Gildan (GIL) — Q3 miss + FY guide cut; ~19% crash after outlook reset

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Quick version: 60-second Short

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The short version: a guide cut, then a 19% wipe

Gildan Activewear (TSX/NYSE: GIL), the Montreal-based maker of blank tees, underwear and socks — now combined with HanesBrands — missed its own third-quarter sales target and cut full-year 2026 guidance hard. Motley Fool Canada reported the shares crashed nearly 19% to about C$49.04 on the November 5–6 session after the release.

On the November 3 TSX screener (still pre-crash), Gildan closed at CA$57.27, with a market cap of about CA$10.6 billion, down roughly 31% over twelve months and 4.5% over the prior month. Trailing earnings look meaningless after Hanes purchase accounting (about 78x on thin GAAP EPS); forward P/E is about 8x, the cheapest reading in our peer set. Indicated dividend yield is about 2.2%. So the question is whether the new, lower earnings power is already in the price — or whether soft apparel demand keeps the multiple cheap. Below we go through the print, the guide cut, and how Gildan compares with Canada Goose, Saputo, Lassonde, Aritzia and Dollarama on size, returns, valuation, dividends and analyst targets.

What happened: Q3 miss and a sharp FY guide cut

Gildan reported on November 5, 2026, for the quarter ended September 27. Results are in U.S. dollars and on a continuing-operations basis (Hanes Australia was held for sale and closed October 26).

Headline numbers:

• Net sales US$1.47 billion, up 61.1% year over year on the Hanes deal, but well short of prior guide of about US$1.65 billion,
• Adjusted diluted EPS US$1.54 (+54%); GAAP diluted EPS from continuing ops US$1.37,
• Adjusted operating margin 27.0% (ahead of the ~26% guide for the quarter),
• Free cash flow US$606 million in Q3 and about US$622 million year to date.

Management pointed to soft demand in both Wholesale and Retail — about US$100 million of greater-than-expected demand softness versus the prior outlook — plus product-availability and service constraints (mainly Retail), mix, and lower net selling prices. Versus Hanes-inclusive pro forma prior-year sales, both channels were down.

FY26 outlook cut and long-term roadmap withdrawn

Full-year 2026 guidance was reset:

Metric	Prior guide	New guide
Revenue	US$6.0–6.2B	US$5.4–5.5B
Adj. diluted EPS	US$4.65–4.75	US$3.70–3.80
Free cash flow	~US$1.0B	US$700–750M
Adj. operating margin	~21.8%	~20%

At the midpoints, the adj EPS guide is down about 20%. Gildan also withdrew its previously communicated 2026–2028 objectives and said it expects to provide an updated long-term outlook at an Investor Day in spring 2027.

Not everything moved the wrong way. Hanes synergies of about US$100 million in 2026 remain on track, with a US$250 million annual run-rate targeted by the end of 2028. The Hanes Australia sale closed October 26 for about A$700 million / US$490 million, with proceeds used to repay debt. Net debt was about US$4.14 billion (leverage 2.7x). A new NCIB for up to 5% of shares (~9.26 million) starts November 9, 2026, and the board declared a quarterly dividend of US$0.249 (record November 25, pay December 21).

Business overview: Gildan vs consumer peers

Gildan manufactures everyday basic apparel — activewear, underwear, socks and intimates — sold through wholesale distributors, screenprinters and retailers, now including Hanes brand strength in Retail. On the TSX screener it sits in Consumer non-durables.

Liquid same-sector apparel names are thin: Canada Goose (GOOS) is the other apparel peer of meaningful size. We also include Saputo (SAP) and Lassonde (LAS.A) as liquid same-sector Consumer non-durables names (food/beverage — not apparel; size and valuation context). Closest-sector exception: Aritzia (ATZ) and Dollarama (DOL) from Retail trade, for apparel and discretionary consumer comps. Tiny same-sector names were left out.

Overview

Company (Ticker)	Price	Market cap	Revenue (LTM)	Net income (LTM)
Gildan (GIL)	$57.27	$10.6B	$6.54B	$84M
Canada Goose (GOOS)	$11.63	$1.11B	$1.54B	$57M
Saputo (SAP)	$41.23	$16.3B	$18.2B	$510M
Lassonde (LAS.A)	$260.00	$1.77B	$2.89B	$155M
Aritzia (ATZ)	$150.86	$17.1B	$4.35B	$592M
Dollarama (DOL)	$212.00	$56.9B	$7.88B	$1.37B
Average (incl. GIL)	—	$17.3B	$6.90B	$461M

Source: TSX screener (November 3, 2026, tsx-2026-11-03.csv) · CAD · LTM = last 12 months. Average includes GIL; blank cells skipped.

