Gildan raises 2026 outlook despite $50M quarterly loss

The Montreal apparel maker posted a sharp profit decline but upgraded its full-year guidance, signaling confidence in a turnaround despite the hit to bottom-line results.

By Handelsavisen Newsroom · Automated 2026-07-30 11:23 UTC · 1 min read

Gildan Activewear Inc. reported a US$50-million loss for the latest quarter, a stark reversal from the US$137.9-million profit recorded in the same period a year ago.

Despite the significant deterioration in quarterly earnings, the company simultaneously raised its full-year 2026 guidance, indicating management’s belief that the current headwinds are temporary and that underlying demand remains resilient.

The divergence between the quarterly loss and the optimistic forward outlook suggests that the recent results were likely impacted by one-off costs or specific operational challenges rather than a structural decline in the business.

Investors will be looking to the updated guidance for clues on margin recovery and volume trends in the coming quarters.

In a related strategic move, Gildan announced it has reached an agreement to sell HanesBrands Australia.

The divestiture marks a step in the company’s portfolio optimization efforts, allowing it to focus resources on core markets and higher-growth opportunities.