The Canadian textile group Gildan Activewear Inc. closed the third quarter of the 2025 financial year with a small increase in sales. Profit fell but exceeded market expectations. This emerges from an interim report that the company published on Wednesday.
In the most recent quarter, which ended on September 28th, group sales reached 910.6 million US dollars (782.3 million euros). This exceeded the level of the same period last year by 2.2 percent and reached a new record.
The activewear division was the growth driver, with an increase of 5.4 percent to $830.6 million. Management justified the increase with higher prices and a more favorable product mix. In the stockings and underwear segment, however, sales fell by 22.1 percent to $80.0 million.
Negative special effects weigh on profits
The gross margin increased from 31.2 to 33.7 percent compared to the same quarter last year. According to the company, this was due to lower raw material and production costs as well as price increases intended to offset increased tariff rates.
Due to higher sales overhead costs and restructuring expenses, operating profit of $192.1 million was slightly below the corresponding previous year’s level (-0.4 percent). However, adjusted for special effects, it rose by 6.1 percent.
Reported net profit fell 8.6 percent to $120.2 million (€103.3 million) compared to the same quarter last year. The surplus adjusted for special items, however, grew by 8.1 percent to $148.8 million, exceeding analysts’ expectations.
Management specifies its earnings forecast
In view of the latest developments, the group specified its annual forecast for diluted earnings per share adjusted for special items. 3.45 to 3.51 US dollars are now expected, which would mean an increase of 15 to 17 percent compared to the previous year. Previously, 3.40 to 3.56 US dollars had been promised.
The sales target remained unchanged. For the current financial year, management continues to expect an increase of a mid-single-digit percentage.
Next year, the group will benefit from additional capacities and range as a result of the takeover of competitor Hanesbrands, which was agreed in August, explained CEO Glenn Chamandy. The transaction is expected to be completed by the beginning of 2026 at the latest.