-- Gildan Activewear's (GIL.TO) was higher in U.S. premarket trade Thursday as first-quarter adjusted earnings declined even as net sales jumped, but both beat estimates, while the company maintained its full year 2026 guidance and its three-year objectives for the 2026-2028 period.
Adjusted net earnings, stripped of most one-time items, declined 10.9% to US$80.1 million, or US$0.43 per share, from US$89.8 million, or US$0.59 per share, in the prior year period. The result beat the consensus analyst estimate of US$0.35 per share, according to FactSet.
First quarter net sales from continuing operations jumped 63.8% to US$1.17 billion over the same period, beating the US$1.15 billion expected.
The HanesBrands integration is progressing and is on track to generate US$100 million in synergies for 2026, the company said. It expects to realize US$250 million of annual run-rate cost synergies over the next three years.
Gildan maintained its fiscal 2026 revenue expectations of US$6.0 billion to US$6.2 billion and adjusted diluted earnings per share of between US$4.20 to US$4.40. The company also maintained its three-year objectives for the 2026-2028 period
It will pay a cash dividend of $0.249 per share on June 15, to shareholders of record on May 20.
"We are pleased with our first quarter performance, reflecting disciplined execution across the organization and continued progress against our strategic priorities. We advanced our integration initiatives as planned, with early actions reinforcing our operating model and strengthening our ability to drive efficiency and synergy capture. While the external environment remains uncertain, we are focused on what we can control -- driving operational excellence, advancing our integration of HanesBrands, maintaining cost discipline and consistent execution -- all supported by our low-cost vertically integrated platform and strong balance sheet, which position us well to deliver on our strategic and financial objectives," said Glenn Chamandy, chief executive.
Gildan shares were last seen up US$0.73, to US$57.00 in U.S. pre-market trading.