Gildan Activewear reported record third quarter revenue and adjusted diluted EPS, alongside tighter full year guidance and an update on its proposed combination with HanesBrands. For the quarter ended 28 September 2025, net sales rose 2.2% to 911 million dollars, with operating margin at 21.1% and a record adjusted operating margin of 23.2%. GAAP diluted EPS was 0.80 dollars and adjusted diluted EPS reached a record 1.00 dollar.

Activewear sales increased 5.4% to 831 million dollars, supported by favourable mix, higher net prices and continued strength with North American distributors and national accounts. Hosiery and underwear revenue declined 22.1% to 80 million dollars, largely due to a timing shift of shipments into the fourth quarter and broader market softness. International sales were 60 million dollars, down 6.1% year on year.

Gross profit rose to 307 million dollars, or 33.7% of sales, a 250-basis-point improvement driven primarily by lower manufacturing costs and price actions taken to mitigate tariffs, with some benefit from lower raw material costs. SG&A was 95 million dollars; on an adjusted basis this represented 10.4% of sales. Operating income was 192 million dollars. Net financial expenses increased to 44 million dollars, reflecting financing for the proposed HanesBrands acquisition and higher borrowing levels, including a private placement of 1.2 billion dollars of senior unsecured notes to fund the transaction and related refinancing.

Year to date, net sales were 2,541 million dollars, up 3.7%. Activewear grew 8.7% to 2,300 million dollars, while hosiery and underwear declined 27.5%, reflecting lower volumes, mix and the exit of the Under Armour business in 2024. International sales were 172 million dollars, down 8.1%. GAAP and adjusted diluted EPS were 2.27 dollars and 2.55 dollars respectively. Operating cash flow totalled 270 million dollars for the first nine months (including 224 million dollars in Q3), with free cash flow of 189 million dollars year to date and 200 million dollars in the quarter. The board declared a quarterly dividend of 0.226 dollars per share, payable on 15 December 2025.

On 13 August 2025, Gildan announced a definitive agreement to acquire HanesBrands, creating a global basic apparel leader. The transaction, unanimously approved by both boards, is expected to close in late 2025 or early 2026, subject to customary approvals.

For 2025, Gildan now expects revenue up mid-single digits; adjusted operating margin up approximately 70 basis points year on year; capital expenditure at around 4% of sales; adjusted diluted EPS in the range of 3.45 to 3.51 dollars; and free cash flow of approximately 400 million dollars. The outlook assumes no significant deterioration in market conditions and incorporates current tariff impacts and transaction costs incurred to date.

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