Q1 2026 Gildan Activewear Inc Earnings Call Transcript
Key Points
- Gildan Activewear Inc (GIL) reported record Q1 sales from continuing operations of nearly $1.2 billion, up 64% year-over-year, primarily due to the Hanes brand acquisition.
- The company is progressing well with integration initiatives and expects to achieve approximately $250 million in run rate cost synergies over the next three years, including $100 million in 2026.
- Gildan Activewear Inc (GIL) is enhancing its distribution network and standardizing IT systems, key supply chain, and manufacturing processes, which remain on track.
- The company has good visibility into input costs for 2026, including cotton, polyester, and energy, despite the inflationary environment.
- Gildan Activewear Inc (GIL) is maintaining its guidance for 2026 and remains confident in achieving its three-year objectives for the 2026-2028 period.
- Adjusted diluted earnings per share from continuing operations decreased to $0.43 from $0.59 in the prior year, reflecting the short-term impact of integration initiatives.
- The year-over-year decline in net sales was primarily driven by lower volumes stemming from proactive inventory reduction across customer channels.
- Gross profit margin decreased to 23.9% from 31.2% in the same period last year, although adjusted gross profit margin improved slightly.
- SG&A expenses increased significantly to $219 million from $87 million in the prior year, reflecting the acquisition of Hanes Brands.
- Net financial expenses rose to $67 million, up $37 million year-over-year, primarily due to higher borrowing levels related to the Hanes Brands acquisition.
Ladies and gentlemen, thank you for standing by, and welcome to Gildan Activewear's 2026 Q1 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, Angela. Good morning, everyone, and thank you for joining us this morning. Earlier today, we issued a press release announcing our results for the first quarter while maintaining our guidance for 2026, as well as our three-year objectives for the 2026-28 period.
The company's management discussion and analysis and consolidated financial statements are expected to be filed with the Canadian Securities and Regulatory Authorities and the US Securities and Exchange Commission today, and will also be available on our corporate website.
As a reminder, please note that we'll be holding our
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