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Research Alert: Gildan Activewear Beats Q1 Estimates In First Quarter Since Hanes Acquisition

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

GIL reported Q1 2026 revenues of $1.17B (+64% Y/Y), $18M above estimates, due to the HanesBrands acquisition, while adjusted EPS declined to $0.43 from $0.59 but beat consensus by $0.08. Wholesale sales fell 12% to $552M due to inventory reduction and lack of preemptive tariff buying, while Retail surged to $614M from $85M primarily from the HanesBrands contribution. We expected a somewhat sloppy Q1 due to the acquisition but are pleased the company maintained its full-year and medium-term guidance. Management noted early synergies from integration, though operating margin compressed 470 bps to 14.3% reflecting HanesBrands' higher SG&A structure. Net debt leverage rose to 3.3x above the target range of 1.5-2.5x, leading to a continued pause in share repurchases until the ratio approaches the midpoint. GIL trades under 14x consensus NTM EPS estimates and slightly above its three-year average forward P/E multiple of 13x.

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