Montreal-based apparel maker Gildan Activewear reported record fourth-quarter sales from continuing operations of $1.08 billion (approximately €920 million). This corresponds to an increase of 31.3 percent compared to the previous year. The development was significantly strengthened by the completion of the HanesBrands acquisition on December 1, 2025, which contributed additional revenue of $217 million in the final month of the quarter.
For the full fiscal year 2025, the company reported revenue of $3.62 billion.
Integration and accelerated synergies
The integration of HanesBrands is reportedly progressing faster than planned. Management increased its annual cost synergies target to $250 million over the next three years. The original budget was $200 million.
Important integration measures have already started. Two HanesBrands textile plants are scheduled to close at the beginning of 2026. Production will move to Gildan’s low-cost, vertically integrated network. Gildan expects around $100 million in synergies for both 2026 and 2027. At least $50 million is forecast for 2028.
In addition, a new trading structure was implemented, which led to an adjustment of financial reporting. From the first quarter of 2026, sales will no longer be reported according to product groups, but rather according to the “Retail” and “Wholesale” categories.
Strategic divestiture and global expansion
Following a strategic review, Gildan has initiated a formal sale process for HanesBrands’ Australian business. This is now classified as a discontinued operation. The potential proceeds are to be used to reduce debt and accelerate the return to the target debt framework of 1.5 to 2.5 times net debt to adjusted earnings before interest, taxes, depreciation on property, plant and equipment and amortization of intangible assets (EBITDA).
The company also announced the construction of “phase two” of its manufacturing complex in Bangladesh. This includes a second textile plant. Construction is scheduled to take place within the next 18 months, with production starting at the end of 2027. With the expansion, Gildan aims to further strengthen its cost leadership in the underwear and ring-spun apparel categories.
Financial outlook and shareholder returns
For the 2026 fiscal year, Gildan expects sales of between six and 6.20 billion US dollars. This would represent an increase of approximately 65 to 70 percent year-over-year and reflects the first full fiscal year with HanesBrands’ contribution. Adjusted diluted earnings per share are expected to be between $4.20 and $4.40.
The board also approved a 10 percent increase in the quarterly dividend to $0.249 per share. However, share buybacks have been temporarily suspended until the leverage ratio returns to the target range.
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