Gildan Activewear Inc. (GIL) has dramatically scaled back its full-year 2026 revenue forecast, cutting the top end of its guidance range by roughly $700 million from prior expectations.
The Montreal-based apparel maker now anticipates 2026 revenue of between $5.4 billion and $5.5 billion, a steep retreat from the $6.0 billion to $6.2 billion range it had previously communicated to investors.
Earnings expectations suffered an equally sharp revision, with adjusted diluted EPS now projected at $3.70 to $3.80, compared with the earlier forecast of $4.65 to $4.75.
In a move signaling how rapidly conditions have shifted, Gildan also withdrew its broader 2026 through 2028 financial objectives entirely, citing rapidly changing macroeconomic conditions as the driving factor.
The guidance reset followed a third quarter in which net sales of $1.47 billion, while up 61.1 percent from a year earlier, still fell well short of the company’s own guidance of approximately $1.65 billion.
Analysts had been expecting roughly $1.63 billion in quarterly revenue, making the miss notable even after accounting for the significant year-over-year growth driven by the HanesBrands acquisition.
Gildan attributed the revenue shortfall to a combination of weaker consumer demand, lower customer replenishment activity, product availability and service constraints, and lower selling prices across its business.
President and CEO Glenn J. Chamandy acknowledged the difficult environment, noting the company faced a more subdued demand environment and near-term challenges in both wholesale and retail operations.
Despite the top-line disappointment, adjusted diluted EPS still climbed 54 percent year over year in the quarter, reflecting the scale benefits that accompanied the HanesBrands deal.
Gross margin performance was supported by IEEPA tariff refunds along with reduced manufacturing and raw material costs, providing some buffer against the softer revenue picture.
On the cash front, Gildan generated $633 million from operating activities during the quarter, with free cash flow reaching $606 million, underscoring the underlying financial strength of the enlarged business.
The company said integration work tied to the HanesBrands acquisition is proceeding on schedule, with most of the synergy-capture measures planned for 2026 already put in place.
In a signal of confidence in its longer-term position, Gildan simultaneously announced a new share repurchase program authorizing the buyback of up to 5 percent of its outstanding shares.
Investors will be watching closely to see whether stabilizing consumer demand or improving wholesale trends emerge before the company provides its next update on the revised financial trajectory.
