Gildan Activewear Inc. has effectively doubled its industrial scale, with net sales rising by 31.3 per cent to $1.08 billion in Q4, FY25. This surge was primarily catalyzed by the first full month of operations following its $4.4 billion acquisition of HanesBrands Inc., finalized on December 1, 2025. By absorbing the ‘Hanes’ and ‘Bonds’ portfolios, Gildan has transitioned from a wholesale printwear specialist into a retail powerhouse, now projecting 2026 revenues between $6.0 billion and $6.2 billion. This trajectory is supported by a 10 per cent dividend hike and an upgraded synergy target, with management now expecting $250 million in annual cost savings- up from an initial $200 million estimate - by 2028.
Manufacturing synergy and portfolio realignment
To optimize its expanded footprint, Gildan has initiated a formal sale process for HanesBrands’ Australian business, aiming to utilize divestment proceeds to deleverage its balance sheet. The group is concurrently doubling down on its low-cost, vertically integrated model, with plans to break ground on a second major textile facility in Bangladesh by late 2026. This infrastructure investment is designed to support a 5 per cent CAGR in net sales through 2028. Despite a GAAP profit dip to $56.1 million due to one-time transaction costs, adjusted earnings of $0.96 per share outperformed analyst expectations. By joining forces with HanesBrands, we have achieved a scale that distinctly sets us apart in the global basic apparel market, stated Glenn Chamandy, CEO, signaling a robust outlook for the combined entity’s market share.
Founded in 1984 and headquartered in Montreal, Gildan is a leading manufacturer of basic apparel, including activewear, underwear, and socks. Following the 2025 HanesBrands acquisition, the company operates a diverse brand portfolio including Hanes, American Apparel, and Comfort Colors, targeting a $6.2 billion revenue milestone in 2026.
