarter last year. In contrast, the surplus adjusted for special effects grew by 8.1 percent to 148.8 million dollars, exceeding analysts' expectations.

Management revises its earnings forecast

In light of recent developments, the group has specified its annual forecast for adjusted diluted earnings per share. It now expects between 3.45 and 3.51 dollars, which would represent an increase of 15 to 17 percent compared to the previous year. The previous forecast was between 3.40 and 3.56 dollars.

The sales target remained unchanged. For the current financial year, management therefore continues to expect an increase in the mid-single-digit percentage range.

CEO Glenn Chamandy explained that in the coming year, the group will benefit from additional capacity and reach following the acquisition of competitor Hanesbrands, which was agreed in August. The transaction is expected to be completed by the beginning of 2026 at the latest.

This article was translated to English using an AI tool.

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