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View the full Nov 7, 2026 version

Price: CA$55.40 → CA$51.01(−7.9%)
Next earnings: Nov 5, 2026 → Feb 5, 2027
Next earnings is estimate: No → Yes
About: Gildan Activewear makes basic clothing such as T-shirts, fleece, underwear, socks and intimates. It owns most of its factories, from yarn spinning to sewing, mainly in Central America, the Caribbean and Bangladesh, and this gives it low costs. Its brands include Gildan, Comfort Colors, American Apparel, Hanes, Bali, Maidenform, Playtex and GOLDTOE. Gildan bought HanesBrands on December 1, 2025, with cash, new shares and new debt. It reports two kinds of sales. Wholesale sales go to distributors, screenprinters and global lifestyle brands, and these customers print logos and designs on blank clothing. Retail sales go to mass merchants, department stores, online retailers and consumers, mostly the Hanes brands. In removed: Q2 added: Q3 2026, Wholesale was removed: $769 added: $735 million and Retail was removed: $813 added: $732 million of net sales.
Thesis: The market doubts that Gildan's sales are as strong as they look. On June 16, 2026, the short seller Jehoshaphat Research alleged that Gildan sold too much stock into its distributors to make revenue grow, and that it moved almost half of its receivables off the balance sheet. The stock fell 18.8% that day. Gildan said its disclosure is accurate and kept its guidance. Two more facts add to the doubt. Net sales in the first half of 2026 were lower than the pro forma sales of Gildan and HanesBrands a year earlier, because Gildan cut inventory at its customers during the integration. Debt is also high after the HanesBrands purchase, at removed: 3.2 added: 2.7 times pro forma adjusted EBITDA on removed: June 28, 2026, so buybacks are paused. For the gap to close, three things must be true. added: September 27, 2026. Q3 2026 added: then confirmed part of the doubt: net sales removed: must be near the added: were $1.47 billion, against guidance of about $1.65 billion, removed: with added: and both Wholesale and Retail removed: both growing added: fell against pro forma removed: sales, as management said; this is a direct test of the channel stuffing claim. Full-year added: sales. Gildan blames weaker consumer demand and supply problems in Retail. It cut its 2026 added: guidance to revenue removed: must be at least at the low end of removed: $6.0 added: $5.4 billion to removed: $6.2 billion, with about $1.0 added: $5.5 billion added: and adjusted EPS of removed: free cash flow. The HanesBrands Australia sale added: $3.70 to $3.80, and it withdrew its 2026 to 2028 targets. For the gap to close, three things must removed: close added: be true. Sales must stop falling against pro forma sales in removed: the second half of 2026, added: Q4 2026 and added: early 2027, which shows that demand, not channel stock, is the added: cause. Free cash added: flow must removed: reduce debt added: reach $700 million to $750 million in 2026, so that removed: the added: Gildan can buy back shares under its new buyback program and still bring leverage removed: ratio moves toward added: back within the 1.5 to 2.5 times removed: target. added: target by the end of 2027, as it plans. The removed: Q3 added: HanesBrands integration must deliver about $100 million of cost savings in 2026 removed: report on November 5, 2026, gives the first evidence, and added: about $250 million a year by the added: end of 2028. The full-year 2026 report in about February 2027 removed: gives added: and the removed: second. added: new long-term outlook at an investor day in spring 2027 are the next tests. If sales removed: hold, added: stabilize, the gap can close over the next removed: two to four added: to six quarters. If sales removed: fall in added: keep falling, the removed: second half, as the short seller predicted, the doubt about the sales quality can stay for longer.
