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Gildan Activewear (TSE:GIL)
TSX:GIL
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Gildan Activewear (GIL) AI Stock Analysis

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TSE:GIL

Gildan Activewear

(TSX:GIL)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
C$97.00
▲(15.39% Upside)
Gildan Activewear's overall stock score is driven by strong earnings performance and positive technical indicators. The company's strategic initiatives, including the proposed acquisition of HanesBrands, support future growth prospects. However, the valuation is moderate, and increasing leverage poses a potential risk.
Positive Factors
Strong Cash Flow Generation
Strong cash flow generation indicates robust financial health, allowing Gildan to reinvest in growth opportunities and manage debt effectively.
Strategic Expansion
The acquisition of HanesBrands is expected to enhance Gildan's market reach and operational capabilities, supporting long-term growth and competitive positioning.
Innovation and Brand Expansion
Expanding brand portfolio through innovation helps Gildan capture new market segments and drive sustained revenue growth.
Negative Factors
Rising Debt Levels
Increased leverage could strain financial flexibility and cash flow, posing a risk to long-term stability if not managed properly.
Decline in Hosiery and International Sales
Declining sales in key categories and regions may indicate challenges in market demand and competitive pressures, impacting revenue growth.
Higher SG&A and Financial Expenses
Rising expenses can erode profit margins and reduce operational efficiency, potentially affecting long-term profitability.

Gildan Activewear (GIL) vs. iShares MSCI Canada ETF (EWC)

Gildan Activewear Business Overview & Revenue Model

Company DescriptionGildan 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.
How the Company Makes MoneyGildan generates revenue primarily through the sale of its products in the printwear and branded apparel sectors. The printwear segment targets screen printers and distributors, providing them with high-volume, customizable clothing options, while the branded apparel segment focuses on retail sales under various brand names. Key revenue streams include direct sales to wholesale customers, retail partnerships, and online sales. Additionally, Gildan's focus on innovation and sustainability has led to partnerships with major retailers, enhancing its market reach and driving sales growth. The company also benefits from economies of scale, allowing it to maintain competitive pricing and optimize its profit margins.

Gildan Activewear Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
Gildan Activewear delivered strong financial results in Q3 2025, driven by record EPS, robust Activewear sales, and gross margin improvements. However, the company faced challenges with declining hosiery and international sales, as well as increased SG&A and financial expenses. The strategic focus on innovation and the proposed acquisition of HanesBrands are positive indicators for future growth.
Q3-2025 Updates
Positive Updates
Record Adjusted Diluted EPS
Gildan Activewear reported a record adjusted diluted EPS of $1 in Q3 2025, marking a 17.6% increase from the same period last year.
Strong Activewear Sales Growth
Activewear sales grew by 5.4% driven by favorable product mix and higher net prices.
Gross Margin Improvement
The company achieved a gross margin of 33.7%, a 250 basis point improvement year-over-year.
Strategic Expansion and Innovation
The introduction of new brands such as ALLPRO and Champion and the expansion of the Comfort Colors brand are driving growth.
Proposed HanesBrands Acquisition
Plans to integrate HanesBrands, with expected synergies of at least $200 million, leveraging Gildan's manufacturing network.
Negative Updates
Decline in Hosiery and Underwear Sales
Sales in the hosiery and underwear category were down 22% versus last year due to a timing shift of shipments and broader market weakness.
International Sales Decline
International sales were down by $4 million or 6.1% year-over-year, reflecting ongoing demand softness.
Higher SG&A Expenses
SG&A expenses rose to $95 million from $84 million last year, due to higher variable compensation and IT-related expenses.
Increased Net Financial Expenses
Net financial expenses rose by $13 million due to fees related to the HanesBrands acquisition and higher borrowing levels.
Company Guidance
In the earnings call for Gildan Activewear's 2025 Q3, the company provided updated guidance for the full fiscal year, highlighting several key metrics. Gildan reported a 5.4% increase in Activewear sales and achieved record adjusted operating margins of 23.2%. The company also delivered a record adjusted diluted EPS of $1, marking a 17.6% increase compared to the same period last year. Looking ahead, Gildan has narrowed its adjusted diluted EPS guidance to a range of $3.45 to $3.51 and anticipates a full-year adjusted operating margin increase of approximately 70 basis points. Capital expenditures (CapEx) are expected to be around 4% of sales, down from previous estimates of 5%, with free cash flow projections revised to approximately $400 million. Gildan continues to focus on operational agility and its sustainable growth strategy, with plans to integrate the proposed acquisition of HanesBrands, aiming for run rate synergies of at least $200 million.