Performance

Company (Ticker)	1M	3M	6M	1Y	5Y	10Y
Gildan (GIL)	−4.5%	−26.6%	−31.3%	−30.6%	+22.2%	+69.0%
Canada Goose (GOOS)	+4.9%	−7.0%	−26.7%	−39.7%	−75.4%	−51.3%
Saputo (SAP)	+7.5%	+4.0%	−0.3%	+23.6%	+37.3%	−14.3%
Lassonde (LAS.A)	+12.0%	+18.2%	+16.6%	+22.8%	+51.9%	+26.1%
Aritzia (ATZ)	+23.9%	+5.6%	+5.4%	+56.5%	+205%	+750%
Dollarama (DOL)	+15.6%	+10.6%	+21.9%	+17.0%	+276%	+529%
Average (incl. GIL)	+9.9%	+0.8%	−2.4%	+8.3%	+86.1%	+218%

Source: TSX screener (November 3, 2026). Average includes GIL; blank cells skipped. Price change by window.

Valuation

Company (Ticker)	P/E	Fwd P/E	PEG	P/S	P/B	P/FCF	Price/Cash
Gildan (GIL)	—	7.93	—	1.57	2.24	15.26	27.86
Canada Goose (GOOS)	21.13	12.40	1.06	0.71	2.16	12.56	5.47
Saputo (SAP)	33.29	19.89	—	0.90	2.32	16.36	34.19
Lassonde (LAS.A)	11.48	—	0.33	0.59	1.46	7.69	254
Aritzia (ATZ)	30.42	26.42	0.29	4.25	11.52	26.92	33.95
Dollarama (DOL)	42.51	39.62	3.95	7.15	38.64	38.65	120
Average (incl. GIL)	27.76	21.25	1.41	2.53	9.72	19.57	79.23

Source: TSX screener (November 3, 2026). Average includes GIL; blank cells skipped. Highlighted = lowest (cheapest) positive value per column.

Dividends

Company (Ticker)	Dividend / share	Yield	Payout ratio
Gildan (GIL)	$1.27	2.20%	—
Canada Goose (GOOS)	—	—	—
Saputo (SAP)	$0.79	2.04%	64.2%
Lassonde (LAS.A)	$4.40	1.92%	20.8%
Aritzia (ATZ)	—	—	—
Dollarama (DOL)	$0.42	0.23%	9.0%
Average (incl. GIL)	$1.72	1.60%	31.3%

Source: TSX screener (November 3, 2026). Average includes GIL; blank cells skipped. Yield = indicated.

Analyst

Company (Ticker)	Rating	Price	Target 1Y	Upside	Analysts
Gildan (GIL)	Strong buy	$57.27	$65.20	+13.8%	5
Canada Goose (GOOS)	Neutral	$11.63	$13.07	+12.4%	12
Saputo (SAP)	Buy	$41.23	$46.55	+12.9%	11
Lassonde (LAS.A)	Buy	$260.00	$282.00	+8.5%	3
Aritzia (ATZ)	Strong buy	$150.86	$187.87	+24.5%	16
Dollarama (DOL)	Buy	$212.00	$209.29	−1.3%	17
Average (incl. GIL)	—	—	—	+11.8%	—

Rating & price: TSX screener (November 3, 2026). Target 1Y: stockanalysis.com / S&P Global consensus pulled 2026-11-07 ~05:15 America/Toronto unless noted. GIL: S&P average still ~C$104.49 (12 analysts) looks stale vs Nov 6 post-print cuts; table uses mean of 5 named Nov 6 broker targets (TD Cowen C$69.16 Buy, RBC C$70.57 Buy, Stifel C$77.62 Buy, Scotiabank C$55.04 Hold/downgrade, UBS C$53.63 Hold/downgrade) = C$65.20. GOOS C$13.07 (12). SAP C$46.55 (11). ATZ C$187.87 (16). DOL C$209.29 (17). LAS.A C$282.00 (~3 TipRanks/WebSearch Nov 2026; thin coverage). Upside = target ÷ price − 1. Thin coverage (<5 analysts): LAS.A.

Gildan is mid-cap versus Dollarama and Aritzia. Trailing net income is thin (~C$84 million) after Hanes accounting — which is why we lean on forward multiples rather than trailing P/E.

Performance: apparel fade vs retail strength

Over twelve months Gildan (−31%) and Goose (−40%) lag badly, while Aritzia (+56%) and Dollarama (+17%) lead. Saputo and Lassonde were both up low-to-mid twenties. The one-month screen (still pre-crash) shows Gildan −4.5% versus Aritzia +24% and Dollarama +16%. The long fade looks apparel-specific, not a broad consumer wipeout — and the November 5–6 crash sits on top of that fade.

Valuation: cheapest on forward earnings

Forward P/E of about 8x is the lowest in the set (group average near 21x). Trailing P/E is blanked as not meaningful. On sales Gildan is about 1.6x — richer than Goose and Saputo, far cheaper than Aritzia or Dollarama. P/FCF ~15x sits mid-pack. Book value ~2.2x lines up with Goose and Saputo, nowhere near Aritzia (~11x) or Dollarama (~39x). After the guide cut, the forward multiple is the cheap side of this peer set — if the new guidance holds.

