Operating margins plummeted to 5.1% in 2026Q1 from historical averages exceeding 20%, reflecting severe pressure on the company's core manufacturing profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Jan'23 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Jan'17 | Dec'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 |
|---|
| Sales/Revenue | 4.09B | 3.68B | 3.27B | 3.2B | 3.24B | 2.92B | 1.98B | 2.82B | 2.91B | 2.75B | 2.59B | 2.42B | 2.36B | 2.18B | 1.95B | 1.73B | 1.31B | 1.04B | 1.25B | 964.43M | 773.95M | 653.17M | 532.83M | 466.02M | 378.48M | 320.14M | 305.65M | 227.52M | 141.14M | 86.98M |
| Revenue Growth % | 24.43% | 12.5% | 2.34% | -1.38% | 10.88% | 47.51% | -29.84% | -2.91% | 5.73% | 6.41% | 7.02% | 2.35% | 8.04% | 12.12% | 12.87% | 31.61% | 26.31% | -16.92% | 29.58% | 24.61% | 18.49% | 22.58% | 14.34% | 23.13% | 18.22% | 4.74% | 34.34% | 61.19% | 62.28% | - |
| Cost of Goods Sold | 2.91B | 2.57B | 2.27B | 2.32B | 2.25B | 1.98B | 1.73B | 2.12B | 2.1B | 1.95B | 1.87B | 1.83B | 1.7B | 1.55B | 1.55B | 1.29B | 947.21M | 807.99M | 847.39M | 655.28M | 521.61M | 450.1M | 378.32M | 325.62M | 272.2M | 252.74M | 218.44M | 167.86M | 107.96M | 67.58M |
| COGS % of Revenue | - | 69.82% | 69.31% | 72.46% | 69.37% | 67.83% | 87.43% | 75.05% | 72.29% | 70.87% | 72.16% | 75.77% | 72.09% | 70.97% | 79.67% | 74.64% | 72.23% | 77.82% | 67.81% | 67.94% | 67.4% | 68.91% | 71% | 69.87% | 71.92% | 78.94% | 71.47% | 73.78% | 76.49% | 77.7% |
| Gross Profit | 1.18B | 1.11B | 1B | 880.05M | 992.41M | 940.21M | 249.06M | 704.46M | 805.95M | 801.22M | 719.7M | 585.34M | 658.68M | 634.04M | 396.13M | 437.75M | 364.26M | 230.33M | 402.32M | 309.15M | 252.34M | 203.07M | 154.52M | 140.4M | 106.28M | 67.41M | 87.21M | 59.65M | 33.18M | 19.39M |
| Gross Margin % | 28.93% | 30.18% | 30.69% | 27.54% | 30.63% | 32.17% | 12.57% | 24.95% | 27.71% | 29.13% | 27.84% | 24.23% | 27.91% | 29.03% | 20.33% | 25.36% | 27.77% | 22.18% | 32.19% | 32.06% | 32.6% | 31.09% | 29% | 30.13% | 28.08% | 21.06% | 28.53% | 26.22% | 23.51% | 22.3% |
| Gross Profit Growth % | - | 10.63% | 14.05% | -11.32% | 5.55% | 277.5% | -64.65% | -12.59% | 0.59% | 11.33% | 22.96% | -11.14% | 3.89% | 60.06% | -9.51% | 20.18% | 58.14% | -42.75% | 30.14% | 22.51% | 24.26% | 31.42% | 10.05% | 32.11% | 57.66% | -22.7% | 46.19% | 79.78% | 71.08% | - |
| Operating Expenses | 542.88M | 380.18M | 385.44M | 236.2M | 389.03M | 288.32M | 429.9M | 415.47M | 368.55M | 377.32M | 336.43M | 315.17M | 286.01M | 282.56M | 226.03M | 199.13M | 154.67M | 134.78M | 210.38M | 125.37M | 116.89M | 100.41M | 85.09M | 52.62M | 40.28M | 48.24M | 38.4M | 31.07M | 16.34M | 10.7M |
| OpEx % of Revenue | - | 10.33% | 11.79% | 7.39% | 12.01% | 9.87% | 21.7% | 14.71% | 12.67% | 13.72% | 13.01% | 13.05% | 12.12% | 12.94% | 11.6% | 11.54% | 11.79% | 12.98% | 16.83% | 13% | 15.1% | 15.37% | 15.97% | 11.29% | 10.64% | 15.07% | 12.56% | 13.66% | 11.58% | 12.3% |
