Gildan shares plunge as clothing maker misses estimates, lowers full-year forecast
Gildan Activewear (GIL-T) lowered its full-year forecast and missed Q3 estimates, citing higher borrowing costs and inflation. Shares fell 25% on the Toronto Stock Exchange. The company reported net sales of US$1.47B, below guidance, and EPS of US$1.54, slightly missing estimates. It now expects revenue of at least US$5.4B and adjusted EPS of US$3.70 for the year, down from previous estimates. The company withdrew its 2026-2028 financial objectives.
How this was made
The 30-second read
Why it matters
The earnings miss and guidance cut triggered a ~25% share price decline, reflecting investor concerns over demand and cost pressures.
Market read
The news directly impacts Gildan's stock and may influence other apparel manufacturers facing similar macro pressures.
What to watch
Potential upside from strong free cash flow and capital return program not fully priced in.
Background
Gildan Activewear reported Q3 results missing estimates and lowered full-year revenue and earnings guidance due to higher borrowing costs, inflation, and demand slowdown.
Market effects
Apparel and consumer discretionary sector faces pressure from higher borrowing costs and inflation, potentially weighing on peers.
Canadian market reacts negatively as Gildan shares plunge, affecting TSX sentiment.
Limited to apparel sector; no broad market impact.
Counterpoint
If the market overreacts to the guidance cut, a bounce could occur on any positive news about cost reductions.
Key entities
- CompanyGildan Activewear Inc.
Canadian clothing maker that reported the earnings miss and guidance cut.
- ExecutiveGlenn Chamandy
CEO of Gildan who commented on the results.
