Download PDF

1. Company Snapshot

1.a. Company Description

Gildan Activewear Inc.manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America.It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Comfort Colors, American Apparel, Alstyle, and GoldToe brands.


The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks, as well as sheer pantyhose, tights, and leggings under the Gildan, Under Armour, GoldToe, PowerSox, Signature Gold by Goldtoe, Peds, MediPeds, Therapy Plus, All Pro, Secret, Silks, Secret Silky, and American Apparel brands.In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands; and ladies' shapewear, intimates, and accessories under the Secret and Secret Silky brands.The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies.


The company was formerly known as Textiles Gildan Inc.and changed its name to Gildan Activewear Inc.in March 1995.


Gildan Activewear Inc.was founded in 1946 and is headquartered in Montreal, Canada.

Show Full description

1.b. Last Insights on GIL

Gildan Activewear's recent performance was driven by strong Q2 earnings, with record sales of $919 million, up 6.5% year-over-year, and adjusted diluted EPS of $0.97. The company's robust quarter was characterized by steady execution, product innovation, and manufacturing expansion. Additionally, Gildan granted S&S Activewear exclusive distribution rights in Canada and the US, boosting brand reach. UBS reiterated its buy rating, raising the price target to $70.00. The company also announced a $1.2 billion senior unsecured notes offering to fund its Hanesbrands acquisition.

1.c. Company Highlights

2. Gildan Activewear's Strong Q3 Earnings Driven by Sustainable Growth Strategy

Gildan Activewear reported a robust financial performance in Q3 2025, with record adjusted diluted EPS of $1.39, beating estimates of $1.28, and a 17.6% increase from last year. The company's adjusted operating margins stood at 23.2%, while net sales growth was 2.2% year-over-year, driven by a 5.4% increase in Activewear sales. Gross margin improved 250 basis points to 33.7%, driven by lower manufacturing costs and favorable pricing.

Publication Date: Nov -03

📋 Highlights
  • Strong EPS & Margin Growth: Achieved record adjusted diluted EPS of $1 (17.6% YoY) and adjusted operating margins of 23.2%.
  • Activewear Segment Expansion: Activewear sales rose 5.4% YoY, driving 75% of growth from new programs, including a major retailer’s fleece initiative.
  • Acquisition Synergies: HanesBrands acquisition expected to generate $200M+ annual synergies and 3-5% CAGR sales growth post-2026 closure.
  • Manufacturing & Cost Efficiency: Gross margin improved 250 bps to 33.7% via lower manufacturing costs and pricing, with Bangladesh capacity expanding 50%.
  • Free Cash Flow & Guidance: Revised 2025 free cash flow to $400M, targeting mid-single-digit revenue growth and 70 bps margin expansion despite tariff pressures.

Segment Performance

The hosiery and underwear category saw a 22% decline in sales, attributed to a timing shift of shipments and unfavorable mix due to broader market weakness. International sales were down 6.1% year-over-year, reflecting ongoing demand softness. However, the company's sales in the distributor channel remain healthy, and it's seeing sustained momentum in national account customers.

Guidance Update and Acquisition

Gildan is updating its 2025 guidance, expecting revenue growth of mid-single digits, adjusted operating margin increase of 70 basis points, and adjusted diluted EPS in the range of $3.45 to $3.51. The company's free cash flow guidance is revised to approximately $400 million, reflecting higher working capital investments and transaction costs related to the proposed HanesBrands acquisition. The acquisition is expected to close late this year or early 2026, with the company anticipating at least $200 million in run-rate synergies.

Valuation Metrics

With a P/E Ratio of 18.55 and an EV/EBITDA of 12.37, the market is pricing in a certain level of growth for Gildan Activewear. The company's ROE stands at 32.81%, indicating strong profitability. The updated guidance and acquisition expectations may drive growth in 2026, with analysts estimating revenue growth at 100.5%.

Market Trends and Competitive Positioning

Gildan sees a stable market, with POS flat to last year, and expects to see a return to growth in the innerwear business in Q4. The company's Comfort Colors brand continues to perform well, and it's capitalizing on growth opportunities in key product categories. Fleece sales are meeting expectations, despite warmer weather in September, and the season is just starting.

