Gildan Q1 Sales Jump 63.8% to $1.17B with 14.3% Margin
GIL•Gildan Activewear reported record Q1 net sales of $1.17 billion, up 63.8% year-over-year, with adjusted operating margin of 14.3% and adjusted EPS of $0.43. The company affirmed realization of $100 million in 2026 integration synergies and maintained full-year guidance plus $250 million annual run-rate cost synergy target for 2026–2028.
1. Q1 Financial Performance
Gildan recorded net sales of $1.17 billion in Q1, up 63.8% year-over-year, driven by wholesale sales of $552 million and retail sales of $614 million following the full consolidation of HanesBrands. GAAP diluted loss per share was $0.30, while adjusted EPS reached $0.43.
2. Integration Synergies Progress
Integration initiatives with HanesBrands are on track, with approximately $100 million in synergies expected in 2026. The company maintains a target of $250 million in annual run-rate cost synergies over 2026–2028 as it optimizes its low-cost vertically integrated platform.
3. Profitability and Outlook
Adjusted operating margin stood at 14.3%, exceeding guidance of roughly 12.9%, while adjusted gross profit margin improved to 33.0% after accounting for a $106 million inventory fair value charge. Gildan affirmed its full-year 2026 guidance and three-year strategic objectives.
