The Montreal-based manufacturer reports its strongest quarterly top-line performance, with the HanesBrands acquisition already reshaping its cost structure — and its competitive ambitions — faster than initially planned.
Gildan Activewear delivered record revenue and adjusted earnings per share (EPS) in the fourth quarter of fiscal 2025, with the newly acquired HanesBrands business adding momentum in its first month under Canadian ownership.
Net sales from continuing operations reached $1.08 billion (€1.02bn) in the three months to Dec. 28, 2025, up 31.3 percent year-on-year. Stripping out HanesBrands’ $217 million (€205m) contribution — the company only owned Hanes for the final 28 days of the quarter — organic growth came to 4.9 percent. For the full year, net sales rose 10.7 percent to $3.62 billion (€3.42bn), a company record.
Adjusted diluted EPS from continuing operations — Gildan’s preferred profitability yardstick, which strips out acquisition costs and restructuring charges — climbed 15.7 percent in the quarter to $0.96 (€0.91), and 17.0 percent for the full year to $3.51 (€3.32).
| Gildan Activewear – Consolidated Financial Data (12 months, $m) | |||
|---|---|---|---|
| Fiscal year ended Dec. 28, 2025 vs Dec. 29, 2024 | Source: Gildan Activewear press release, Feb. 26, 2026 | |||
| FY2025 ($m) | FY2024 ($m) | Change (%) | |
| Net sales | 3,619.2 | 3,270.6 | +10.7% |
| Gross profit | 1,129.9 | 1,003.7 | +12.6% |
| Adjusted gross profit | 1,165.3 | 1,003.7 | +16.1% |
| SG&A expenses | 389.4 | 390.8 | -0.4% |
| Adjusted SG&A expenses | 386.6 | 308.1 | +25.5% |
| Restructuring & acquisition-related costs (recoveries) | 120.6 | -5.3 | -2375.5% |
| Operating income | 619.9 | 618.2 | +0.3% |
| Adjusted operating income | 778.7 | 695.6 | +11.9% |
| Adjusted EBITDA | 926.3 | 833.8 | +11.1% |
| Financial expenses, net | 148.7 | 104.2 | +42.7% |
| Income tax expense | 77.3 | 113.2 | -31.7% |
| Adjusted income tax expense | 100.7 | 101.8 | -1.1% |
| Net earnings – continuing operations | 393.9 | 400.9 | -1.7% |
| Net earnings – discontinued operations | 4.9 | 0.0 | n.m. |
| Total net earnings | 398.9 | 400.9 | -0.5% |
| Adjusted net earnings from continuing operations | 538.0 | 489.7 | +9.9% |
Integration moves faster than planned
Gildan completed its acquisition of HanesBrands Inc. on Dec. 1, 2025, creating what the company describes as a global basic apparel leader with an enlarged portfolio spanning Hanes, Comfort Colors, American Apparel, Champion (under license), Bali, Playtex and Maidenform, among other brands.
The deal has pushed Gildan’s net debt to $4.42 billion (€4.18bn). Integration has moved faster than projected. The company has already closed two HanesBrands textile manufacturing facilities in early 2026, shifting production volumes to Gildan’s lower-cost vertically integrated network across Central America, the Caribbean and Asia.
The company has deliberately run down inventory levels across its combined customer channels in the near term. That temporary inventory reduction will weigh on first-quarter 2026 net sales, guided at approximately $1.15 billion (€1.09bn), and compress the adjusted operating margin to around 12.9 percent in Q1 — before a recovery in subsequent quarters as consolidation benefits flow through.
| Gildan Activewear – Net Sales by Product Group (12 months, $m) | |||
|---|---|---|---|
| Fiscal year ended Dec. 28, 2025 vs Dec. 29, 2024 | Source: Gildan Activewear press release, Feb. 26, 2026 | |||
| FY2025 ($m) | FY2024 ($m) | Change (%) | |
| Activewear | 3,088.0 | 2,831.1 | +9.1% |
| Innerwear (incl. hosiery, underwear, intimates & other) | 531.2 | 439.5 | +20.9% |
Australia sale underway; Bangladesh expansion confirmed
Gildan has started a formal sale process for the HanesBrands Australian business, which has been reclassified as a discontinued operation. At the same time, Gildan confirmed plans to build a second textile facility at its Bangladesh complex — Phase 2 — with initial production targeted for the latter part of 2027. The Bangladesh site is central to Gildan’s ring-spun and innerwear cost strategy, and the expansion has been described as critical to supporting projected sales growth in 2027 and beyond.
| Gildan Activewear – Net Sales by Geography (12 months, $m) | |||
|---|---|---|---|
| Fiscal year ended Dec. 28, 2025 vs Dec. 29, 2024 | Source: Gildan Activewear press release, Feb. 26, 2026 | |||
| FY2025 ($m) | FY2024 ($m) | Change (%) | |
| United States | 3,254.2 | 2,911.0 | +11.8% |
| Canada | 125.0 | 107.6 | +16.2% |
| International | 240.0 | 252.0 | -4.8% |
| Total | 3,619.2 | 3,270.6 | +10.7% |
2026 guidance: revenues to nearly double
For fiscal 2026 — the first full year to include HanesBrands — Gildan expects revenues from continuing operations of $6.0–6.2 billion (€5.7–5.9bn), up roughly 65–70 percent year-on-year.
The guidance incorporates the anticipated positive impact of a Feb. 20, 2026 U.S. Supreme Court decision invalidating certain tariffs, though Gildan noted that the broader trade environment “remains uncertain and difficult to predict.” Higher tariff costs already embedded in existing inventory will continue to flow through cost of sales in the current period.
Leadership and reporting changes
On Feb. 25, 2026, Deepak Khandelwal joined the board as an independent director, bringing the total to nine members. Chuck Ward, former EVP and COO, was named EVP and Chief Commercial Officer, overseeing Retail and Wholesale channel strategy. From Q1 2026, Gildan will report revenue by Retail/Wholesale instead of Activewear/Innerwear.
