The capital expenditure of the company is projected at around 5 per cent of sales. It narrowed its adjusted diluted earnings per share (EPS) guidance to $3.4–$3.56, representing a year-over-year (YoY) increase of approximately 13 to 19 per cent, slightly adjusted from the earlier range of $3.38–$3.58. Free cash flow is expected to exceed $450 million.
Gildan has reported strong H1 2025 results with net sales up 4.6 per cent to $1.63 billion, driven by 10.6 per cent growth in activewear.
Q2 net sales hit $919 million, led by new product innovations. Adjusted EPS rose to $1.56.
For FY25, Gildan expects mid-single-digit revenue growth, adjusted EPS of $3.40–$3.56, and free cash flow above $450 million, reaffirming its sustainable growth strategy.
The company has reaffirmed its full-year 2025 guidance, underpinned by the continued execution of its Gildan Sustainable Growth (GSG) strategy. Despite a volatile macroeconomic environment, the company remains confident in its vertically integrated, low-cost manufacturing model and strong market positioning.
The guidance also accounts for current tariffs and mitigation strategies, anticipated growth in key product categories, new programme launches, ongoing market share gains, and the continued benefit of the Barbados jobs credit introduced in 2024. It also includes continued share repurchases within Gildan’s set leverage framework, the company said in a press release.
For the third quarter (Q3) of 2025, it expects net sales to rise in the low single digits, influenced by a timing shift in orders. Adjusted operating margin and effective tax rate are projected to remain consistent with Q2 and the full year 2024 levels.
Meanwhile, Gildan posted net sales of $1,630 million in the six months of 2025 ended June 29, marking a 4.6 per cent YoY increase. The activewear sales rose by 10.6 per cent to $1,470 million, driven mainly by increased volumes and a favourable product mix, particularly across US distributors and national accounts.
This growth was partially offset by ongoing weakness in international markets, where sales declined 9.2 per cent to $112 million.
Sales in the hosiery and underwear segment dropped 30 per cent, impacted by reduced volumes, an unfavourable mix, overall market softness, and the discontinuation of the Under Armour line in the first quarter (Q1) of 2025.
The gross profit of the company climbed by $38 million to $511 million, with the gross margin improving by 100 basis points (bps) to 31.4 per cent, attributed to lower raw material costs and favourable pricing. SG&A expenses were down $60 million to $169 million.
On an adjusted basis, selling, general and administrative (SG&A) expenses stood at $167 million, or 10.3 per cent of net sales—up from 9.8 per cent last year—mainly due to increased variable compensation and distribution costs.
The operating income in Q2 rose to $329 million, representing 20.2 per cent of net sales, up from $246 million or 15.8 per cent last year. Adjusted operating income reached $344 million, or 21.1 per cent of net sales—an improvement of $23 million and 50 basis points YoY.
As a result of stronger financial performance and a reduced share count, GAAP diluted EPS surged to $1.47, while adjusted diluted EPS rose to $1.56, compared to $0.81 and $1.33 respectively in the prior-year period.
In the second quarter (Q2) of 2025, the company has reported net sales of $919 million, up 6.5 per cent year-over-year (YoY), aligning with its projected mid-single-digit growth. Activewear led the way with $822 million in sales, rising 12 per cent on the back of higher volumes, improved product mix, and pricing.
The launch of innovative products, including its new Soft Cotton Technology, helped drive market share gains and favourable customer reception, particularly across North American distributors and national accounts.
International sales in Q2, however, declined 14.1 per cent due to continued demand softness. Sales in the hosiery and underwear segment also fell sharply by 23.3 per cent to $96 million, reflecting weak market conditions and lower volumes.
The gross profit rose to $289 million, or 31.5 per cent of net sales, up from 30.4 per cent a year ago, supported by lower input costs and favourable pricing. SG&A expenses were $82 million, significantly down from $124 million last year.
The operating income surged to $199 million (21.7 per cent of net sales), up from $141 million a year earlier. Adjusted operating income was $209 million or 22.7 per cent of net sales, flat YoY and in line with company guidance.
“The Gildan Sustainable Growth (GSG) strategy continues to drive solid financial performance, as evidenced by our record second quarter results, driven by strong net sales growth of 12 per cent in Activewear,” said Glenn J Chamandy, president and chief executive officer (CEO) at Gildan. “As we navigate through the current fluid operating environment, we are focusing on what we can control, which is allowing us to continue to strengthen our competitive position and drive profitable top line growth. Moreover, our performance reflects the agility and resilience of our low-cost vertically integrated business model which remains the cornerstone of our ability to deliver long-term value for our stakeholders.”
Fibre2Fashion News Desk (SG)