| Selling, General & Admin | 515.44M | 380.18M | 390.77M | 330.39M | 326.26M | 314.17M | 272.31M | 340.49M | 368.55M | 377.32M | 336.43M | 315.17M | 286.01M | 282.56M | 226.03M | 199.13M | 154.67M | 134.78M | 151.45M | 110.98M | 84.47M | 74.82M | 62.83M | 52.62M | 40.28M | 48.24M | 32.15M | 26.38M | 13.63M | 9M |
| SG&A % of Revenue | - | 10.33% | 11.95% | 10.34% | 10.07% | 10.75% | 13.74% | 12.06% | 12.67% | 13.72% | 13.01% | 13.05% | 12.12% | 12.94% | 11.6% | 11.54% | 11.79% | 12.98% | 12.12% | 11.51% | 10.91% | 11.45% | 11.79% | 11.29% | 10.64% | 15.07% | 10.52% | 11.59% | 9.66% | 10.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | -5.33M | -94.19M | 62.77M | -25.85M | 157.6M | 74.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 639.92M | 730.15M | 618.24M | 643.85M | 603.38M | 651.89M | -180.84M | 288.99M | 403.18M | 401M | 371.52M | 256.57M | 369.42M | 342.69M | 155.13M | 230.15M | 200.88M | 89.35M | 186.44M | 170.16M | 115.05M | 102.66M | 69.43M | 87.78M | 65.99M | 19.17M | 48.81M | 28.58M | 16.84M | 8.7M |
| Operating Margin % | 15.65% | 19.84% | 18.9% | 20.15% | 18.62% | 22.31% | -9.13% | 10.23% | 13.86% | 14.58% | 14.37% | 10.62% | 15.65% | 15.69% | 7.96% | 13.33% | 15.32% | 8.61% | 14.92% | 17.64% | 14.87% | 15.72% | 13.03% | 18.84% | 17.44% | 5.99% | 15.97% | 12.56% | 11.93% | 10% |
| Operating Income Growth % | - | 18.1% | -3.98% | 6.71% | -7.44% | 460.47% | -162.58% | -28.32% | 0.54% | 7.93% | 44.8% | -30.55% | 7.8% | 120.91% | -32.6% | 14.57% | 124.82% | -52.08% | 9.57% | 47.9% | 12.07% | 47.87% | -20.9% | 33.01% | 244.32% | -60.73% | 70.79% | 69.69% | 93.63% | - |
| EBITDA | 809.24M | 887.67M | 748.06M | 765.5M | 728.31M | 787.29M | -33.65M | 445.79M | 553.48M | 569.31M | 510.76M | 373.2M | 465.04M | 437.96M | 249.7M | 306.54M | 270.07M | 152.32M | 245.38M | 212.43M | 147.47M | 128.25M | 91.68M | 105.24M | 77.08M | 29.44M | 55.05M | 33.27M | 19.55M | 10.4M |
| EBITDA Margin % | 19.79% | 24.13% | 22.87% | 23.95% | 22.48% | 26.94% | -1.7% | 15.79% | 19.03% | 20.7% | 19.76% | 15.45% | 19.71% | 20.05% | 12.82% | 17.76% | 20.59% | 14.67% | 19.63% | 22.03% | 19.05% | 19.64% | 17.21% | 22.58% | 20.37% | 9.2% | 18.01% | 14.62% | 13.85% | 11.95% |
| EBITDA Growth % | 5.32% | 18.66% | -2.28% | 5.11% | -7.49% | 2439.44% | -107.55% | -19.46% | -2.78% | 11.46% | 36.86% | -19.75% | 6.18% | 75.4% | -18.54% | 13.5% | 77.31% | -37.92% | 15.51% | 44.05% | 14.98% | 39.89% | -12.89% | 36.54% | 161.78% | -46.51% | 65.45% | 70.22% | 88.01% | - |
| D&A (Non-Cash Add-back) | 169.32M | 157.51M | 129.82M | 121.64M | 124.93M | 135.4M | 147.19M | 156.79M | 150.3M | 168.3M | 139.24M | 116.63M | 95.62M | 95.28M | 94.57M | 76.39M | 69.2M | 62.97M | 58.93M | 42.27M | 32.41M | 25.59M | 22.25M | 17.46M | 11.08M | 10.28M | 6.24M | 4.7M | 2.71M | 1.7M |
| EBIT | 462.08M | 601.64M | 599.54M | 621.39M | 595.19M | 642.28M | -195.7M | 281.91M | 437.41M | 423.9M | 365.02M | 297.34M | 368.91M | 334.93M | 151.77M | 218.45M | 198.28M | 92.59M | 187.97M | 159.39M | 135.46M | 102.66M | 69.43M | 65.29M | 55.58M | 19.17M | 48.81M | 28.58M | 16.64M | 8.5M |
