Gildan Activewear Inc reported a strong performance in the first quarter of fiscal 2026, supported by the integration of HanesBrands and continued execution of its strategic priorities.
Net sales from continuing operations rose 63.8% year-on-year to $1.17 billion, largely driven by the consolidation of HanesBrands. The company reaffirmed its full-year outlook, projecting revenue of $6–6.2 billion, an adjusted operating margin of around 20%, and adjusted earnings per share between $4.2 and $4.4.
Adjusted operating margin reached 14.3%, exceeding guidance, while adjusted gross margin improved to 33% due to pricing actions and lower input costs. However, overall profitability was impacted by acquisition-related and restructuring expenses, with GAAP operating margin slightly negative.
Retail sales surged to $614 million, offsetting an 11.9% decline in wholesale revenue to $552 million, which was affected by inventory adjustments and the absence of prior tariff-driven demand.
Despite external uncertainties such as geopolitical risks and tariff volatility, Gildan remains focused on operational efficiency, cost discipline, and synergy capture from the integration process. The company expects second-quarter sales of approximately $1.6 billion, with margins set to improve as integration benefits continue to materialize.
