Gildan ActivewearGIL +0.87%88 Gross Margin % is 23.87% as of Mar. 2026, which is 16% below its 10-year median of 28.49. GuruFocus rates GIL with a GF Score™ of 88/100 and a GF Value™ of $63.25 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,028 Manufacturing - Apparel & Accessories companies, Gildan Activewear ranks better than 51.56% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Gildan Activewear had a gross margin of 23.87% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Gildan Activewear Gross Margin % Related Terms
Gildan Activewear Gross Margin % Historical Data
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The historical data trend for Gildan Activewear's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Manufacturing subindustry, Gildan Activewear's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gildan Activewear Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gildan Activewear's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gildan Activewear's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Gildan Activewear (GIL) has a Gross Margin % of 23.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gildan Activewear and its competitors. This is 16% below median its historical median of 28.49. Over the past decade, Gildan Activewear's Gross Margin % has ranged from 12.57 to 32.17. According to the industry distribution chart, Gildan Activewear ranks #498 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 48.4%.
Is Gildan Activewear's Gross Margin % too high?
Gildan Activewear's current Gross Margin % of 23.87% is 16% below median its 10-year median of 28.49. Over the past 10 years, this metric has ranged from a low of 12.57 to a high of 32.17. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.39. Gildan Activewear's value of 23.87% is 15.9% below this industry median. Based on the distribution chart, Gildan Activewear ranks #498 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Gildan Activewear has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gildan Activewear's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Gildan Activewear ranks #498 out of 1028 companies for Gross Margin %. This puts Gildan Activewear in the upper half of its industry. The industry median Gross Margin % is 28.39. Gildan Activewear's value of 23.87% is 15.9% below this benchmark. Historically, Gildan Activewear's own Gross Margin % has ranged from 12.57 to 32.17 over the past decade. While the company's 10-year median is 28.49 vs. the industry median of 28.39, Gildan Activewear has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.39, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gildan Activewear's current Gross Margin % of 23.87% is 15.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Gildan Activewear and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gildan Activewear's current Gross Margin % is 23.87%, which is 16% below median its own 10-year median of 28.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gildan Activewear stock overvalued right now?
Based on GuruFocus' analysis, Gildan Activewear (GIL) is currently considered Modestly Undervalued. The stock's GF Value™ is $63.25, compared to a current price of $54.55 — trading 13.8% below its estimated fair value. The current Gross Margin % is 23.87%, which is 16% below median its 10-year median of 28.49 and 15.9% below the Manufacturing - Apparel & Accessories industry median of 28.39. Gildan Activewear's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Gildan Activewear (GIL), the current Gross Margin % is 23.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gildan Activewear (GIL) Overvalued in 2026?
Based on GuruFocus' analysis, Gildan Activewear stock appears to be undervalued.
The current stock price of $54.55 is trading 13.8% below its estimated GF Value™ of $63.25.
GuruFocus considers Gildan Activewear to be Modestly Undervalued.
Key valuation signals for GIL:
Gross Margin %: 23.87% (16% below median its 10-year median of 28.49)
GF Value™: $63.25 vs. price of $54.55 (13.8% below fair value)
Industry Position: 15.9% below the Manufacturing - Apparel & Accessories median (#498 of 1028)
No single metric tells the full story. See the GIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gildan is a vertically integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. It is a leader in blank T-shirts, sweatshirts, and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels, a business that has been greatly enhanced by the Hanesbrands acquisition. Gildan's brands include Hanes, Bali, Maidenform, Playtex, Gildan, American Apparel, Comfort Colors, and Goldtoe. Gildan produces most of its clothing at factories in Latin America but has been ramping up production at its new facility in Bangladesh. Incorporated in 1984, the Montreal-based company operates internationally but generated 90% of its sales in the US in 2025.
88GF Score
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