The company said the year-over-year increase reflects efforts to optimise HanesBrands’ manufacturing footprint and accelerate synergy capture, following its acquisition last year.
Wholesale sales were $552m compared to $626m, stemming from inventory reduction and preemptive buying ahead of tariffs in the comparable period last year.
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Gildan swung to an operating loss of $1.3m compared with a $129.6m operating profit a year ago, as SG&A expenses, as well as restructuring and acquisition-related costs, surged.
This comes as the HanesBrands Australian Business has been classified as held for sale and reported as discontinued operations since the fourth quarter of 2025.
Gildan booked a net loss of $65.8m compared with an $84.7m income for the same period a year ago.
“We are pleased with our first quarter performance, reflecting disciplined execution across the organisation and continued progress against our strategic priorities. We advanced our integration initiatives as planned, with early actions reinforcing our operating model and strengthening our ability to drive efficiency and synergy capture,” said Glenn J. Chamandy, Gildan’s president and CEO.
“While the external environment remains uncertain, we are focused on what we can control — driving operational excellence, advancing our integration of HanesBrands, maintaining cost discipline and consistent execution — all supported by our low-cost vertically integrated platform and strong balance sheet, which position us well to deliver on our strategic and financial objectives.”
2026 Outlook
“Our expanded scale, combined with our continued focus on strengthening our competitive position and driving profitable growth, supports our confidence in our ability to execute against our objectives. While the broader operating environment remains uncertain, we believe our low-cost vertically integrated business model and the agility it provides, together with strong industry positioning, provide a solid foundation to navigate evolving external conditions and support continued financial performance.
“Based on these factors and subject to prevailing macroeconomic conditions, we believe we are well-positioned to progress toward the three-year objectives for the 2026–2028 period as outlined in our Q4 earnings release.”
FY Guidance
- Revenue of $6.0 billion to $6.2 billion;
- Full year adjusted operating margin1 of approximately 20%;
- Capex to come in at approximately 3% of net sales;
- Adjusted diluted EPS1 in the range of $4.20 to $4.40, an increase of approximately 20% to 25% year over year;
- Free cash flow1 to be above $850 million.
