Q3 2025 Gildan Activewear Inc Earnings Call Transcript
Key Points
- Gildan Activewear Inc (GIL) reported a strong net sales growth of 5.4% in Activewear, contributing to record adjusted diluted EPS of $1, a 17.6% increase from the previous year.
- The company achieved a gross margin of 33.7%, a 250 basis point improvement year-over-year, primarily due to lower manufacturing costs and favorable pricing.
- Gildan Activewear Inc (GIL) is capitalizing on its largest innovation pipeline in history, introducing new brand offerings such as All Pro and Champion, and expanding the Comfort Colors brand.
- The company is planning the integration of the proposed acquisition of HanesBrands, which is expected to drive meaningful synergies of at least $200 million.
- Gildan Activewear Inc (GIL) has a strong competitive positioning, with sustained momentum in national account customers and solid sales to North American distributors.
- Sales in the Hosiery and Underwear category were down 22% year-over-year, reflecting a timing shift of shipments and broader market weakness.
- International market sales declined by $4 million or 6.1% year-over-year, primarily due to ongoing demand softness across markets.
- Net financial expenses increased by $13 million over the prior year, mainly due to fees related to the committed financing for the proposed HanesBrands acquisition.
- Operating cash flow decreased to $270 million from $291 million last year, primarily due to higher working capital investments.
- The company revised its free cash flow guidance downward to approximately $400 million from above $450 million, reflecting transaction costs and timing of working capital.
Ladies and gentlemen, thank you for standing by, and welcome to Gildan Activewear's 2025 Q3 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, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.
Thank you, Jeannie. Good morning, everyone, and thank you for joining us. Earlier today, we issued a press release announcing our results for the third-quarter, while updating our full year guidance for 2025. We also issued our interim shareholder report containing management's discussion and analysis and consolidated financial statements. These documents are expected to be filed with the Canadian securities and regulatory authorities and the US Securities Commission today, and they'll also be available on our corporate website.
Now, joining me on the call today are Glenn Chamandy, our President and CEO; Luca Barile, Executive Vice
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