Gildan Activewear Inc. Q1 2026 Financial Report

Gildan Activewear Inc. reported Q1 2026 net sales of $1.17 billion, a 63.8% increase year-over-year, primarily driven by the HanesBrands acquisition. Wholesale sales decreased by 11.9% due to proactive inventory reduction and the non-recurrence of preemptive buying ahead of tariffs, while retail sales significantly increased to $614 million from $85 million, largely due to the HanesBrands acquisition. The company reported a Q1 2026 operating loss of $1.3 million, compared to an operating income of $129.6 million in the prior year. Adjusted operating income, however, increased by 23.1% to $166.8 million. The gross margin was impacted by an inventory fair value step-up charge of $106 million related to the HanesBrands acquisition. SG&A expenses rose significantly due to the acquisition, and restructuring and acquisition-related costs amounted to $61 million, primarily related to Hanes integration. The company also noted an increase in financial expenses due to higher borrowing levels for the acquisition.