Gildan Activewear reported third quarter 2026 revenue of $1.47 billion, a 61.1% increase year-over-year driven by the HanesBrands acquisition, but significantly below the $1.62 billion analyst estimate. Adjusted diluted EPS of $1.54 also fell short of the $1.60 expectation. While the top line was pressured by macroeconomic demand softness and service constraints, the company demonstrated strong cost control as adjusted operating margins expanded to 27.0%, benefiting from substantial tariff refunds and integration synergies.
Key Highlights
- Net sales of $1.47 billion missed estimates by roughly 9%, impacted by $100 million in demand softness and $60 million in product availability constraints.
- Adjusted operating margin reached 27.0%, exceeding targets by 100 basis points, aided by $176.9 million in International Emergency Economic Powers Act (IEEPA) tariff refunds.
- Wholesale channel sales fell 6.8% to $735 million due to softer demand and lower-than-anticipated share gains in a difficult macroeconomic environment.
- Realized synergies from the HanesBrands integration helped offset historically higher SG&A levels from the acquired business, which remains a key component of the company's margin expansion strategy.