Shares of Gildan Activewear Inc. (NYSE:GIL) reacted to first-quarter results released Thursday that came in ahead of analyst expectations, while the company maintained its guidance for the full year.
The group reported adjusted earnings per share of $0.43, beating the consensus estimate of $0.39 by $0.04.
Revenue reached a record $1.17 billion, surpassing the $1.15 billion forecast and rising sharply from $711.7 million in the same period last year.
The significant increase in revenue was largely driven by the acquisition of HanesBrands, which was completed in the fourth quarter of 2025. This marks the first full reporting period in which HanesBrands’ results are fully included in Gildan’s financials.
On a GAAP basis, the company reported a diluted loss per share from continuing operations of -$0.30, compared with earnings of $0.56 a year earlier. The decline was mainly due to a $106.3 million inventory fair value step-up charge related to the HanesBrands deal.
“We are pleased with our first quarter performance, reflecting disciplined execution across the organization and continued progress against our strategic priorities,” said President and CEO Glenn J. Chamandy.
“While the external environment remains uncertain, we are focused on what we can control — driving operational excellence, advancing our integration of HanesBrands, maintaining cost discipline and consistent execution.”
Adjusted operating margin came in at 14.3%, ahead of the company’s guidance of around 12.9%, although it declined by 470 basis points year-over-year.
The drop reflects the higher SG&A cost structure historically associated with HanesBrands compared with Gildan’s core operations. Wholesale revenue totaled $552 million, down 11.9% from a year earlier, while retail sales surged to $614 million from $85 million, primarily due to the acquisition.
For full-year 2026, Gildan reiterated its outlook, expecting revenue in the range of $6.0 billion to $6.2 billion, broadly in line with the $6.14 billion consensus. The midpoint of $6.1 billion aligns closely with analyst expectations.
The company also reaffirmed its adjusted EPS guidance of $4.20 to $4.40, with the midpoint of $4.30 slightly below the $4.31 consensus estimate.
Looking ahead to the second quarter, Gildan expects revenue of approximately $1.6 billion and an adjusted operating margin of about 19.7%.
The company remains on track to deliver around $100 million in synergies in 2026 and continues to target roughly $250 million in annual cost synergies over the next three years from the integration of HanesBrands.