Gildan Activewear (GIL) is set to return to organic growth in Q3 and deliver on its outlook for Q2, RBC Capital Markets said in a Monday note.
The company will release its Q2 results on Thursday, and its guidance for the quarter implies a 6.8% decline in organic revenue, weighed by remaining drag from channel de-stocking and tougher comparisons from Q2 2025, according to the note.
However, RBC said said web traffic trends from its sample of wholesale distributor and print-on-demand websites seem to be in line with Gildan management's view that demand trends across wholesale and retail channels improved going into Q2.
Gildan's Q2 results also serve as potential catalyst for both sentiment and stock, the brokerage added.
RBC has an outperform rating and $78 price target on Gildan Activewear.
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