Gildan Activewear Q4 EPS Misses at $0.96, Net Sales Rise 31.3%
Gildan Activewear’s Q4 EPS rose 15.7% YoY to $0.96 but missed the $1.31 consensus, while net sales increased 31.3% to $1.079 B, falling short of the $1.125 B estimate. Adjusted gross margin widened 140 bps to 32.2%, and FY2026 revenue guidance was set at $6.0–6.2 B with EPS of $4.20–4.40.
1. Q4 2025 Results
Gildan Activewear reported Q4 EPS of $0.96, up 15.7% year over year but below the $1.31 estimate. Revenue rose 31.3% to $1.0785 B, missing the $1.125 B consensus and delivering 4.9% organic growth excluding HanesBrands.
2. Margin Expansion
Adjusted gross profit increased 37.3% to $347.4 M, boosting gross margin by 140 bps to 32.2%. Operating income rose 27.3% to $222.9 M, though operating margin dipped 60 bps to 20.7% due to HanesBrands’ lower margins.
3. Cash Flow and Debt
Operating cash flow climbed 20.9% to $606 M, leading to free cash flow of $493 M after $114 M in capital expenditures. The company ended 2025 with net debt of $4.42 B and a leverage ratio of 3.0x pro forma adjusted EBITDA.
4. 2026 Outlook
For 2026, revenue is projected at $6.0–6.2 B with adjusted EPS of $4.20–4.40 and an operating margin around 20%. First-quarter sales are expected around $1.15 B with a 12.9% adjusted operating margin, reflecting integration costs and inventory adjustments.