Canada's Gildan Q2 sales miss estimates on retail market softness
GIL•Outlook
- Gildan expects 2026 revenue at the low end of $6.0 bln to $6.2 bln range
- Company sees 2026 adjusted diluted EPS at $4.65-$4.75, up 32.5%-35% yr over year
- Gildan expects to record $220 mln in tariff refunds in 2026, with most in Q3
Overview
- Canada apparel maker's Q2 net sales from continuing operations rose 72% yr/yr but missed analyst expectations
- Adjusted EPS for Q2 beat consensus, rising 32% yr/yr
- Company to sell HanesBrands Australia for about $490 mln to reduce debt
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Miss | $1.58 bln | $1.61 bln (5 Analysts) |
| Q2 Adjusted EPS | Beat | $1.28 | $1.11 (6 Analysts) |
| Q2 Adjusted EBITDA | $420.60 mln | ||
| Q2 Adjusted EBIT | $352.30 mln | ||
| Q2 Adjusted Gross Profit | $545.40 mln |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell". The average consensus recommendation for the apparel & accessories peer group is "buy". The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago.
