| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 54 | 143.2x | 17.8x | Around median | |
Growth | 78 | 41.0% | 7.1% | Top tier | |
Quality | 66 | 11.1% | 4.5% | Around median | |
Safety | 42 | 5.3x | 2.6x | Around median | |
Capital Return | 23 | 1.87% | 2.12% | Bottom tier | |
Momentum | 26 | 3.8% | 2.9% | Bottom tier | |
Sentiment | 68 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Gildan Activewear manufactures and markets basic and branded apparel through two main channels: wholesale and retail. Its portfolio includes Gildan, Hanes, Comfort Colors, American Apparel, Champion, and ALLPRO, and it benefits from selling products such as underwear, fleecewear, and ring-spun cotton T-shirts, in addition to new categories such as Hanes scrubs. The HanesBrands acquisition significantly expanded the retail business, while the growth strategy relies on product and packaging innovation, brand building, and optimization of the manufacturing network and supply chain.
In Q2 of fiscal 2026, revenue from continuing operations reached $1.58 billion, up 72.3% year over year, driven primarily by the HanesBrands acquisition. The wholesale segment recorded $769 million, down 1.5% year over year, while the retail segment reached $813 million versus $137 million in the corresponding period due to the acquisition; retail therefore represented approximately 51% of sales and wholesale approximately 49%. Compared with pro forma revenue of $1.72 billion for the combined entity, sales declined due to customer inventory reductions, weak consumer demand, and the non-recurrence of preemptive purchases made in Q2 of fiscal 2025.
Gross profit in Q2 of fiscal 2026 was approximately $460 million, with a margin of 29.1%, versus 31.5% a year earlier, affected by an $86 million acquisition-related inventory revaluation charge. On an adjusted basis, gross profit reached $545 million and its margin reached 34.5%, while adjusted operating income was $352 million, with a margin of 22.3%, 40 basis points lower year over year but 260 basis points above the prior guidance for the quarter. GAAP diluted earnings per share were $0.49, while adjusted diluted earnings per share rose 32% to $1.28, including a $0.11 benefit from IEEPA tariff refunds.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $77.25 and a wide range between $67 and $83. The average is above the top of the 52-week range of $73.70, implying that the increase in adjusted earnings per share to $4.65–$4.75 and the achievement of approximately $1 billion in free cash flow in fiscal 2026 will offset retail weakness and leverage of 3.2 times; however, the divergence in targets underscores the valuation's sensitivity to the execution of the HanesBrands integration and debt reduction.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue from continuing operations reached $1.58 billion in Q2 of fiscal 2026, up 72.3% year over year, with the HanesBrands acquisition as the primary driver. Retail sales increased to $813 million from $137 million, while wholesale declined 1.5% to $769 million. On a pro forma basis, revenue was below $1.72 billion due to distributor destocking, retailers' cautious inventory management, and the non-recurrence of preemptive purchases made ahead of price increases in Q2 of fiscal 2025.
Gildan is targeting approximately $100 million in savings in fiscal 2026 and said that the vast majority of the initiatives planned for that year had been implemented by July 30, 2026. It is targeting an additional $100 million in fiscal 2027 and $50 million in fiscal 2028, for an annual total of at least $250 million. Conversely, the acquisition added accounting and financing costs, including an $86 million inventory revaluation charge and an increase in net financial expenses to $69 million in Q2 of fiscal 2026.
The company raised its adjusted diluted earnings per share guidance to $4.65–$4.75, from $4.20–$4.40 previously, and increased its adjusted operating margin forecast to approximately 21.8% from approximately 20%. The update includes approximately $220 million in IEEPA tariff refunds, of which nearly $25 million was recognized in Q2 of fiscal 2026. The company will reinvest approximately half of the non-recurring refunds in marketing, promotion, innovation, and packaging, while the CAFTA-DR exemptions represent an ongoing structural benefit.
Weakness was broad-based in retail during June 2026 and prompted some major customers to reduce their seasonal inventory builds. Gildan therefore revised its fiscal 2026 market assumption from flat to up low single digits to flat or down low single digits and expects revenue at the low end of the $6.0–$6.2 billion range. Nevertheless, the company expects wholesale and retail to return to growth in Q3 of fiscal 2026, with revenue of approximately $1.65 billion, supported by the end of destocking and the launch of new programs and products.
On July 30, 2026, Gildan entered into a definitive agreement to sell HanesBrands Australia to BBFIT Investments at an enterprise valuation of approximately AUD $700 million, or approximately USD $490 million based on the exchange rate cited in the call. The transaction is expected to close in the second half of fiscal 2026 following regulatory approvals and satisfaction of customary closing conditions, and the proceeds will be used to repay a portion of the debt. Net debt was approximately $4.69 billion and leverage was 3.2 times at the end of the first half of fiscal 2026, while the company targets a range of between 1.5 and 2.5 times.
Comfort Colors, American Apparel, and Champion achieved double-digit growth in Q2 of fiscal 2026 and contributed to wholesale outperforming a market that declined by the low single digits. ALLPRO also continued to gain momentum, the Gildan soft style collection outperformed the market, and the company launched the Hanes scrubs line. Gildan is supporting the Hanes brand with a campaign targeting approximately 1 billion impressions and reach of nearly 120 million consumers, alongside investments in product quality, innovation, and packaging.
