Gildan Activewear: What’s Driving Its Surprise Move Into Hats, Bags, and Beyond?

Gildan Activewear’s third quarter results for 2025 reflect a mixed performance amidst a challenging macroeconomic environment. The company reported net sales of $911 million, up 2.2% year-over-year. This growth was primarily driven by a 5.4% increase in Activewear sales, attributed to favorable product mix and higher net prices. However, the hosiery and underwear category experienced a decline of 22%, affected by shipment timing shifts to the fourth quarter and broader market weaknesses, albeit with expectations of a rebound in Q4. The company’s adjusted operating margins stood at 23.2%, demonstrating an 80 basis point improvement year-over-year, supported by lower manufacturing costs and favorable pricing strategies. Notably, the gross margin improved to 33.7%, largely driven by cost efficiencies in manufacturing, the benefits of integrating Bangladesh’s low-cost operations, and optimization within their yarn operations.