Gildan Activewear Q3 sales miss estimates on softer demand; cuts outlook
GIL•Gildan Activewear’s third-quarter net sales rose 61% year over year to $1.47 billion but missed the $1.63 billion analyst estimate. The company cut its 2026 revenue outlook to $5.4 billion-$5.5 billion from at least $6.0 billion and its adjusted diluted EPS outlook to $3.70-$3.80 from $4.65-$4.75.
1. Third-quarter results
Gildan said third-quarter sales rose 61% year over year, primarily reflecting its HanesBrands acquisition, but fell short of estimates because of softer-than-anticipated demand across Wholesale and Retail. Adjusted diluted EPS rose 54% year over year.
2. Lower 2026 outlook
The company lowered its 2026 revenue outlook to $5.4 billion-$5.5 billion from at least $6.0 billion and its adjusted diluted EPS outlook to $3.70-$3.80 from $4.65-$4.75. It withdrew its 2026–2028 objectives, citing rapid change in macroeconomic conditions.
3. Margins and buyback
Gildan said gross margin improvement was mainly due to IEEPA tariff refunds and lower manufacturing and raw material costs. It also launched a new share buyback program for up to 5% of shares.
