By Adriano Marchese
Gildan Activewear set its full-year guidance that fell short of Wall Street expectations after a soft fourth quarter, tempering the lift it expects from its recently closed HanesBrands acquisition.
The Canadian apparel manufacturer expects revenue to be between $6 billion and $6.2 billion in 2026. The guidance includes contributions from the HanesBrands acquisition which closed on Dec. 1, but not its Australia business which Gildan has put up for sale after a strategic review.
Adjusted earnings per share are expected to be in the range of $4.20 and $4.40, with adjusted operating margin of around 20%, it said. Capital expenses are expected to be 3% of sales.
Analysts expected a higher step up in growth, forecasting to revenue grow to $6.98 billion, and adjusted EPS at $4.52.
For the fourth quarter, Gildan posted a decline in net income to $56.1 million, or 35 cents a share, down from 132.3 million, or 86 a share, in the comparable quarter a year ago.
Adjusted earnings came to 96 cents a share. According to FactSet, analysts were expecting $1.00 a share.
Net sales, which includes the $217 million contributions from the recently acquired HanesBrands, rose to $1.08 billion from $821.5 million, coming in shy of forecasts which expected a greater rise to $1.15 billion.
Sales to North American distributors remained strong, Gildan said, with continued growth in national accounts, gaining market share in key growth categories. Demand for its cotton t-shirts, sweatshirts and casual basics as well as new offerings like remained robust. Innerwear sales nearly tripled thanks the HanesBrands contribution, while international revenue rose 5.1% despite softer market demand.
With HanesBrands now being integrated into the broader business, Gildan said it now expects to achieve about $250 million in annual cost synergies over the next three years, up from its earlier $200 million estimate.
Gildan said it projects roughly $100 million per year in 2026 and 2027, and at least $50 million in 2028, and said it will pursue additional opportunities as integration continues.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 26, 2026 07:25 ET (12:25 GMT)
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