Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsBrandon Cheatham - Vice President of Equity ResearchChester Ward - President, Sales, Marketing and DistributionChris Li - Managing Director of Equity ResearchGlenn Chamandy - President and CEOIan Liu - Equity Research AssociateJessy Hayem - Senior Vice President, Head of Investor Relations and Global CommunicationsLuca Barile - EVP and CFOStephen MacLeod - Managing Director of Equity ResearchConference Call ...

Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsBrandon Cheatham - Vice President of Equity ResearchChester Ward - President, Sales, Marketing and DistributionChris Li - Managing Director of Equity ResearchGlenn Chamandy - President and CEOIan Liu - Equity Research AssociateJessy Hayem - Senior Vice President, Head of Investor Relations and Global CommunicationsLuca Barile - EVP and CFOStephen MacLeod - Managing Director of Equity ResearchConference Call ...

Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker10Ladies and gentlemen, thank you for standing by, and welcome to Gildan Activewear's 2025 Q4 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jessy Hayem, the Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.Speaker7Thank you, Sarah. Good morning, everyone, and thank you for joining us. Earli ...

Core Insights - Gildan Activewear Inc. reported record revenue of $3,619 million for 2025, marking an 11% increase year-over-year, driven by the acquisition of HanesBrands and strong performance in both Activewear and Innerwear categories [2][9] - The company expects to achieve approximately $250 million in annual run-rate cost synergies from the HanesBrands acquisition by the end of 2028, with $100 million anticipated in 2026 [2][19] - Gildan initiated annual guidance for 2026, projecting revenues from continuing operations to be between $6.0 billion and $6.2 billion, representing a year-over-year increase of approximately 65% to 70% [3][28] Financial Performance - In Q4 2025, net sales from continuing operations reached $1,078 million, a 31.3% increase compared to the previous year, including a one-month contribution from HanesBrands [3][41] - The adjusted operating margin for Q4 was 20.7%, while the GAAP diluted EPS from continuing operations was $0.32, down 62.8% year-over-year, but adjusted diluted EPS increased by 15.7% to $0.96 [3][8] - For the full year 2025, gross profit was $1,130 million, with a gross margin of 31.2%, reflecting a 50 basis point improvement year-over-year [10][41] Acquisition and Integration - The acquisition of HanesBrands was completed on December 1, 2025, significantly expanding Gildan's scale and brand portfolio [2][3] - The integration of HanesBrands is progressing ahead of plan, with various initiatives already activated to capture synergies [18][19] - The HanesBrands Australian business has been classified as held for sale, with a formal sale process initiated [16][17] Strategic Outlook - Gildan plans to construct a second textile facility in Bangladesh, expected to start production in late 2027, to enhance its cost leadership in ring spun and innerwear [20] - The company aims to optimize its operational footprint by closing two textile manufacturing facilities in early 2026, reallocating production volumes to strengthen its cost advantage [24] - Gildan's 2026 guidance includes an expected adjusted diluted EPS of $4.20 to $4.40, reflecting a 20% to 25% increase year-over-year [28]

Core Viewpoint - Gildan Activewear Inc. (GIL) is expected to report revenue growth of 7.8% year-over-year, with a consensus estimate of $885.3 million for Q4 2025, and earnings per share estimated at 94 cents, reflecting a 13.3% increase from the previous year [1]. Group 1: Financial Performance Expectations - The consensus estimate for Gildan's revenues is $885.3 million, indicating a rise of 7.8% from the year-ago figure [1]. - The consensus estimate for earnings is 94 cents per share, which indicates a 13.3% increase from the year-ago quarter's actual [1]. - Gildan has a trailing four-quarter average earnings surprise of 2.6%, with a 2% earnings surprise in the last reported quarter [2]. Group 2: Factors Influencing Q4 Results - Gildan's results are expected to benefit from its Sustainable Growth Strategy, which includes expanding capacity, driving innovation, and advancing ESG initiatives [3]. - The company has completed the acquisition of HanesBrands, contributing to increased market share through brand strength, product innovation, and enhanced customer service [4]. - The Activewear segment is gaining momentum due to market share expansion and strong demand, which is likely to positively impact the upcoming quarter's performance [4]. Group 3: Challenges and Market Conditions - The company faces challenges from a tough operating landscape, including inflationary pressures and softness in the hosiery and underwear category [5]. - Higher operating expenses are expected to have somewhat dampened profitability in the quarter under review [5]. Group 4: Valuation and Stock Performance - Gildan has a forward 12-month price-to-earnings ratio of 15.72x, which is below the industry's average of 16.41x and below its five-year high of 21.94x [7]. - Gildan shares have gained 31.2% in the past six months, significantly outperforming the industry's growth of 0.1% [7].