Risks: A short seller alleged in June 2026 that Gildan pushed too much stock into its distribution channel and that it sells almost half of its receivables to move them off the balance sheet. Gildan rejects the claims. removed: If second-half added: Q3 2026 sales removed: fall short, added: were well below guidance, so the market can believe the removed: claims, added: claims more, and law firms look for shareholders for possible securities claims. Retail customers buy carefully. In removed: Q2 added: Q3 2026, Retail sales were added: 7.0% lower than pro forma sales a year earlier, because of removed: weak markets at the end of the quarter added: weaker demand and removed: smaller seasonal orders from some large retailers. added: problems with product availability and service. HanesBrands' Retail business now gives about half of net sales, so a weak US consumer has a larger effect than before. Debt is high after the HanesBrands purchase. Net debt was removed: $4.69 added: $4.14 billion on removed: June 28, added: September 27, 2026, removed: 3.2 added: 2.7 times pro forma adjusted EBITDA, against a target of 1.5 to 2.5 times. removed: Buybacks stay paused until added: Gildan restarted buybacks and says that leverage removed: is near added: can stay above the removed: middle of added: target for a time, with a return within it by the removed: target. The plan to reduce debt depends on the HanesBrands Australia sale and on about $1.0 billion added: end of added: 2027. Lower sales and free cash flow removed: in 2026. added: can delay this. The HanesBrands integration must give about $250 million of yearly cost savings over three years. Gildan closes and moves factories and distribution centers, and this can cause supply problems or one-time costs. Most of Gildan's factories are outside the US, in Central America, the Caribbean and Bangladesh. US tariff policy changed many times in 2025 and 2026. A new tariff on these countries, or a change to the CAFTA-DR treatment, can raise costs again.
Balance sheet: Cash: removed: $268M added: $250M Debt: removed: $4.5B added: $4.0B Net debt: removed: $4.3B EBITDA, last 12 months: $1.5B added: $3.7B Net debt / EBITDA: removed: 2.9× added: 2.7× (medium) Debt due within 12 months: removed: $945M added: $391M Last debt due: 2035 Gildan funds itself with unsecured notes, bank term loans, a revolving credit facility and, since May 15, 2026, a US commercial paper program of up to $1.6 billion. The debt went up when Gildan bought HanesBrands on December 1, 2025. Debt is long-term debt including its current removed: portion added: portion, $3,981 million at removed: June 28, added: September 27, 2026, added: down from $4,314 million at December 28, 2025, and it does not include removed: $322 million of leases. The current portion removed: includes $495 added: is $391 million of commercial removed: paper added: paper. Cash and removed: a $300 million term loan that Gildan repaid with cash removed: from operations on June 30, 2026. added: equivalents were $250 million, so debt less cash was $3,731 million. Gildan's own net debt was removed: $4,689 added: $4,135 million at removed: June 28, added: September 27, 2026, because it adds removed: leases, including those of HanesBrands Australia. EBITDA is added: leases. The net debt leverage ratio, on pro forma adjusted EBITDA for the added: trailing 12 months removed: to June 28, 2026, as the company calculates it, removed: and the net debt leverage ratio was removed: 3.2 added: 2.7 times, against a target of 1.5 to 2.5 times. Interest cover on GAAP figures is low in 2026, because operating income includes HanesBrands integration costs and the inventory step-up. removed: Gildan was in compliance with all its debt covenants at June 28, 2026. The $1.6 billion revolving facility runs to March 2031 and removed: was not drawn at June 28, 2026, but it also supports the commercial paper. removed: About $490 million from added: Gildan completed the added: sale of HanesBrands Australia removed: sale must go first added: for about A$700 million on October 26, 2026, and it will use the net proceeds to repay removed: the new term loans. Buybacks stay paused until added: debt. It restarted buybacks in November 2026 and says that leverage removed: is near 2.0 times. added: can stay above the target for a time, with a return within it by the end of 2027. The quarterly dividend removed: was added: is $0.249 per removed: share in Q2 2026. added: share. The term loans are due from December 2027 to August 2029, and the last notes are due in October 2035. As of removed: Jun 28, added: Sep 27, 2026.
