Gildan reports record revenue amid HanesBrands integration

Canadian apparel manufacturer Gildan Activewear Inc. has reported record net sales for the first quarter ended March 29, 2026. The results represent the first full fiscal period following the consolidation of HanesBrands into the group’s financial statements.

Net sales from continuing operations reached 1.17 billion dollars, representing a 63.8 percent increase compared to the prior year. This performance aligned with the company’s previous guidance of approximately 1.15 billion dollars. The substantial year-over-year rise was primarily attributed to the acquisition of HanesBrands, though it was partially offset by strategic integration initiatives aimed at optimizing manufacturing. When compared to proforma net sales of 1.29 billion dollars, revenue saw a decline.

Management attributed this to lower volumes resulting from a proactive reduction of inventory across customer channels, a move intended to streamline the supply chain during the integration process.

Shift in sales distribution and brand performance

The company has transitioned to disaggregating net sales into two primary channels: wholesale and retail. Wholesale sales were 552 million dollars, down 11.9 percent from the previous year. This was influenced by the aforementioned inventory reductions and the non-recurrence of preemptive buying that occurred ahead of tariffs in the same period last year.

Retail sales rose to 614 million dollars from 85 million dollars in the prior year. This shift reflects the inclusion of HanesBrands and higher selling prices, with key underwear brands gaining market share during the quarter. Profitability and operating marginsGildan reported an operating loss of one million dollars for the quarter, compared to an income of 130 million dollars in the previous year. However, adjusted operating income reached 167 million dollars, an increase of 31 million dollars year-over-year.

Integration progress and synergy targets

The integration of HanesBrands is progressing as scheduled. Gildan president and chief executive officer, Glenn J. Chamandy, noted that the company is on pace to realize approximately 100 million dollars in synergies in 2026. The long-term objective remains an annual run-rate of 250 million dollars in cost synergies over the next three years.

Despite an uncertain macroeconomic environment, Gildan has maintained its full-year 2026 guidance:Revenue is projected between 6 billion dollars and 6.2 billion dollars. Full-year adjusted operating margin is expected to be approximately 20 percent. Adjusted diluted earnings per share (EPS) are forecast in the range of 4.20 dollars to 4.40 dollars.

For the second quarter of 2026, the company expects net sales of approximately 1.6 billion dollars. The board of directors also declared a quarterly cash dividend of 0.249 dollars per share, payable on June 15, 2026.