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Gildan Activewear
(TSX:GIL)
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Rating:56Neutral
Price Target:
C$57.00
▼(-24.50% Downside)
Action:Reiterated
Date:08/19/26
Overall score reflects a balance of improving growth and cash-flow outlook (including upgraded guidance and synergy progress) against meaningful profitability compression and higher leverage in the financials. Technicals are broadly neutral, while valuation is a key drag due to the very high P/E with only modest dividend support.
Positive Factors
Vertical Integration
Vertical integration gives Gildan control over fabric and garment production, input costs, capacity utilization, quality, and lead times. That operating structure can support durable cost advantages and dependable service across high-volume wholesale and retail channels over the coming quarters.
Negative Factors
Elevated Leverage
Leverage remains above management’s targeted range, increasing interest expense and limiting flexibility while integration continues. The planned asset sale and cash generation may reduce debt, but until that occurs, elevated borrowings can constrain capital allocation and amplify pressure if operating results weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical Integration
Vertical integration gives Gildan control over fabric and garment production, input costs, capacity utilization, quality, and lead times. That operating structure can support durable cost advantages and dependable service across high-volume wholesale and retail channels over the coming quarters.
Read all positive factors
Gildan Activewear (GIL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.52B
Dividend Yield2.37%
Average Volume (3M)770.47K
Price to Earnings (P/E)75.3
Beta (1Y)1.32
Revenue Growth40.42%
EPS Growth-83.20%
CountryCA
Employees75,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.55
Shares Outstanding185,191,850
10 Day Avg. Volume790,594
30 Day Avg. Volume770,473
Financial Highlights & Ratios
PEG Ratio3.05
Price to Book (P/B)2.69
Price to Sales (P/S)2.60
P/FCF Ratio20.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$87.61Price Target Upside16.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)4.58
Revenue Forecast (FY)C$5.95B
Gildan Activewear Business Overview & Revenue Model
Company Description
Gildan Activewear Inc. operates as a global producer and seller of a diverse range of clothing items, with a market presence spanning the United States, North America, Europe, Asia-Pacific, and Latin America. The company's activewear segment featu...
How the Company Makes Money
Gildan makes money primarily by selling high-volume, standardized apparel basics at scale through a cost-focused, vertically integrated model. Its core revenue stream is the sale of activewear and related products to (1) the printwear channel—whol...
Gildan Activewear Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
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.Positive Updates
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).
Negative Updates
Proactive Inventory Reduction Reduced Volumes
Pro forma continuing operations net sales were $1.72 billion versus actual $1.58 billion; the shortfall primarily reflects lower volumes from a proactive reduced sell‑in strategy implemented during integration, temporarily reducing near‑term sell‑in.
Read all updates
Q2-2026 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
Gildan updated 2026 guidance expecting full‑year revenue at the low end of the prior $6.0–$6.2B range, an adjusted operating margin of ~21.8% (vs ~20% prior guidance), adjusted diluted EPS of $4.65–$4.75 (up ~32.5%–35% YoY), capex of ~3% of sales and free cash flow of about $1.0B (vs prior >$850M). The outlook assumes ~ $220M of IEEPA tariff refunds in 2026 (≈$25M recorded in Q2), roughly half (~$110M) treated as nonrecurring and reinvested in retail marketing, promotions and product/packaging innovation while the other half is a recurring CAFTA‑DR structural benefit; Q3 guidance is net sales ≈$1.65B, adjusted operating margin ≈26% and an adjusted effective tax rate of ~18.5%. Management reiterated at least $250M of annual run‑rate synergies over 2026–28 (including ~$100M implemented in 2026 and another ~$100M targeted for 2027), noted net debt of ≈$4.69B with leverage ~3.2x pro forma adj. EBITDA, and said proceeds from the planned HAA sale (AUD700M / ≈USD490M) will be used to accelerate debt paydown toward the 1.5–2.5x midpoint before resuming buybacks.Gildan Activewear Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.68B | 3.68B | 3.27B | 3.20B | 3.24B | 2.92B |
| Gross Profit | 1.30B | 1.11B | 1.00B | 880.05M | 992.41M | 940.21M |
| EBITDA | 912.09M | 887.67M | 737.74M | 743.03M | 720.12M | 777.69M |
| Net Income | 62.42M | 405.86M | 400.87M | 533.58M | 541.54M | 607.18M |
Balance Sheet | ||||||
| Total Assets | 10.04B | 10.45B | 3.72B | 3.51B | 3.44B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 267.87M | 283.94M | 155.58M | 134.78M | 198.69M | 249.24M |
| Total Debt | 4.85B | 4.63B | 1.65B | 1.08B | 1.02B | 723.18M |
| Total Liabilities | 6.71B | 6.89B | 2.26B | 1.56B | 1.56B | 1.22B |
| Stockholders Equity | 3.34B | 3.56B | 1.46B | 1.96B | 1.88B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 496.83M | 477.24M | 351.04M | 338.60M | 168.93M | 487.29M |
| Operating Cash Flow | 595.58M | 585.54M | 501.39M | 546.61M | 413.49M | 617.51M |
| Investing Cash Flow | -252.34M | -240.13M | -112.12M | -154.86M | -182.40M | -187.83M |
| Financing Cash Flow | -149.79M | -148.78M | -379.35M | -452.78M | -258.27M | -754.75M |
Gildan Activewear Technical Analysis
Negative
75.50
Price Trends
64.42
Negative
70.11
Negative
77.04
Negative
Market Momentum
-2.15
Negative
37.30
Neutral
24.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIL, the sentiment is Negative. The current price of 75.5 is above the 20-day moving average (MA) of 58.00, above the 50-day MA of 64.42, and below the 200-day MA of 77.04, indicating a bearish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GIL.
Gildan Activewear Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$16.55B | 20.93 | 14.41% | 1.41% | 5.44% | 4.67% | |
77 Outperform | C$16.55B | 20.93 | 14.41% | 1.43% | 5.44% | 4.67% | |
76 Outperform | C$17.76B | 30.40 | 42.25% | ― | 40.28% | 108.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | C$160.32M | 232.39 | 0.59% | ― | 3.94% | ― | |
56 Neutral | C$10.52B | 75.30 | 2.13% | 2.37% | 40.42% | -83.20% | |
54 Neutral | C$1.07B | 19.00 | 10.37% | ― | 12.26% | 20.96% |
* Consumer Cyclical Sector Average
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Gildan Activewear
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-31.09%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.