Checkpoints: Oct 26, 2026: HanesBrands Australia sale closes and debt falls. Passed. Watch: Closing in the second half of 2026 with the cash used to repay term loans passes; a delay into 2027 or a lower price fails. Outcome: Gildan completed the sale on October 26, 2026, for about A$700 million in cash, and it said that it will use the net proceeds to repay debt. Nov 5, 2026: Q3 2026 results: sales against pro forma and the short seller's claim. removed: Pending. added: Failed. Watch: Net sales near $1.65 billion with Wholesale and Retail both growing against pro forma sales pass; sales well below guidance or another fall against pro forma fails. added: Outcome: Net sales were $1.47 billion, well below guidance, and Wholesale and Retail both fell against pro forma sales. Feb added: 5, 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: Revenue of at least removed: $6.0 added: $5.4 billion, free cash flow removed: near $1.0 billion added: of at least $700 million and removed: leverage added: Q4 sales that removed: moves toward 2.5 times added: stop falling against pro forma sales pass; missed guidance or removed: higher leverage added: another fall against pro forma sales fails.
Recent events: added: Nov 5, 2026: Gildan reported Q3 2026 results. Net sales were $1.47 billion, below its guidance of about $1.65 billion and 9% below pro forma sales of $1.61 billion a year earlier. Wholesale fell 10.8% and Retail fell 7.0% against pro forma sales, because of weaker demand and supply problems in Retail. Adjusted diluted EPS was $1.54, helped by about $177 million of tariff refunds, and free cash flow was $606 million. Gildan cut its 2026 guidance to revenue of $5.4 billion to $5.5 billion, adjusted EPS of $3.70 to $3.80 and free cash flow of $700 million to $750 million. It withdrew its 2026 to 2028 targets and plans a new outlook at an investor day in spring 2027. It renewed its buyback program for up to 5% of its shares from November 9, 2026. Oct 26, 2026: Gildan completed the sale of HanesBrands Australia to BBFIT Investments, an entity of BB Retail Capital, for about A$700 million (about $490 million), paid in cash at closing. Gildan said that it will use the net proceeds to repay debt. Oct 8, 2026: The US Federal Trade Commission closed its investigation into Gildan and the distributor S&S under the Robinson-Patman Act. The investigation was about a contract clause that stopped Gildan from giving S&S's competitors the same prices and discounts. Gildan and S&S changed the clause. Gildan paid no penalty, made no settlement and admitted no wrongdoing. Jul 30, 2026: Gildan agreed to sell HanesBrands Australia to BBFIT Investments, an entity of BB Retail Capital, for an enterprise value of about A$700 million (about $490 million). It expects the sale to close in the second half of 2026, after regulatory approvals, and it will use the cash to reduce debt. Jul 30, 2026: Gildan reported Q2 2026 results. Net sales were $1.58 billion, up 72.3% because of HanesBrands, but lower than the pro forma $1.72 billion of a year earlier. Adjusted diluted EPS was $1.28, up 32.0%. Free cash flow was $326 million. Gildan raised its 2026 adjusted EPS guidance to $4.65 to $4.75 from $4.20 to $4.40, but it now expects revenue at the low end of $6.0 billion to $6.2 billion. Jul 30, 2026: Gildan said it expects about $220 million of refunds of IEEPA tariffs in 2026, after the US Supreme Court ruled against these tariffs on February 20, 2026. It recorded about $25 million in Q2 and expects most of the rest in Q3. Tariffs no longer apply to clothing that qualifies under the CAFTA-DR trade agreement, and this gives a lasting cost benefit. Jun 16, 2026: The short seller Jehoshaphat Research alleged that Gildan pushed too much stock into its distribution channel to make revenue grow. Gildan said its disclosure is accurate and kept its 2026 guidance. The stock fell 18.8% that day, to $50.35 on the NYSE. Law firms later started to look for shareholders for possible securities claims. Apr 30, 2026: Gildan reported Q1 2026 results, the first full quarter with HanesBrands. Net sales were $1.17 billion, up 63.8%, but lower than the pro forma $1.29 billion of a year earlier, because Gildan reduced inventory at its customers. Adjusted diluted EPS was $0.43. Gildan kept its 2026 guidance.