Gildan Activewear ended the fourth quarter with a sharp uplift in reported sales, kicked off a formal divestment process for HanesBrands’ Australian operation, and reaffirmed plans to expand manufacturing capacity in Bangladesh moves that underscore how the company is reconfiguring its platform following the Gildan HanesBrands acquisition.
Net sales for the quarter reached $1,078.5m, up 31.3% from $821.5m a year earlier. Gildan noted that the period includes a $217m contribution from HanesBrands covering 1–28 December 2025; excluding that impact, organic sales growth was 4.9%.
Alongside the integration work, Gildan said it will build a second textile facility at its Bangladesh complex as part of a Phase 2 expansion programme. The company expects construction and development to take place over roughly the next 18 months, with initial production beginning in the latter part of 2027. Management described Bangladesh as central to its cost leadership in ring-spun and innerwear, and said the additional facility should strengthen its ability to support the company’s key growth engines. Gildan added that required infrastructure is already in place and the investment is expected to remain within its capex guidance.
The company has been positioning itself as a larger player in global basics since announcing the HanesBrands transaction in August and closing the deal on 1 December. It now expects annual run-rate cost synergies to reach $250m over the next three years—above the $200m previously targeted.
As part of portfolio actions following the Gildan HanesBrands acquisition, Gildan has initiated a sale process for HanesBrands’ Australian business (HAA) and reclassified it as discontinued operations. The company said HAA’s net sales and diluted EPS for 2026 are expected to be about $675m and $0.21, respectively.
“2025 was another important year for Gildan with several highlights, including record revenue from continuing operations of $3,619m, adjusted operating margin of 21.5%, adjusted diluted EPS growth of 17.0% versus last year, and the closing of the HanesBrands acquisition on December 1. Our results underscore the impressive execution by our global team whose focus is now on fully capturing the value of our expanded platform,” said Glenn J. Chamandy, president and CEO.
Q4 metrics: higher revenue, lower operating margin
Operating income for the quarter was $99m, equal to 9.2% of net sales, compared with $179m, or 21.8% of net sales, in the prior-year period. Gross profit rose to $312m, but gross margin eased to 28.9% from 30.8% a year earlier. Gildan said operating income slipped to $98.7m from $179m due to increased restructuring costs, while net income rose 29.7% year on year to $153.5m.
Activewear sales increased 10.3% to $788m, reflecting the HanesBrands contribution, improved mix and higher net selling prices. The company said distributor demand in North America remained solid and was reinforced by continued growth with national accounts, driven by its overall competitive position, new programmes and market share gains in key growth categories.
Regionally, US net sales rose 33.7% to $976.6m from $730.6m, while Canada grew 29% to $34.2m from $26.5m. International sales increased 5.1% to $67.7m, supported by acquisition-related gains but partially offset by softer demand in certain markets.
2026 guidance
Excluding HAA and based on continuing operations, Gildan expects 2026 revenue of $6.0bn to $6.2bn and an adjusted operating margin of about 20%. Capital expenditure is projected at roughly 3% of net sales. Adjusted diluted EPS is expected at $4.20 to $4.40, while free cash flow is forecast to exceed $850m.
For Q1 2026, net sales from continuing operations are expected to be about $1.1bn, reflecting ongoing consolidation of manufacturing facilities intended to accelerate synergy capture and support the company’s new operating model.
Chamandy continued: “As we look ahead to 2026, we are very excited about the HanesBrands acquisition, which doubles our scale, combines iconic brands with our world-class, low-cost, vertically integrated platform, and unlocks a powerful engine for innovation and growth. The integration is well underway, and we now expect to deliver higher than initially targeted run-rate cost synergies reaching approximately $250m by the end of 2028, with approximately $100m in 2026.”