| Net Interest Income | -157.73M | -122.2M | -107.7M | -72.98M | -33.75M | -26.31M | -48.12M | -39.97M | -28.47M | -28.37M | -17.41M | -12.34M | -5.13M | -12.53M | -13.67M | -5.35M | -1.99M | -3.26M | -7.25M | -5.49M | -3.14M | -4.86M | -6.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 75.77K | 81.17K | 87.94K | 75.94K | 515.37K | 1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 157.73M | 122.2M | 107.7M | 72.98M | 33.75M | 26.31M | 48.12M | 39.97M | 28.47M | 28.37M | 17.41M | 12.34M | 5.13M | 12.53M | 13.67M | 5.43M | 2.07M | 3.35M | 7.32M | 6M | 4.64M | 4.86M | 6.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -335.57M | -250.71M | -104.15M | -79.67M | -36.96M | -27.33M | -48.53M | -39.17M | -31.05M | -24.19M | -19.69M | 28.43M | 9.07M | -11.97M | -11M | -5.64M | -4.54M | 194K | -11.23M | -28.45M | -3.33M | -10.51M | -6.16M | -6.41M | -18.88M | -18.92M | -8.37M | -7.19M | -3.81M | -2.2M |
| Pretax Income | 304.35M | 479.44M | 514.09M | 564.18M | 566.43M | 624.56M | -229.37M | 249.82M | 372.13M | 376.82M | 351.84M | 241.2M | 366.52M | 330.72M | 144.13M | 224.16M | 196.34M | 89.54M | 178.99M | 125.2M | 111.72M | 87.3M | 63.27M | 63.32M | 46.5M | 246.64K | 40.44M | 21.38M | 13.03M | 6.5M |
| Pretax Margin % | 7.44% | 13.03% | 15.72% | 17.65% | 17.48% | 21.37% | -11.58% | 8.85% | 12.79% | 13.7% | 13.61% | 9.99% | 15.53% | 15.14% | 7.4% | 12.99% | 14.97% | 8.62% | 14.32% | 12.98% | 14.44% | 13.37% | 11.87% | 13.59% | 12.29% | 0.08% | 13.23% | 9.4% | 9.23% | 7.47% |
| Income Tax | 49.29M | 78.61M | 113.22M | 30.6M | 24.89M | 17.38M | -4.09M | -9.98M | 21.36M | 14.48M | 5.2M | 3.9M | 6.97M | 10.54M | -4.34M | -15.74M | -1.9M | -5.79M | 34.4M | -4.82M | 4.79M | 1.35M | 3.07M | 6.17M | 4.61M | -270.77K | 4.09M | 4.9M | 4.41M | 2.4M |
| Effective Tax Rate % | 16.2% | 16.4% | 22.02% | 5.42% | 4.39% | 2.78% | 1.78% | -4% | 5.74% | 3.84% | 1.48% | 1.62% | 1.9% | 3.19% | -3.01% | -7.02% | -0.97% | -6.46% | 19.22% | -3.85% | 4.28% | 1.55% | 4.86% | 9.74% | 9.91% | -109.78% | 10.12% | 22.9% | 33.85% | 36.92% |
| Net Income | 249.24M | 405.86M | 400.87M | 533.58M | 541.54M | 607.18M | -225.28M | 259.81M | 350.77M | 362.33M | 346.64M | 237.3M | 359.55M | 320.18M | 148.46M | 239.9M | 198.25M | 95.33M | 144.59M | 130.02M | 106.93M | 85.95M | 60.19M | 57.15M | 41.9M | 517.41K | 36.35M | 16.49M | 8.62M | 4.1M |
| Net Margin % | 6.1% | 11.03% | 12.26% | 16.7% | 16.71% | 20.78% | -11.37% | 9.2% | 12.06% | 13.17% | 13.41% | 9.82% | 15.24% | 14.66% | 7.62% | 13.9% | 15.12% | 9.18% | 11.57% | 13.48% | 13.82% | 13.16% | 11.3% | 12.26% | 11.07% | 0.16% | 11.89% | 7.25% | 6.11% | 4.71% |
| Net Income Growth % | -38.74% | 1.25% | -24.87% | -1.47% | -10.81% | 369.52% | -186.71% | -25.93% | -3.19% | 4.53% | 46.08% | -34% | 12.3% | 115.66% | -38.12% | 21.01% | 107.96% | -34.07% | 11.21% | 21.59% | 24.41% | 42.8% | 5.33% | 36.4% | 7997.28% | -98.58% | 120.45% | 91.24% | 110.32% | - |