Gildan Activewear Financial Statement Overview

Summary
Gildan Activewear shows strong profitability with solid margins and a healthy net profit margin of 12.4%. The balance sheet is stable with a manageable debt-to-equity ratio, though leverage is slightly high. Cash flow remains solid despite recent declines, with a strong conversion of net income to cash.
Income Statement
78
Positive
Gildan Activewear has demonstrated solid revenue growth and improved profitability over the years. The TTM gross profit margin stands at 30.9%, reflecting strong control over cost of goods sold. The net profit margin for TTM is 12.4%, indicating a healthy bottom line. Revenue growth from 2024 to TTM shows an increase of 0.5%, which is modest but positive. EBIT and EBITDA margins are robust at 19.5% and 23.2%, respectively, highlighting efficient operations. Overall, the company displays significant profitability and stability, although revenue growth is relatively flat.
Balance Sheet
70
Positive
The balance sheet indicates a moderate level of leverage with a debt-to-equity ratio of 1.36 for TTM, which is manageable but slightly on the higher side. The equity ratio is 35.9%, suggesting reasonable financial stability but with room for improvement. The return on equity (ROE) is a solid 28.9% in TTM, showcasing effective use of shareholder funds to generate profits. Overall, the company maintains a stable financial position but should monitor its leverage.
Cash Flow
75
Positive
Gildan Activewear's cash flow position is strong, with a TTM free cash flow of $256.9 million. The free cash flow growth rate from 2024 to TTM is -26.8%, indicating a decline, primarily due to reduced operating cash flow and increased capital expenditure. However, the operating cash flow to net income ratio is 0.95, suggesting nearly all net income is converted into cash, which is a positive indicator of cash flow health. The free cash flow to net income ratio at 0.63 shows a decent conversion of net income to free cash flow. Overall, cash flow remains solid despite recent declines.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.34B3.27B3.20B3.24B2.92B1.98B
Gross Profit1.04B1.00B880.05M992.41M940.21M249.06M
EBITDA788.76M737.74M743.03M720.12M777.69M-48.51M
Net Income486.37M400.87M533.58M541.54M607.18M-225.28M
Balance Sheet
Total Assets4.00B3.72B3.51B3.44B3.14B3.02B
Cash, Cash Equivalents and Short-Term Investments169.22M98.80M134.78M198.69M249.24M505.26M
Total Debt1.98B1.65B1.08B1.02B709.10M1.08B
Total Liabilities2.58B2.26B1.56B1.56B1.22B1.46B
Stockholders Equity1.42B1.46B1.96B1.88B1.92B1.56B
Cash Flow
Free Cash Flow308.22M351.04M338.60M168.93M487.29M356.69M
Operating Cash Flow434.70M501.39M546.61M413.49M617.51M415.03M
Investing Cash Flow-89.53M-112.12M-154.86M-182.40M-187.83M-57.51M
Financing Cash Flow-349.54M-379.35M-452.78M-258.27M-754.75M83.54M

Gildan Activewear Technical Analysis

Technical Analysis Sentiment
Positive
Last Price84.06
Price Trends
50DMA
79.75
Positive
100DMA
74.35
Positive
200DMA
70.69
Positive
Market Momentum
MACD
1.44
Positive
RSI
55.82
Neutral
STOCH
61.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIL, the sentiment is Positive. The current price of 84.06 is below the 20-day moving average (MA) of 84.53, above the 50-day MA of 79.75, and above the 200-day MA of 70.69, indicating a neutral trend. The MACD of 1.44 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GIL.

Gildan Activewear Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
C$11.30B39.4626.49%26.51%172.52%
$12.53B19.4829.70%1.48%7.09%32.92%
C$2.54B13.2710.45%7.37%3.19%-0.26%
C$13.37B17.1815.20%1.62%7.90%19.55%
$1.90B40.3111.35%2.45%-17.73%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$6.57B38.70%0.95%-13.78%-115.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GIL
Gildan Activewear
84.06
17.11
25.55%
TSE:DOO
BRP
89.90
22.14
32.67%
TSE:CCL.A
CCL Industries (A)
78.64
-2.27
-2.81%
TSE:WPK
Winpak
43.40
-2.87
-6.20%
TSE:GOOS
Canada Goose Holdings
19.39
5.69
41.53%
TSE:ATZ
Aritzia
98.04
53.21
118.69%

Gildan Activewear Corporate Events

Gildan Activewear Reports Record Q3 Revenue and EPS
Oct 30, 2025

Gildan Activewear Inc., a leading player in the apparel industry, specializes in manufacturing and selling activewear, hosiery, and underwear, leveraging a vertically integrated business model to maintain cost efficiency.

