Overview

* Gildan Q3 net sales of $911 mln, missing analyst expectations

* Adjusted EPS for Q3 beats analyst expectations

* Company announces proposed merger with HanesBrands, closing expected by early 2026

Outlook

* Gildan expects 2025 revenue growth to be up mid-single digits

* Company sees 2025 adjusted diluted EPS between $3.45 and $3.51

* Gildan projects 2025 free cash flow to be approximately $400 mln

Result Drivers

* ACTIVEWEAR SALES - Sales increased 5.4% driven by favorable product mix and higher net prices

* GROSS MARGIN IMPROVEMENT - Gross margin improved by 250 basis points due to lower manufacturing costs and favorable pricing

* HOSIERY AND UNDERWEAR DECLINE - Sales dropped 22.1% due to lower volumes and market weakness

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $910.60 $914.86

mln mln (6

Analysts

)

Q3 Beat $1 $0.97 (8

Adjusted Analysts

EPS )

Q3 EPS $0.80

Q3 $148.80

Adjusted mln

Net

Income

Q3 $248.70

Adjusted mln

EBITDA

Q3 $211.60

Adjusted mln

EBIT

Q3 $306.60

Adjusted mln

Gross

Profit

Q3 Basic $0.81

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories peer group is "buy"

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)