Description

Gildan Activewear Converts HanesBrands Manufacturing Shift Into Cost Discipline; But Is It Working?

Gildan Activewear’s first quarter of fiscal 2026 marks the initial period in which the financial results fully incorporate the HanesBrands acquisition. Reported net sales from continuing operations reached $1.17 billion, reflecting a 64% increase year-over-year, primarily driven by this acquisition. However, when adjusted for pro forma metrics, the company experienced a year-over-year decline in net sales largely due to a strategic inventory reduction across customer channels and the absence of certain pre-buying activities seen last year ahead of tariffs. Wholesale net sales declined to $552 million from $626 million, affected by the voluntary inventory reductions and an unfavorable mix post-acquisition, although pricing initiatives and contributions from brands like Comfort Colors and Champion partly offset this impact.