Overview

* Gildan Q2 2025 net sales rise 6.5%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 2025 beats consensus, reflecting strong operational performance

* Company reaffirms full-year 2025 guidance, narrows adjusted EPS range

Outlook

* Gildan reaffirms full-year 2025 guidance, narrows adj EPS to $3.40-$3.56

* Company expects 2025 revenue growth up mid-single digits

* Full-year adjusted operating margin to rise by ~50 basis points

* Capex to be approximately 5% of sales in 2025

* Free cash flow to exceed $450 mln in 2025

* Q3 net sales to rise low single digits year over year

* Q3 adjusted operating margin to match Q2 2025 level

Result Drivers

* ACTIVEWEAR GROWTH - Activewear sales rose 12% driven by higher volumes, favorable product mix, and higher net prices

* INTERNATIONAL SALES DECLINE - International sales fell 14.1% due to demand softness in certain markets

* GROSS MARGIN IMPROVEMENT - Gross margin improved by 110 basis points due to lower raw material and manufacturing costs and favorable pricing

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $918.50 $907.10

mln mln (5

Analysts

)

Q2 Beat $0.97 $0.95 (7

Adjusted Analysts

EPS )

Q2 EPS $0.91

Q2 $145.90

Adjusted mln

Net

Income

Q2 $246.30

Adjusted mln

EBITDA

Q2 $208.70

Adjusted mln

EBIT

Q2 $289.40

Adjusted mln

Gross

Profit

Q2 Basic $0.91

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

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

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(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.)