Gildan Lowers 2026 Guidance as Q3 Sales Reach $1.47 Billion and HanesBrands Australia Sale Closes

Gildan Activewear reported third-quarter 2026 net sales from continuing operations of $1.47 billion, up 61.1% year over year, and cut its full-year 2026 revenue guidance to $5.4–5.5 billion from a prior $6.0–6.2 billion. The Montreal-based apparel maker announced the results and the revised outlook on November 5, 2026, according to GlobeNewswire.

Gildan's Q3 Results and Lowered Guidance

Gildan makes branded and private-label apparel, including T-shirts and fleece, and has been integrating HanesBrands since acquiring it. Adjusted diluted EPS from continuing operations was $1.54, up 54.0% from $1.00 a year earlier, and the adjusted operating margin was 27.0%. Wholesale sales fell 6.8% to $735 million, while retail sales reached $732 million, reflecting the HanesBrands acquisition.

Gildan now expects full-year adjusted diluted EPS of $3.70–$3.80, down from $4.65–$4.75, and free cash flow of $700–$750 million, down from about $1.0 billion. The company also withdrew its previously communicated 2026–2028 targets and said it expects to update long-term guidance at an investor day planned for spring 2027.

"This quarter, our results did not meet our expectations, reflecting a more moderate demand environment and near-term challenges in certain areas of our business, including Wholesale and Retail," said Glenn J. Chamandy, Gildan's president and chief executive officer.

HanesBrands Australia Sale Closes

Gildan completed the sale of HanesBrands Australia to BBFIT Investments Pte Ltd on October 26, 2026, for an enterprise value of about A$700 million (about $490 million), paid in cash at closing. Gildan said it used the net proceeds to repay outstanding debt. Stock Titan reported the completion of the sale.

Gildan's Deal History and Synergy Targets

Gildan divested Hanesbrands Japan to ITOCHU Corporation and Inglewood in June 2026, according to akta.pro company records. The same records show Gildan reported record Q1 2026 revenue of $1.17 billion, up 63.8% year over year, driven by HanesBrands consolidation. Gildan said it remains on track to deliver about $100 million of synergies in 2026 and expects annualized cost synergies of about $250 million by the end of 2028.

Earlier Gildan Developments

In September 2026, B2B Marketplace reported that Gildan was shifting focus to manufacturing and cost benefits from the HanesBrands acquisition, consolidating production and reallocating volumes, with a target of about $300 million in annual run-rate cost synergies by end-2028. In August 2026, Robbins LLP filed a securities class action on behalf of former HanesBrands shareholders who received Gildan securities in the December 2025 cash-and-stock acquisition, according to Aijourn.

What Comes Next for Gildan

Gildan said production at its second Bangladesh facility (phase 2) is expected to begin in 2028. The company plans to hold an investor day in spring 2027 to update its long-term outlook.