Monitor wholesale channel recovery and inventory normalization in coming quarters; watch for de-leveraging progress toward the 1.5-2.5x target as a catalyst for resuming share buybacks. The Q1 adjusted operating margin of 14.3% beat guidance of ~12.9%, but the integration costs and leverage remain headwinds.
Price Chart
Executive Summary
Gildan's Q1 2026 results show total net sales up 63.8% to $1.166B, driven by the HanesBrands acquisition, but wholesale organic sales declined 11.9% and GAAP net loss from continuing operations was $55.1M due to $61M in restructuring and $106.3M inventory step-up costs. Adjusted diluted EPS fell 27.1% to $0.43, while net debt leverage rose to 3.3x, above the 1.5-2.5x target range. The dividend was increased 10.2% to $0.249.
Key Facts
- Net sales from continuing operations: $1.166B, up 63.8% YoY (vs $711.7M), in line with guidance of ~$1.15B.
- Wholesale sales declined 11.9% to $552.1M due to proactive inventory reduction and non-recurrence of preemptive tariff buying.
- Retail sales surged to $613.9M from $85.3M, reflecting the HanesBrands acquisition.
- GAAP net loss from continuing operations: ($55.1M) vs income of $84.7M in Q1 2025.
- Adjusted diluted EPS from continuing operations: $0.43, down 27.1% from $0.59.
- Adjusted gross margin improved 180 bps to 33.0%; adjusted operating margin declined 470 bps to 14.3%.
- Net debt leverage ratio: 3.3x (target 1.5-2.5x); share repurchases paused.
- Restructuring and acquisition-related costs: $61.0M; inventory fair value step-up: $106.3M.
- Free cash flow: ($309.9M) vs ($165.5M) in Q1 2025.
- Quarterly dividend increased 10.2% to $0.249 per share.
Financial Impact
Revenue increased $454M but adjusted net earnings decreased $9.9M; net debt increased $450.5M to $4.87B; adjusted EBITDA up $55.2M to $221.1M.
Risk Factors
- Further wholesale volume declines if inventory reduction persists longer than expected.
- Tariff uncertainty and potential new trade measures could pressure margins or require additional pricing actions.
- High net debt leverage (3.3x) constrains capital allocation flexibility and may delay share repurchases.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001061894-26-000013 |
| Exhibit: exhibit992q12026fs.htm | 0001061894-26-000013 |
| Exhibit: exhibit993-q12026interimce.htm | 0001061894-26-000013 |
| Exhibit: exhibit994-q12026interimcf.htm | 0001061894-26-000013 |
| Document: form6-kxinterimfilingq12026.htm | 0001061894-26-000013 |
| Document: 0001061894-26-000013-index-headers.html | 0001061894-26-000013 |
| Document: 0001061894-26-000013-index.html | 0001061894-26-000013 |
| Document: 0001061894-26-000013.txt | 0001061894-26-000013 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 17, 2026 6w ago | Press Release | $55.76 $46.88 | ▼ −15.93% | ▼ −14.94% | $40.94 (−26.58%) |
Jul 30, 2026 9w ago | 6-K | $52.50 $53.23 | ▲ +1.39% | ▼ −2.57% | $40.94 (−22.02%) |
May 1, 2026 22w ago | Press Release | $61.51 $59.16 | ▼ −3.82% | ▼ −9.11% | $40.94 (−33.44%) |
Apr 30, 2026 22w ago | 6-K | $61.71 $60.98 | ▼ −1.18% | ▼ −6.41% | $40.94 (−33.66%) |
Apr 30, 2026 22w ago | Press Release | $61.71 $60.98 | ▲ +1.18% | ▲ +6.41% | $40.94 (+33.66%) |
Apr 16, 2026 24w ago | Press Release | $56.99 $56.69 | ▼ −0.53% | ▼ −6.34% | $40.94 (−28.16%) |
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