Gildan’s headline revenue missed forecasts, but the wholesale channel supplying distributors and decorators outperformed a soft market. Champion, Comfort Colors and ALLPRO gained momentum, while tariff refunds and CAFTA-DR sourcing advantages strengthened margins and funded new investment in the Champion brand.

Gildan Activewear’s second-quarter results suggest the most sporting goods-relevant part of its business remains resilient: the wholesale and printwear channel serving distributors, screenprinters and embellishers. Adjusted diluted earnings per share from continuing operations reached $1.28, up 32 percent year over year and ahead of the $1.12 analyst consensus, while revenue of $1.58 billion narrowly missed forecasts.

Gildan Activewear — Condensed Income Statement
Q2, three months ended June 28 (US$ millions)*
  Q2 2026 Q2 2025 Change
Net sales 1,582.5 918.5 72.3%
Gross profit 459.8 289.4 58.9%
SG&A expenses 193.8 81.7 –
Restructuring & acquisition-related costs 90.0 8.1 –
Operating income 175.9 199.5 -11.8%
Financial expenses, net 69.3 32.0 –
Earnings before income taxes 106.6 167.5 -36.4%
Income tax expense 16.2 29.6 -45.3%
Net earnings from continuing operations 90.4 137.9 -34.4%
Loss from discontinued operations, net of tax -140.4 – –
Net earnings (loss) -50.0 137.9 –
Adjusted diluted EPS, continuing ops $1.28 $0.97 32.0%

Source: Gildan Activewear Inc. Q2 2026 Shareholder Report (MD&A), filed July 29, 2026. *All figures shown in US dollars as reported (Gildan’s functional/reporting currency).

Wholesale remains the bright spot

Wholesale sales slipped 1.5 percent to $769 million, but the decline reflected Gildan’s planned inventory reduction during the HanesBrands integration rather than weaker demand. Management said the channel outperformed a market that was down low single digits.

Gildan Activewear — Net Sales by Channel
Three and six months ended June 28 (US$ millions)*
  Q2 2026 Q2 2025 H1 2026 H1 2025
Wholesale 769.4 781.4 1,321.4 1,407.8
Retail 813.1 137.1 1,427.0 222.4
Total net sales 1,582.5 918.5 2,748.4 1,630.2

Source: Gildan Activewear Inc. Q2 2026 Shareholder Report (MD&A), filed July 29, 2026. *All figures shown in US dollars as reported. Wholesale comprises distributors, screenprinters, embellishers and global lifestyle brand customers; Retail comprises mass merchants, department stores, national chains, specialty retailers, online retailers and direct-to-consumer. Prior-period figures recast to conform to current presentation following the Hanes acquisition.

Champion, Comfort Colors and ALLPRO gain momentum

Growth was driven by continued double-digit gains at Champion, Comfort Colors and American Apparel, alongside market-share gains in ring-spun and fleece categories that remain central to teamwear, event merchandising and promotional apparel. Gildan also highlighted growing traction for ALLPRO, its performance-apparel platform launched last year.

The performance of these brands suggests Gildan continues to deepen its position in the blank-apparel ecosystem that supplies sporting goods retailers, decorators and distributors.

Tariffs strengthen Gildan’s sourcing advantage

Adjusted operating margin reached 22.3 percent in the quarter, helped by approximately $25 million in IEEPA tariff refunds and integration-related support. Gildan now expects around $220 million in tariff refunds during 2026.

More importantly, management views part of that benefit as structural. Apparel qualifying under CAFTA-DR is exempt from the replacement Section 122 tariff, reinforcing the competitiveness of Gildan’s vertically integrated manufacturing network in Central America and the Caribbean. Production sourced from Bangladesh and Vietnam remains exposed to additional US trade measures, widening the cost gap versus many Asian-focused competitors.

Champion relaunch gets funding boost

Gildan plans to reinvest part of the tariff benefit into Champion, funding brand marketing, product innovation and retail activation ahead of a broader retail relaunch scheduled for spring 2027. The company said the campaign is expected to generate around 1 billion impressions and reach approximately 120 million US consumers.

For sporting goods retailers, the investment signals that Champion remains a major growth priority following Gildan’s acquisition of the brand’s printwear rights and subsequent expansion efforts.

Gildan Activewear — Net Sales by Geography
Three and six months ended June 28 (US$ millions)*
  Q2 2026 Q2 2025 H1 2026 H1 2025
United States 1,438.6 825.6 2,507.7 1,458.1
Canada 42.9 32.0 67.8 60.0
International 101.0 60.9 172.9 112.1
Total net sales 1,582.5 918.5 2,748.4 1,630.2

Source: Gildan Activewear Inc. Q2 2026 Shareholder Report (MD&A), filed July 29, 2026. *All figures shown in US dollars as reported.

Outlook upgraded

Looking ahead, Gildan raised its full-year 2026 adjusted diluted EPS outlook to $4.65-$4.75, up from $4.20-$4.40, while increasing its adjusted operating margin target to approximately 21.8 percent from 20 percent. Free cash flow guidance was increased to around $1 billion. The company also maintained its target of low-20 percent annual EPS growth through 2028.

Sustainability credentials gain further recognition

Gildan also highlighted its sustainability credentials, having been named to Corporate Knights’ 2026 Best 50 Corporate Citizens in Canada list for a fifth consecutive year. The company was also included in TIME’s World’s Most Sustainable Companies 2026 ranking, where it was one of only two Canadian companies recognized in the Apparel, Footwear & Sporting Goods category.

The recognition underscores Gildan’s efforts to differentiate itself with retailers and sourcing partners as sustainability, transparency and supply chain accountability become increasingly important considerations in procurement decisions.

Key takeaway

For the sporting goods industry, the quarter was less about headline revenue and more about the continued strength of Champion, ALLPRO and the wholesale channel, supported by a sourcing model that is increasingly benefiting from shifts in US trade policy.

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