Gildan Activewear Inc. has reported record financial results for the second quarter of 2025, citing continued momentum from its Gildan Sustainable Growth (GSG) strategy and reaffirming its full-year outlook despite global economic uncertainties.

Net sales for the quarter reached an all-time high of $919 million, up 6.5% year-on-year, driven primarily by a 12% increase in Activewear sales. Gildan also posted an operating margin of 21.7% and a record adjusted diluted EPS of $0.97, up 31.1% from the previous year. Free cash flow reached $154 million, while $145 million was returned to shareholders through dividends and share repurchases.

President and CEO Glenn J. Chamandy credited the results to the company’s low-cost vertically integrated business model and its strategic focus on operational agility. “As we navigate through a fluid environment, we are focusing on what we can control, which is allowing us to strengthen our competitive position and drive profitable top line growth,” said Chamandy.

Gildan’s second-quarter gross profit rose to $289 million with margins improving by 110 basis points to 31.5%, owing to reduced manufacturing and raw material costs. SG&A expenses were notably lower than last year, aided by fewer one-time costs related to leadership changes and proxy contests. On an adjusted basis, SG&A rose 21% reflecting higher administrative costs and variable compensation.

Despite a 14.1% decline in international sales and a 23.3% drop in Hosiery and Underwear sales, Gildan’s strong performance in North American markets and new product innovation - such as its Soft Cotton Technology - bolstered results.

Year-to-date net sales totalled $1.63 billion, up 4.6% over the first half of 2024. Activewear accounted for $1.47 billion of that, representing a 10.6% increase, although international softness persisted. The company reported a year-to-date adjusted diluted EPS of $1.56 and operating income of $329 million, reflecting improved margins and sales.

Looking ahead, Gildan has reaffirmed its 2025 full-year guidance, forecasting mid-single-digit revenue growth and narrowing its adjusted diluted EPS guidance to a range of $3.40 to $3.56. It anticipates more than $450 million in free cash flow and expects capital expenditure to remain at approximately 5% of sales.

Environmental, Social and Governance efforts also continue to earn recognition. Gildan was recently listed among Canada’s Best 50 Corporate Citizens by Corporate Knights and is one of only two Canadian companies named in TIME’s World’s Most Sustainable Companies list under the apparel, footwear and sporting goods category.

The company has declared a quarterly cash dividend of $0.226 per share, payable on 15 September 2025, and confirmed continued share repurchases under its NCIB, having already bought back nearly 8% of its public float.

With a strong balance sheet, ongoing innovation and disciplined execution, Gildan appears poised to meet its growth and sustainability ambitions through the remainder of 2025.

www.gildan.com