Dividends: the income edge vs non-payers

Gildan’s indicated yield of about 2.2% (≈C$1.27 annual DPS on the screen) is the income edge versus Goose and Aritzia, which pay nothing, and well above Dollarama’s token yield. Saputo (~2.0%) and Lassonde (~1.9%) are close peers on yield. The payout ratio on thin GAAP earnings looks elevated, so treat that print carefully — the cash dividend itself was just reaffirmed at US$0.249 a quarter.

Analyst ratings: street resetting after the print

The screener still shows a Strong buy rating, but named houses cut targets on November 6. The mean of five fresh cuts (TD, RBC, Stifel Buys; Scotia and UBS Holds) is about C$65. That still sits above the crash tape near C$49, but well below the older S&P consensus (~C$104 from 12 analysts) that had not fully refreshed as of November 7. In this peer set, Aritzia shows the most room to its average target; Dollarama’s average target sits near the current price.

Why it matters

Gildan’s story used to be a clean blank-apparel compounder. Now it is a post-Hanes integration story with soft apparel demand, a cut guide, and no long-term roadmap until spring 2027. The crash asks whether the new, lower earnings power is already priced at about 8x forward earnings.

Bull case

1. Hanes synergies of about US$100 million this year are on track, with a US$250 million run-rate by 2028.
2. Free cash flow was still strong in the quarter; the Australia sale cuts debt; buybacks are restarting under a new NCIB.
3. After a ~19% wipe, the forward multiple is the cheapest in this peer set, and fresh targets still sit above the crash price.

Bear case

1. Soft demand hit both Wholesale and Retail, and management expects that softness to persist into the fourth quarter.
2. Full-year free cash flow guidance was cut by roughly US$250–300 million, and the long-term roadmap was withdrawn.
3. Leverage is about 2.7x after the deal — above the company’s own 1.5–2.5 target band — until debt comes down. Apparel multiples can stay cheap if spending on basics keeps fading.

What to watch

1. Fourth-quarter demand and whether Wholesale and Retail stabilize.
2. Delivery of the US$100 million of 2026 Hanes synergies.
3. Buyback pace under the new NCIB and the path back inside the leverage target.
4. The spring 2027 Investor Day — the next real long-term roadmap.

Chapters

0:00 Hook — 19% crash after the guide cut
0:22 What happened — Q3 print
1:12 FY guide cut + roadmap withdrawn
2:32 Overview vs peers
3:02 Performance
3:32 Valuation
4:13 Dividends
4:40 Analyst targets
5:12 Why it matters / bull / bear
6:23 What to watch + close

Data notes

• Screener: tsx-2026-11-03.csv (2,569 rows). GIL present. Mac offline Saturday 2026-11-07 — no Saturday ingest; peer tables use this pre-crash merge (GIL C$57.27). Headline crash ~19% to C$49.04 is from Motley Fool Canada (Nov 6) and is used in the title, hook and thumbnail; it is not the screener close.
• Peer set: GIL, GOOS, SAP, LAS.A, ATZ, DOL. Closest-sector note: ATZ and DOL are Retail trade (apparel/discretionary); SAP and LAS.A are same-sector food/beverage for liquid Consumer non-durables context.
• GIL trailing P/E blanked as n/m (Hanes purchase accounting / thin GAAP EPS). Forward P/E ~7.9 used instead.
• Targets: stockanalysis.com / S&P Global pulled 2026-11-07 ~05:15 America/Toronto, except GIL table uses mean of five named Nov 6 post-print cuts (C$65.20) because the broader S&P average (~C$104.49, 12) looked stale. LAS.A thin coverage (~3).

Sources

• Gildan Activewear Inc., Q3 2026 earnings press release, November 5, 2026: https://gildancorp.com/media/uploads/news/2026-11/bgildan_q3_2026_earnings_press_release.pdf
• Motley Fool Canada, “TSX Today… November 6,” November 6, 2026 (≈19% to C$49.04): https://www.fool.ca/2026/11/06/tsx-today-what-to-watch-for-in-stocks-on-friday-november-6/
• stockanalysis.com / S&P Global Market Intelligence analyst consensus pages for GIL, GOOS, SAP, ATZ, DOL (pulled 2026-11-07); TipRanks/WebSearch for LAS.A (~C$282)
• TSX screener merge tsx-2026-11-03.csv (2,569 rows)

Media credits

Logo: Gildan wordmark (“GILDAN LOGO blue.png” / related Gildan marks, Wikimedia Commons; trademark of Gildan Activewear Inc.; used for identification on white plates).

Wikimedia Commons photos (illustrative apparel/textile manufacturing — not Gildan facilities unless noted):

• “T-Shirt Quality Checking in a RMG factory of Bangladesh” — garment QC / blank-tee production context (also thumbnail photo)
• “Textile manufacturing in Meerut, India”
• “Rahmania Textile Mills, in Faisalabad”
• “Textile mill in Lowell, Massachusetts, January 1941”
• “T-Shirt Iron Section”
• “Forbes Textile Mill NHS”
• “WM2006wikiashirts” — stack of blank T-shirts
• “Garment factory in Bangladesh Women working”

No AI-generated images were used in this video.