-- Stifel Canada is maintaining its first-quarter forecasts for Gildan Activewear (GIL.TO), which is scheduled to publish its fiscal first-quarter results on April 30th.
Analyst Martin Landry is expecting earnings per share to fall 42% to $0.34, inline with consensus of $0.35. He is maintaining a buy rating and US$80.00 on the shares of the company.
Landry noted that since Gildan introduced its 2026 guidance, several headwinds have emerged: cotton and polyester prices have risen significantly and may begin to weigh on Gildan's cost of goods sold in Q4/26. Energy and freight costs have also increased rapidly following outbreak of the war in Iran, creating further unexpected pressure on Gildan's cost structure.
"While we do not believe Gildan's 2026 financial guidance is at risk yet, it could come under pressure if elevated energy and commodity prices persist," he adds. However, Landry still sees value in Gildan's shares at current levels, which is down 9% in the last three months compared with the S&P/TSX Consumer Discretionary Index which is up 1.5% during the same period.
Price: $83.19, Change: $+0.44, Percent Change: +0.53%