Gildan Activewear's Q2 sales beats, adjusted EPS rises
Overview
Gildan Q2 2025 net sales rise 6.5%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 2025 beats consensus, reflecting strong operational performance
Company reaffirms full-year 2025 guidance, narrows adjusted EPS range
Outlook
Gildan reaffirms full-year 2025 guidance, narrows adj EPS to $3.40-$3.56
Company expects 2025 revenue growth up mid-single digits
Full-year adjusted operating margin to rise by ~50 basis points
Capex to be approximately 5% of sales in 2025
Free cash flow to exceed $450 mln in 2025
Q3 net sales to rise low single digits year over year
Q3 adjusted operating margin to match Q2 2025 level
Result Drivers
ACTIVEWEAR GROWTH - Activewear sales rose 12% driven by higher volumes, favorable product mix, and higher net prices
INTERNATIONAL SALES DECLINE - International sales fell 14.1% due to demand softness in certain markets
GROSS MARGIN IMPROVEMENT - Gross margin improved by 110 basis points due to lower raw material and manufacturing costs and favorable pricing
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $918.50 mln | $907.10 mln (5 Analysts) |
Q2 Adjusted EPS | Beat | $0.97 | $0.95 (7 Analysts) |
Q2 EPS |
| $0.91 |
|
Q2 Adjusted Net Income |
| $145.90 mln |
|
Q2 Adjusted EBITDA |
| $246.30 mln |
|
Q2 Adjusted EBIT |
| $208.70 mln |
|
Q2 Adjusted Gross Profit |
| $289.40 mln |
|
Q2 Basic EPS |
| $0.91 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nGNX9Qjhz7