| Net Income (Continuing) | 255.06M | 400.83M | 400.87M | 533.58M | 541.54M | 607.18M | -225.28M | 259.81M | 350.77M | 362.33M | 346.64M | 280.83M | 359.55M | 320.18M | 148.46M | 234.16M | 198.25M | 95.33M | 146.58M | 130.02M | 106.93M | 85.95M | 60.19M | 53.09M | 42.44M | 517.34K | 36.35M | 16.49M | 8.62M | 4.1M |
| Discontinued Operations | 0 | 5.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.56M | 11.06M | 7.27M | 7.16M | 6.93M | 5.66M | 5.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.35 | 2.65 | 2.46 | 3.03 | 2.93 | 3.07 | -1.14 | 1.30 | 1.66 | 1.61 | 1.47 | 0.97 | 1.46 | 1.31 | 0.61 | 0.98 | 0.82 | 0.40 | 0.60 | 0.54 | 0.44 | 0.36 | 0.25 | 0.22 | 0.18 | 0.00 | 0.16 | 0.09 | 0.07 | 0.04 |
| EPS Growth % | -33.98% | 7.72% | -18.81% | 3.41% | -4.56% | 369.3% | -187.69% | -21.69% | 3.11% | 9.52% | 51.55% | -33.56% | 11.45% | 114.75% | -37.76% | 19.51% | 105% | -33.33% | 11.11% | 22.73% | 22.22% | 44% | 13.64% | 22.22% | - | -98.5% | 88.01% | 28.55% | 88.07% | - |
| EPS (Basic) | - | 2.65 | 2.46 | 3.03 | 2.94 | 3.08 | -1.14 | 1.30 | 1.66 | 1.62 | 1.47 | 0.98 | 1.48 | 1.32 | 0.61 | 0.99 | 0.82 | 0.40 | 0.61 | 0.54 | 0.44 | 0.36 | 0.26 | 0.23 | 0.18 | 0.00 | 0.16 | 0.09 | 0.07 | 0.04 |
| Diluted Shares Outstanding | 185.16M | 153.07M | 163.18M | 176.22M | 184.53M | 197.59M | 198.36M | 204.61M | 211.31M | 225.05M | 235.81M | 244.32M | 246.36M | 245.42M | 244.14M | 244.57M | 243.96M | 242.87M | 243.24M | 243.08M | 243.24M | 239.18M | 237.56M | 239.11M | 238.44M | 217.56M | 236.9M | 193.84M | 130.15M | 116.59M |
| Basic Shares Outstanding | 185.16M | 153M | 162.93M | 176.1M | 184.13M | 197.01M | 198.36M | 204.16M | 211.31M | 223.66M | 235.35M | 242.5M | 243.53M | 242.91M | 242.98M | 243.05M | 242.32M | 241.62M | 240.96M | 240.68M | 240.5M | 239.18M | 235.23M | 233.85M | 231.28M | 217.56M | 222.1M | 185.65M | 127.74M | 114.53M |
| Dividend Payout Ratio | - | 33.9% | 33.3% | 24.7% | 22.86% | 14.9% | - | 43.46% | 26.96% | 23.41% | 21.46% | 26.85% | 14.79% | 13.66% | 24.66% | 11.46% | - | - | - | - | - | - | - | - | - | - | - | - | 3.49% | - |
Manufacturing cost volatility
As reported in recent financial statements, Gildan's revenue growth reached 63.8% in 2026Q1, yet this follows a period of inconsistent performance where quarterly growth rates fluctuated significantly, suggesting that the company's top-line trajectory remains highly sensitive to wholesale inventory cycles and broader consumer demand shifts.
The sharp revenue spike in the most recent quarter appears to be an outlier compared to the low-single-digit growth observed throughout 2024 and 2025. Investors should monitor whether this acceleration represents a sustainable recovery in the printwear channel or merely a temporary restocking event by distributors.
Based on the company's latest income statement, gross margins contracted to 23.9% in 2026Q1, a notable decline from the 30-33% range maintained in previous periods, which indicates potential challenges in managing input costs or maintaining pricing power within the competitive wholesale apparel market.