Growth Drivers and Innovation

Gildan is expanding into new categories, including hats, bags, and outerwear, to reach 40% of the market they haven't historically played in. They're investing in innovation, particularly in polyester fibers and imprintability, to benefit from these new categories. The company feels good about addressing the imprintables market and playing in new areas, driven by its strong brand portfolio, soft cotton technology, and product innovation.

3. NewsRoom

Card image cap

Will SNA's Operational Agility, RCI Plan & Innovations Fuel Growth?

Dec -04

Source: zacks.com

Card image cap

Gildin's HanesBrands Integration in Focus as Major Holder Sells 137,548 Shares

Dec -04

Source:

Card image cap

How Will Gildan's Scale Change After HanesBrands' Acquisition?

Dec -02

Source:

Card image cap

Gildan Completes the Acquisition of HanesBrands

Dec -01

Source:

Card image cap

This Fund Sold $49.5 Million of Gildan as the Apparel Maker Pursues $2.2 Billion HanesBrands Merger

Nov -29

Source:

Card image cap

How Recent Developments Are Shaping the Story Behind Hanesbrands’s Valuation and Growth Outlook

Nov -26

Source:

Card image cap

Is Amer Sports, Inc. (AS) Outperforming Other Consumer Discretionary Stocks This Year?

Nov -25

Source:

Card image cap

Sandisk Set to Join S&P 500; Upwork, First Interstate BancSystem, PTC Therapeutics to Join S&P SmallCap 600

Nov -24

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Apparel

Expected Growth: 8.0%

The growth is driven by increasing demand for casual and comfortable clothing, the rise of athleisure wear, and Gildan's strong brand presence in the market.

7. Detailed Products

Gildan Branded Apparel

Gildan Activewear Inc. offers a wide range of branded apparel products, including t-shirts, fleece, and sport shirts, under its own brand name.

Printwear Apparel

Gildan provides a variety of printwear apparel products, including t-shirts, tank tops, and hoodies, designed for screen printing, embroidery, and other decoration techniques.

Alstyle Apparel

Alstyle is a fashion-forward apparel brand offering trendy, high-quality t-shirts, tank tops, and other fashion basics.

American Apparel

American Apparel is a fashion brand offering trendy, high-quality apparel products, including t-shirts, tank tops, and fashion basics.

Private Label Apparel

Gildan offers private label apparel services, allowing customers to create their own branded apparel products.

8. Gildan Activewear Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Gildan Activewear Inc. faces moderate threat from substitutes, as customers have limited alternatives for apparel products. However, the rise of fast fashion and online shopping platforms has increased the availability of substitutes, posing a moderate threat to the company.

Bargaining Power Of Customers

Gildan Activewear Inc. faces high bargaining power from customers, as they have numerous options for apparel products and can easily switch to competitors. Additionally, the rise of e-commerce has increased price transparency, further empowering customers.

Bargaining Power Of Suppliers

Gildan Activewear Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

Gildan Activewear Inc. operates in a highly competitive industry, but the threat of new entrants is low due to high barriers to entry, including significant capital requirements and established distribution networks.

Intensity Of Rivalry

Gildan Activewear Inc. operates in a highly competitive industry, with numerous players vying for market share. The company faces intense rivalry from established players, as well as new entrants, which can lead to pricing pressures and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.62%
Debt Cost 5.58%
Equity Weight 64.38%
Equity Cost 12.10%
WACC 9.78%
Leverage 55.33%

11. Quality Control: Gildan Activewear Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Gildan Activewear

A-Score: 5.8/10

Value: 3.4

Growth: 6.0

Quality: 5.8

Yield: 4.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Ralph Lauren

A-Score: 5.6/10

Value: 2.6

Growth: 6.1

Quality: 6.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Kontoor Brands

A-Score: 5.1/10

Value: 3.9

Growth: 4.0

Quality: 5.8

Yield: 7.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Columbia Sportswear

A-Score: 4.6/10

Value: 5.6

Growth: 5.6

Quality: 6.2

Yield: 3.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Albany International

A-Score: 4.1/10

Value: 4.4

Growth: 4.9

Quality: 4.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
PVH

A-Score: 4.0/10

Value: 7.3

Growth: 4.3

Quality: 5.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.35$

Current Price

81.35$

Potential

-0.00%

Expected Cash-Flows