Gildan Q2 Earnings Beat, Raises 2026 Guidance, Sells HanesBrands Australia for ~$490M
GIL is trading near its 52-week low of $46 (13% above the low).
Summary
Gildan reported Q2 adjusted EPS of $1.28, raised full-year 2026 adjusted EPS guidance to $4.65–$4.75, and announced the sale of HanesBrands Australia for ~$490M to reduce debt. The results and outlook counter recent short-seller allegations and demonstrate strong integration progress.
Key Events · Earnings and Guidance · GIL
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Q2 Earnings Beat
Adjusted EPS came in at $1.28, up from $0.97 a year ago, on net sales of $1.58B (up 72.3%). The adjusted operating margin reached 22.3%, 260 bps ahead of guidance.
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Raised Full-Year 2026 Guidance
Adjusted EPS is now seen at $4.65–$4.75 (up 32.5–35% YoY), with an adjusted operating margin of ~21.8% and free cash flow of ~$1.0B. Revenue is expected at the low end of the $6.0B–$6.2B range.
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Sale of HanesBrands Australia for ~$490M
The divestiture of HAA carries an enterprise value of ~A$700M (~US$490M). Proceeds will be used to pay down debt, accelerating the return to the target leverage range of 1.5x–2.5x net debt/EBITDA.
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Tariff Refund Windfall
Approximately $220M in IEEPA tariff refunds is expected in 2026, mostly in Q3. A significant portion is non-recurring and will be reinvested in growth initiatives; the rest represents a structural benefit from CAFTA-DR.
Analysis · GIL · Manufacturing
A strong Q2 saw adjusted EPS reach $1.28, comfortably ahead of expectations, and full-year adjusted EPS guidance was lifted to $4.65–$4.75 — a 32.5–35% increase year-over-year. The company also announced the sale of its HanesBrands Australia business for approximately A$700 million (~US$490 million), with proceeds earmarked to pay down debt and accelerate a return to its target leverage range. These moves come against a backdrop of an activist short-seller report in June that sent shares down 18%, making this earnings beat and strategic divestiture a powerful rebuttal. The updated guidance reflects structural tariff benefits and integration synergies, signaling that the HanesBrands acquisition is delivering value faster than anticipated.
At the time of this filing, GIL was trading at $52.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $46.00 to $73.70. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.