The erosion of gross margin suggests that the company's vertical integration may be facing headwinds from rising raw material costs or energy expenses. If this compression persists, it may signal that Gildan's low-cost producer moat is being tested by inflationary pressures that cannot be fully passed to customers.
According to the provided data, operating margins plummeted to 5.1% in 2026Q1, down from historical averages exceeding 20%, demonstrating that the company's high fixed-cost manufacturing model is currently failing to achieve the necessary scale to maintain profitability during periods of revenue volatility.
The sharp drop in operating income relative to gross profit highlights the danger of a high fixed-cost structure when volume growth is inconsistent. This suggests that management's ability to control SG&A expenses is currently insufficient to offset the impact of declining gross margins on the bottom line.
Financial filings reveal that Gildan swung to a net loss of $65.8 million in 2026Q1, a stark reversal from the consistent profitability seen in 2024 and 2025, which warrants further investigation into whether this is driven by one-time restructuring charges or fundamental operational deterioration.
The transition from positive net income to a loss suggests that non-operating items or significant cost spikes are impacting the bottom line more heavily than in previous quarters. Analysts should scrutinize the impact of stock-based compensation and potential restructuring costs to determine the true underlying earnings power.
While Gildan has historically relied on its CAFTA-DR manufacturing footprint for a cost advantage, the recent collapse in operating margins to 5.1% suggests that the competitive benefits of this vertical integration may be diminishing in the face of current macroeconomic and operational headwinds.
Short-sellers may focus on the potential for permanent margin erosion if the company's reliance on specific geographic hubs becomes a liability rather than an asset. The recent governance instability further complicates the narrative, as it may hinder the strategic agility required to navigate these structural challenges.
Quick answers to the most common questions about buying GIL stock.
For fiscal year 2025, Gildan Activewear Inc. (GIL) reported total revenue of $3.68B. This represents a 4130.3% increase compared to $87.0M in 1997.
Gildan Activewear Inc. (GIL) is profitable, generating $405.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.0%.
Gildan Activewear Inc. (GIL) reported an operating income of $730.2M, resulting in an operating profit margin of 19.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Gildan Activewear Inc. (GIL) generated $1.11B in gross profit for the year, representing a gross profit margin of 30.2%. This demonstrates the company's core pricing power and production efficiency.