Gildan Activewear Q3 2025 Earnings Call Highlights
Oct 30, 2025

Gildan Activewear’s Q3 2025 earnings call revealed a generally positive sentiment, underscored by strong financial performance. The company reported record earnings per share (EPS), robust Activewear sales, and significant improvements in gross margin. Despite these achievements, challenges were noted in declining hosiery and international sales, alongside increased selling, general, and administrative (SG&A) and financial expenses. The company’s strategic focus on innovation and the proposed acquisition of HanesBrands were highlighted as promising drivers for future growth.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Gildan Activewear Reports Record Q3 Revenue and Announces HanesBrands Merger
Positive
Oct 29, 2025

Gildan Activewear reported record third-quarter revenue of $911 million and adjusted diluted EPS of $1.00, driven by strong sales growth in activewear and effective execution of its Gildan Sustainable Growth strategy. The company announced a proposed combination with HanesBrands, expected to close by early 2026, which aims to enhance its capabilities and market reach, potentially impacting its operations and industry positioning.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$95.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Announces Indenture Agreement for Debt Securities Issuance
Oct 7, 2025

On October 7, 2025, Gildan Activewear Inc. entered into an indenture agreement with U.S. Bank Trust Company, National Association, as Trustee, to issue debt securities in an unlimited principal amount. This strategic move is expected to enhance Gildan’s financial flexibility and strengthen its position in the apparel industry by providing additional capital resources for growth and operational initiatives.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$73.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Gildan Activewear Prices $1.2 Billion Notes for Hanesbrands Acquisition
Positive
Sep 24, 2025

Gildan Activewear Inc. has announced the pricing of a private offering of $1.2 billion in senior unsecured notes, divided into two series with maturities in 2030 and 2035. The proceeds from this offering are intended to finance the acquisition of Hanesbrands Inc., refinance Hanesbrands’ existing debt, and cover related transaction costs. This strategic move is expected to enhance Gildan’s market position by expanding its product portfolio and operational capabilities, potentially impacting stakeholders by increasing the company’s financial leverage and market reach.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Announces Acquisition of HanesBrands
Aug 20, 2025

On August 13, 2025, Gildan Activewear Inc. announced a definitive merger agreement to acquire HanesBrands Inc. The transaction involves a series of mergers and conversions, ultimately making HanesBrands a wholly owned subsidiary of Gildan. The agreement outlines the conversion of HanesBrands’ stock and equity awards into Gildan shares and cash, with specific conditions to be met for the transaction’s completion. If successful, HanesBrands’ stock will be delisted from the NYSE, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$90.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear to Acquire HanesBrands, Forming Global Apparel Leader
Aug 13, 2025

On August 13, 2025, Gildan Activewear Inc. announced a definitive merger agreement to acquire HanesBrands Inc., creating a global leader in basic apparel. The transaction, valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value, is expected to double Gildan’s revenues and enhance its market positioning. The merger aims to realize $200 million in annual cost synergies within three years and is anticipated to be immediately accretive to Gildan’s adjusted diluted EPS. The combined entity will benefit from expanded scale, enhanced product diversification, and strengthened go-to-market capabilities, with HanesBrands shareholders owning approximately 19.9% of Gildan shares. The merger has been unanimously approved by both companies’ boards and awaits HanesBrands shareholder approval and regulatory clearances.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$64.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Shines in Earnings Call
Aug 2, 2025

Gildan Activewear’s recent earnings call conveyed a generally positive sentiment, highlighting significant achievements in sales growth, earnings per share (EPS), and market share expansion. Despite facing some challenges in international markets and specific product categories, the company’s robust financial performance and strategic initiatives indicate confidence in sustained growth.

Gildan Activewear Reports Record Revenue and EPS
Aug 1, 2025

Gildan Activewear Inc., a leading manufacturer in the apparel industry, is known for its vertically integrated business model and commitment to sustainability. The company recently reported record second-quarter revenue and adjusted diluted EPS, with net sales reaching $919 million, a 6.5% increase from the previous year. Key financial highlights include an operating margin of 21.7% and a record adjusted diluted EPS of $0.97. The company’s Activewear segment showed strong growth, while international sales and the Hosiery and Underwear category faced declines. Gildan’s gross profit improved due to lower raw material costs and favorable pricing, although SG&A expenses increased due to higher administrative costs. Looking ahead, Gildan reaffirms its full-year guidance for 2025, focusing on operational agility and leveraging its competitive positioning to navigate a dynamic market environment.

Business Operations and StrategyFinancial Disclosures
Gildan Activewear Reports Record Q2 Revenue and Reaffirms 2025 Guidance
Positive
Jul 31, 2025

Gildan Activewear Inc. reported record second-quarter revenue of $919 million, a 6.5% increase from the previous year, driven by a 12% growth in activewear sales. The company also achieved a record adjusted diluted EPS of $0.97 and generated $188 million in cash flow from operations. Despite a decrease in international sales and challenges in the hosiery and underwear categories, Gildan’s strong market positioning and new product innovations contributed to its performance. The company reaffirmed its full-year 2025 guidance, emphasizing its focus on controlling what it can amidst a fluid operating environment.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025