EarningsQ2 2026 Earnings Report
MX:GILN Q2 2026 EPS Results
Actual EPS$23.25
Consensus EPS$20.32
Beat/MissBeat by +$2.92
One Year Ago EPS$17.62
MX:GILN Q2 2026 Revenue Results
Actual Revenue$27.92B
Expected Revenue$29.25B
Beat/MissMissed by -$1.33B
YoY Revenue Growth+72.47%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:GILN Upcoming Earnings
Gildan Activewear's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:GILN Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly constructive picture: management delivered strong pro forma results driven by the HanesBrands acquisition, meaningful synergy realization (~$100M implemented), upgraded guidance (higher adjusted operating margin and EPS) and a raised full‑year free cash flow target (~$1B). The company also secured substantial tariff refunds (~$220M) and a planned HAA divestiture to accelerate deleveraging. Offsetting these positives are near‑term impacts from proactive reduced sell‑in (lower volumes vs pro forma), retail softness and cautious retailer inventory builds, one‑time acquisition accounting costs and higher leverage/interest expense. Management articulated clear remediation (synergy capture, working capital targets <30%, reinvestment of nonrecurring refunds to drive future growth) and a path to resume buybacks once leverage improves.Company Guidance
Strong Revenue Growth Driven by Acquisition
Net sales from continuing operations were $1.58 billion in Q2, up 72.3% year‑over‑year, primarily reflecting the HanesBrands acquisition and consistent with guidance (~$1.6B).
Adjusted EPS Increased Significantly
Adjusted diluted earnings per share from continuing operations were $1.28 in Q2, up 32% versus the prior year ($0.97), with full‑year adjusted EPS guidance raised to $4.65–$4.75 (≈32.5%–35% YoY growth).
Synergy Capture and Integration Progress
Approximately $100 million of cost synergies implemented in 2026 with the company on track to capture another $100 million in 2027; management expects approximately $250 million of annual run‑rate cost synergies over the next 3 years (2026–2028).
Tariff Refunds and Structural Tariff Benefit
Company expects approximately $220 million of IEEPA tariff refunds in 2026 (≈$25M recorded in Q2). About half represents a recurring structural benefit (CAFTA‑DR origin tariff relief) that is reflected in guidance; the remainder will be reinvested into growth initiatives.
Adjusted Gross Profit and Margin Improvement (Pro Forma Adjustments)
Adjusted gross profit (excluding an $86M inventory fair value step‑up) was $545 million or 34.5% of net sales versus 31.5% prior year — a 300 basis‑point improvement driven by HanesBrands contribution, lower raw material costs and pricing initiatives.
Brand & Wholesale Momentum
Wholesale fundamentals remain healthy with share gains in key categories; Comfort Colors, American Apparel and Champion each delivered double‑digit sales growth in Q2 and the company continued to outperform a down market.
Updated 2026 Guidance and Margin Outlook
Full‑year revenue expected at the low end of $6.0–$6.2 billion; adjusted operating margin raised to ~21.8% (from ~20%) and Q3 adjusted operating margin guided to ~26%, reflecting tariff refunds, realized synergies and Barbados subsidy.
Free Cash Flow Target Raised
Second‑quarter free cash flow was ~$326 million; H1 generated ~$17 million after capex. Full‑year free cash flow guidance increased to approximately $1.0 billion (prior: >$850M), supported by working capital focus and tariff refunds net of reinvestment.
HAA Divestiture to Accelerate Deleverage
Entered a definitive agreement to sell HanesBrands Australia (HAA) for ~AUD 700M (~USD 490M) (subject to adjustments), expected to close in H2 2026 and be used to pay down debt, accelerating return to target leverage and resumption of buybacks.
MX:GILN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed