Canada's Gildan Q4 sales rise 31% on HanesBrands deal boost; hikes dividend

Reuters
Feb 26
Canada's Gildan Q4 sales rise 31% on HanesBrands deal boost; hikes dividend

Overview

  • Canada apparel maker's Q4 net sales rose 31.3% yr/yr, slightly missing analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company announced 10% dividend increase for 2026

Outlook (excluding HanesBrands Australia)

  • Gildan expects 2026 revenue between $6.0 bln and $6.2 bln

  • Company anticipates 2026 adjusted EPS of $4.20-$4.40

  • Gildan sees $250 mln cost synergies over three years

Result Drivers

  • HANESBRANDS ACQUISITION - The acquisition of HanesBrands contributed significantly to Q4 sales growth, adding $217 mln to net sales

  • COST SYNERGIES - Integration of HanesBrands is ahead of schedule, with expected cost synergies increased to $250 mln over three years

  • ACTIVEWEAR SALES - Activewear sales increased 10.3% to $788 mln, driven by HanesBrands contribution, favorable mix, and higher prices

Company press release: ID:nGNX8fSP20

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Slight Miss*

$1.08 bln

$1.09 bln (5 Analysts)

Q4 Adjusted EPS

Beat

$0.96

$0.95 (8 Analysts)

Q4 Adjusted EBITDA

$265.40 mln

Q4 Adjusted EBIT

$222.90 mln

Q4 Adjusted Gross Profit

$347.40 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the apparel & accessories peer group is "buy"

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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