Description

Gildan Activewear’s $250 Million HanesBrands Synergy Plan — Can Integration Transform Earnings?

Gildan Activewear reported second-quarter 2026 results that reflected the impact of its HanesBrands acquisition, completed eight months earlier. Net sales from continuing operations increased 72% year-over-year to $1.58 billion, driven primarily by the acquired business. Adjusted diluted EPS from continuing operations rose 32% to $1.28. Integration efforts are progressing, with approximately $100 million of cost synergies expected in 2026 and another $100 million targeted for 2027. Gildan continues to target $250 million of annual run-rate synergies within three years through manufacturing optimization, supply chain improvements, distribution efficiencies, and IT standardization. Wholesale inventories remained balanced, with share gains in several growth categories and momentum across Comfort Colors, American Apparel, and Champion. Wholesale sales declined slightly as Gildan reduced inventories and implemented integration measures. Retail sales increased substantially because of HanesBrands, although cautious retailer ordering reflected a softer consumer environment.