Fashion
Canada’s Gildan posts $3.6 bn 2025 sales, growth supported by Hanes
Activewear sales rose 9 per cent to $3,088 million, while Innerwear sales increased 21 per cent largely due to the acquisition. International sales declined 5 per cent to $240 million.
Gildan Activewear has reported full-year 2025 net sales of $3,619 million, up 11 per cent, supported by HanesBrands integration and growth in Activewear and Innerwear.
Adjusted EPS rose 17 per cent to $3.51, while free cash flow reached $493 million.
The company targets $250 million synergies by 2028, plans Bangladesh Phase 2 expansion, and forecasts 2026 revenue of $6-6.2 billion.
The gross profit increased to $1,130 million and gross margin improved 50 basis points to 31.2 per cent, supported by lower manufacturing and raw material costs alongside favourable pricing, partly offset by tariff pass-through. Adjusted for a $35.4 million inventory fair value step-up related to the transaction, adjusted gross profit reached $1,165 million with adjusted gross margin of 32.2 per cent; the remaining $237 million step-up is expected to flow through cost of sales in 2026, Gildan said in a press release.
Selling, general and administrative (SG&A) expenses were $389 million, while adjusted SG&A rose to $387 million (10.7 per cent of sales) from $308 million (9.4 per cent), reflecting consolidation effects and higher variable compensation. Operating income stood at $620 million (17.1 per cent margin) versus $618 million (18.9 per cent) in 2024, while adjusted operating income increased to $779 million, lifting adjusted operating margin to 21.5 per cent.
Net financial expenses climbed $45 million to $149 million due to acquisition-related borrowing. GAAP diluted EPS from continuing operations was $2.57 compared with $2.46, while adjusted diluted EPS rose 17 per cent to $3.51, benefiting from a lower diluted share base.
Operating cash flow increased to $606 million from $501 million, and free cash flow reached $493 million after capex of $114 million. Year-end net debt was $4,417 million, with leverage at 3.0x net debt to trailing 12-month proforma adjusted EBITDA.
In the fourth quarter (Q4), net sales from continuing operations rose 31.3 per cent to $1,078 million, with operating margin at 9.2 per cent and adjusted operating margin at 20.7 per cent. GAAP diluted EPS declined to $0.32, while adjusted diluted EPS increased to $0.96. Quarterly operating cash flow rose to $336 million and free cash flow to $304 million.
Integration progress is ahead of plan, with expected annual run-rate cost synergies of about $250 million by end-2028, up from the earlier $200 million target. The company plans to close two HanesBrands textile facilities in early 2026 as part of footprint optimisation.
Gildan has initiated a formal sale process for the HanesBrands Australian business, expected to generate approximately $675 million in net sales and $0.21 in diluted EPS in 2026, with proceeds earmarked for debt reduction.
For 2026, excluding HanesBrands Australia, Gildan forecasts revenue of $6-6.2 billion and adjusted diluted EPS of $4.2-4.4, alongside adjusted operating margin of about 20 per cent and free cash flow above $850 million. The company also approved a 10 per cent dividend increase, declaring a quarterly dividend of $0.249 per share.
Looking ahead, Gildan plans to develop a second textile facility within its Bangladesh complex, with initial production targeted for late 2027. From Q1 2026, segment reporting will shift from product categories to Retail and Wholesale to align with its go-to-market structure.
“Our results underscore the impressive execution by our global team whose focus is now on fully capturing the value of our expanded platform. As we look ahead to 2026, we are very excited about the HanesBrands acquisition which doubles our scale, combines iconic brands with our world-class, low-cost, vertically integrated platform, and unlocks a powerful engine for innovation and growth. The integration is well underway, and we now expect to deliver higher than initially targeted run-rate cost synergies reaching approximately $250 million by the end of 2028 with approximately $100 million in 2026,” said Glenn J Chamandy, president and CEO at Gildan Activewear.
Fibre2Fashion News Desk (SG)
In the course of a meeting with Hun Manet at the Peace Palace in Phnom Penh, Ambassador DesRoches expressed appreciation for the long-standing diplomatic ties, highlighting the steady progress in bilateral relations, particularly in trade and Canadian investment in Cambodia.
The envoy underscored his country’s commitment to supporting Cambodia’s successful hosting of the 20th Francophonie Summit. He stressed Canada’s commitment to further strengthening and expanding cooperation between the two countries, especially in trade and economic relations, while also reaffirming support for Cambodia’s development priorities.
