Gildan Activewear Reports Strong Q2 Results and Raises Full-Year Outlook
Gildan Activewear (NYSE: GIL) reported second-quarter results that were significantly boosted by its acquisition of HanesBrands. Continuing-operations sales rose 72.3% year-over-year to $1.58 billion, with adjusted diluted EPS increasing 32% to $1.28. The company raised its full-year earnings outlook for 2026 despite softer retail conditions and expects approximately $220 million in IEEPA tariff refunds. Gildan is targeting about $100 million in synergies during the year, with a longer-term goal of achieving $250 million annually over three years. The company also announced plans to sell its Australian HanesBrands business for approximately $490 million, which will be used to reduce debt and potentially restart share repurchases. Wholesale fundamentals remained healthy despite broader market declines in the second quarter. Retail sales were heavily influenced by the acquisition of HanesBrands but faced challenges due to cautious inventory management among retailers.
Tickers: $GIL
Topics: acquisition_impact financial_results guidance_update