Company Overview - Gildan Activewear Inc. is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, socks, and intimates to a diverse customer base including wholesale distributors, screenprinters, retailers, and global lifestyle brand companies [4] - The company markets its products across North America, Europe, Asia Pacific, and Latin America under a diversified portfolio of brands including Gildan, Hanes, Comfort Colors, and Champion, among others [4] Manufacturing and ESG Practices - Gildan operates vertically integrated, large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Asia [5] - The company is committed to industry-leading labor, environmental, and governance practices throughout its supply chain, in line with its comprehensive ESG program embedded in its long-term business strategy [5] Upcoming Financial Results - Gildan will report its 2025 fourth quarter and full year results on February 26, 2026, with a press release issued before market opening [1] - A conference call to discuss the results will take place on the same day at 8:30 AM ET, featuring key executives including the President and CEO, Chief Commercial Officer, and Chief Financial Officer [2]

Core Viewpoint - Gildan Activewear Inc. is considered one of the most undervalued Canadian stocks, with multiple analysts raising their price targets in anticipation of positive developments related to the Hanesbrands integration strategy and overall market positioning [1][2][3]. Group 1: Analyst Ratings and Price Targets - Scotiabank increased its price target for Gildan Activewear to $72 from $66 while maintaining an Outperform rating, reflecting confidence in the company's positioning within the apparel industry [1]. - TD Securities analyst raised the price target for Gildan Activewear to $77 from $74 with a Buy rating, emphasizing the importance of the Hanesbrands integration strategy for investor confidence [2]. - BMO Capital raised its price target for Gildan Activewear to $78 from $70 with an Outperform rating, highlighting the company's low-cost, vertically integrated manufacturing model as a driver for wholesale growth and market share capture [3]. Group 2: Company Overview - Gildan Activewear Inc. manufactures and sells a variety of apparel products, including activewear and hosiery under several brands such as Gildan, GoldToe, and All Pro [4].

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The service aims to identify deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, which are available at a discount [1] - It also seeks wide moat stocks, which are high-quality businesses with sustainable competitive advantages, often referred to as "Magic Formula" stocks [1] - Monthly updates and watch lists are provided to keep investors informed about potential investment opportunities [1] Group 2: Market Focus - The primary focus is on the Asian equity market, with a particular emphasis on stocks listed in Hong Kong [1] - The analyst has over a decade of experience in both buy and sell sides of the market, enhancing the credibility of the insights provided [1]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The investment strategy involves seeking deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - The strategy also includes identifying wide moat stocks, which are high-quality businesses with sustainable competitive advantages [1] Group 2: Research Service - The research service, Asia Value & Moat Stocks, provides value investors with ideas and watch lists that are updated monthly [1] - The service is led by an analyst with over a decade of experience in Asian equity markets, specializing in both buy and sell sides [1]

Company Overview - Gildan Activewear (GIL) is a notable stock within the Consumer Discretionary sector, which consists of 261 individual stocks [2] - Gildan Activewear currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Over the past three months, the Zacks Consensus Estimate for Gildan's full-year earnings has increased by 18.8%, reflecting improved analyst sentiment [4] - Year-to-date, Gildan Activewear has returned approximately 2.8%, outperforming the average return of 2.5% for the Consumer Discretionary sector [4] - In the Textile - Apparel industry, which includes 22 companies, Gildan is performing better than the industry average, as this group has seen a decline of about 14.2% this year [6] Industry Context - The Consumer Discretionary sector is ranked 10 in the Zacks Sector Rank, which evaluates 16 different sector groups [2] - Gildan Activewear's performance is contrasted with Acushnet (GOLF), another outperforming stock in the Consumer Discretionary sector, which has increased by 5.9% year-to-date [5] - Acushnet belongs to the Leisure and Recreation Products industry, currently ranked 110, which has seen a slight increase of 0.4% since the beginning of the year [7]