GILA quarter with some flex
Gildan came out swinging with first-quarter net sales of $1.17 billion, up 63.8% from a year ago. That’s not a typo — the HanesBrands deal is now fully baked into the company’s financials, so this is the first quarter where you’re seeing the combined business in all its glory.
The catch: margins were a mixed bag
The top line looked great, but GAAP diluted loss per share from continuing operations came in at $0.30, while adjusted diluted EPS was $0.43. Operating margin was basically flat at (0.1)%, though adjusted operating margin landed at a much healthier 14.3%.
Why investors should care
The big storyline here isn’t just revenue. It’s whether Gildan can turn the HanesBrands integration into a profit machine instead of a very expensive group project. Management says integration is on track, and the company still expects about $100 million in synergies in 2026 and around $250 million in annual run-rate cost synergies over the next three years.
The vibe check
Keeping full-year 2026 guidance is the quiet-but-important part. When a company posts a monster revenue jump and still doesn’t have to sandbag its outlook, the market usually pays attention. The next question is whether those synergies show up fast enough to make the margin math less awkward.
Big picture: Gildan is now wearing a bigger-company cape, and investors are waiting to see if the integration turns into extra profit instead of just extra complexity.