GIL · Gildan Activewear Inc.

Gildan Activewear's first quarter 2026 results reflect the immediate financial impacts of the transformative HanesBrands acquisition completed on December 1, 2025. While net sales surged 63.8% to $1.17 billion compared to the prior year period, the company swung to a net loss of $65.8 million, or $0.36 per share, compared to net earnings of $84.7 million in the same quarter last year. The profitability decline was driven primarily by a significant increase in selling, general, and administrative expenses to $218.7 million and $61.0 million in restructuring and acquisition-related costs. Financial expenses, net, also increased substantially to $66.7 million, reflecting the debt financing utilized for the acquisition.

Operationally, the company reported negative operating cash flow of $279.5 million, a significant shift from the prior year, attributed to changes in non-cash working capital balances. Financing activities provided $265.2 million in cash, largely from a $415.0 million increase in amounts drawn under the long-term bank credit facility. The balance sheet shows total debt of approximately $4.72 billion as of March 29, 2026. Management has classified HanesBrands Australia (HAA) as a discontinued operation, with the intent to sell the business within twelve months of acquisition. The company declared dividends of $46.2 million during the quarter.