Key Takeaways
• Gildan (asi/56842) reported a 61.1% increase in third-quarter sales.
• Despite the growth, President and CEO Glenn Chamandy cited weaker-than-expected demand.
Gildan Activewear (asi/56842) released its third-quarter financial results, reporting sales growth, but acknowledging that the results weren’t up to what management had hoped.
According to a release on Nov. 5, the Counselor Top 40 supplier saw a 61.1% year-over-year net sales increase, with an operating margin of 24.1%. It also reported cash flow of $633 million from operating activities and free cash flow of $606 million.
In the release, Gildan said that the company is “well on pace to realize approximately $100 million in synergies in 2026 and continues to expect approximately $250 million of annual run-rate cost synergies by the end of 2028,” but officials at the company say that the results were not as glowing as they had hoped.
“Our results this quarter did not meet our expectations, reflecting a more subdued demand environment and near-term challenges in parts of our business both wholesale and retail,” said Gildan President and CEO Glenn Chamandy, who is also a member of the Counselor Power 50 list of most influential people in promo. “The demand recovery we had anticipated has not materialized as expected, but our confidence in the underlying strength of the business and the long-term growth opportunity has not changed. We continued to make meaningful progress on the integration of HanesBrands and advance our synergy initiatives.”
It’s been an interesting year for Gildan. The company ended 2025 with its acquisition of HanesBrands, and started 2026 by reporting nearly 11% sales growth for 2025. As retail sales rose, wholesale revenue dipped as a result of the HanesBrands integration. Beginning in June, though, controversy found its way to the Canadian company, after short seller Jehoshaphat Research accused Gildan of inflating sales through channel stuffing. In October, the company amended its agreement with Counselor Top 40 supplier S&S (asi/84358) to comply with FTC pricing regulations after the agency launched an investigation into potential price discrimination.
Also in October, Gildan announced the completion of the sale of HanesBrands Australia.
“In the current environment, our priorities remain clear: Stay focused on what we can control, including leveraging the scale of our brands, our manufacturing network and our commercial capabilities; strengthen the foundations of our combined platform; and continue to invest strategically in innovation and growth,” Chamandy said. “Gildan continues to generate strong free cash flow and remains committed to disciplined capital allocation, including returning capital in a way that maximizes long-term value for shareholders.”
Gildan ranks third on Counselor’s most recent list of largest suppliers in the industry based on 2025 estimated North American promotional products revenue of $901.6 million. As of Nov. 6, Gildan Activewear Inc. (NYSE: GIL) shares were selling at $35.32.
