Gildan Activewear's stock surged 5.33% in pre-market trading, as investors reacted to a trio of positive announcements including better-than-expected quarterly earnings, a beefed-up full-year profit outlook, and a strategic divestiture.

The company reported adjusted earnings per share for the fiscal second quarter that comfortably beat analyst estimates, demonstrating robust profitability. More importantly, management significantly raised its adjusted earnings per share guidance for the full year 2026 to a range well above the consensus forecast, signaling confidence in the business's trajectory.

Adding to the bullish sentiment, Gildan agreed to sell its HanesBrands Australia unit for an enterprise value of approximately $490 million. The proceeds are earmarked to pay down debt, which will accelerate the company's return to its target leverage range. Once that is achieved, Gildan intends to launch a share repurchase program, further enhancing shareholder value.