Canadian clothing manufacturer Gildan has reaffirmed its 2025 outlook, demonstrating confidence in its Gildan Sustainable Growth (GSG) strategy and vertically integrated business model, despite ongoing macroeconomic and geopolitical challenges. The company projects a mid-single-digit increase in full-year revenue, alongside a 50 basis point (bps) rise in adjusted operating margin.
Gildan forecasts adjusted diluted earnings per share (EPS) to range between $3.38 and $3.58, reflecting a year-on-year (YoY) growth of approximately 13 to 19 per cent. Capital expenditure (capex) is estimated at around 5 per cent of sales, with free cash flow expected to surpass $450 million.
The projections account for the impact of recently introduced US tariffs and shifts in global trade policies. To address these challenges, Gildan intends to leverage its operational flexibility and cost-efficient manufacturing capabilities. The company anticipates continuous growth across key product categories, driven by innovation, new programme launches, and market share expansion, according to a press release.
Gildan is also benefitting from the Barbados jobs credit programme introduced in 2024, which aids in maintaining a stable effective tax rate, even amid the implementation of global minimum tax legislation in both Canada and Barbados.
For the second quarter (Q2) of 2025, Gildan expects net sales to grow by mid-single digits, with an adjusted operating margin comparable to that of Q2 2024.
In the first quarter (Q1) of 2025, the company achieved net sales of $712 million, representing a 2.3 per cent YoY growth, aligning with the previously projected low single-digit growth. Sales in the activewear category reached $647 million, a 9 per cent YoY increase, bolstered by higher sales volumes and a favorable product mix in North America, including a higher share of fleece and ring-spun products.
The company reported continued market share gains in key growth categories and positive reception for its recently launched products featuring innovations such as new soft cotton technology. Strong sales momentum with national account customers, supported by its competitive positioning, further contributed to growth. Additionally, sales to North American distributors remained solid.
However, international sales declined by 2.5 per cent YoY, primarily due to challenges in Latin America and Asia, though this was partially offset by robust growth in Europe.
Gildan’s gross profit in Q1 2025 amounted to $222 million or 31.2 per cent of net sales, an improvement from $211 million or 30.3 per cent of net sales in Q1 2024. This 90-bps increase was driven largely by lower raw material costs. Operating income for Q1 2025 reached $130 million or 18.2 per cent of net sales, compared to $105 million or 15.1 per cent of net sales in the previous year, which included $5 million in restructuring and acquisition-related expenses.
“Through the continued successful execution of our three strategic pillars— capacity expansion, innovation and ESG —we are not only further strengthening our competitive position but also driving top line growth and enhancing profitability. Our solid foundation, underpinned by our vertically integrated business model, and our operational and financial discipline, provide us with agility to navigate the current uncertain environment. We remain deeply committed to delivering long-term value for our stakeholders and to diligently executing on the opportunities that lie ahead,” stated Glenn J. Chamandy, president and chief executive officer (CEO) of Gildan.
The company has continued to receive accolades for its sustainability initiatives. Gildan was recognized in S&P’s 2025 Sustainability Yearbook for the 13th consecutive year and was listed in the Carbon Disclosure Project’s (CDP) Leadership Band for the fifth time. These achievements highlight its progress in greenhouse gas (GHG) emission reduction, risk management, and environmental, social, and governance (ESG) practices, as detailed in the release.