Cambodian PM Hun Manet and Canadian ambassador to the country Christian DesRoches recently discussed strengthening economic ties, while advancing preparations for the 20th Francophonie Summit scheduled for November.
The envoy stressed Canada’s commitment to further strengthening and expanding bilateral cooperation, especially in trade and economic ties, and reaffirmed support for development priorities.
He thanked Cambodia for its support in promoting Canada’s economic cooperation with the Association of Southeast Asian Nations (ASEAN) and advancing negotiations for the ASEAN-Canada Free Trade Agreement (ACFTA), expected to be concluded and signed soon, according to Cambodian media reports.
Fibre2Fashion News Desk (DS)
CBP is developing the Consolidated Administration and Processing of Entries (CAPE) functionality within the Automated Commercial Environment (ACE) to streamline the submission and processing of valid refund requests for duties imposed under the International Emergency Economic Powers Act (IEEPA), as authorised by court order or applicable law.
US Customs and Border Protection will launch on April 20 an electronic system that importers can use to claim tariff refunds authorised by court order or applicable law.
Phase 1 will be limited to certain unliquidated entries and certain entries within 80 days of liquidation.
Refunds will be issued within 60-90 days of the Consolidated Administration and Processing of Entries declaration getting accepted.
Phase 1 will be limited to certain unliquidated entries and certain entries within 80 days of liquidation.
CAPE is designed to consolidate refunds of IEEPA duties including interest rather than processing refunds on an entry-by-entry basis.
CBP plans to implement CAPE through a phased development approach, adding more functionality in subsequent phases for more complicated scenarios, it said in a release.
Valid IEEPA refunds will generally be issued within 60-90 days following acceptance of the CAPE declaration, unless a compliance concern requires further CBP review.
However, certain scenarios, such as entries that are extended, suspended or under review, and warehouse entries, will maintain their liquidation status with validated refunds issued at liquidation.
Fibre2Fashion News Desk (DS)
Named in honor of Gap Inc. co-founder Doris Fisher, the program reflects her legacy of creativity, curiosity, and belief in people. It also builds on Gap Inc.’s commitment to helping bridge the opportunity gap by creating stronger connections between education and careers in the fashion industry.
Gap Inc., led by Richard Dickson, has launched The Doris Fisher Creators Program with the Fashion Institute of Technology to mentor students in fashion careers.
Starting Fall 2026, the programme will offer structured mentorship, industry exposure, and networking for select students, honouring Doris Fisher and strengthening pathways from education to careers.
“Gap Inc. is a house of iconic American brands guided by our purpose — to bridge gaps to create a better world. That includes bridging the opportunity gap. FIT embodies that same spirit, bringing education and industry together to unlock talent and expand what’s possible. We’re committed to opening doors, investing in emerging creatives, and building meaningful pathways into this industry for the next generation,” said Dickson.
The Doris Fisher Creators Program will connect FIT students with Gap Inc. leaders and creatives through a structured mentorship experience designed to provide exposure to the business of fashion, industry insights, and meaningful professional connection.
The program will launch in Fall 2026 and run through the academic year, and the inaugural cohort will include students from select disciplines, including Fashion Design, Graphic Design (Apparel), and Fabric Styling.
“Supporting emerging talent is a core expression of Gap Inc.’s purpose in action. Through initiatives such as The Doris Fisher Creators Program — alongside This Way ONward, the Rotational Management Program, and our broader internship and mentorship efforts — the company continues to bridge the opportunity gap for young people looking to start meaningful careers in fashion and retail,” added Amy Thompson, Chief People Officer at Gap Inc.
“We are incredibly proud to be the first public college to partner with Gap Inc. on this groundbreaking mentorship program. This remarkable opportunity with one of the world’s most iconic brands will support 30 talented FIT students over the next year, placing them at the intersection of innovation and impact,” said Jason S. Schupbach, president of FIT.
A benefit for the FIT Foundation, this year’s FIT Annual Gala honored Gap Inc. President & CEO Richard Dickson and was attended by distinguished guests and alumni including Ciara, Aloe Blacc, Zac Posen, Bob Fisher and others.
The FIT Foundation provided scholarships totaling more than $3 million in 2025.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
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