In spite of global economic uncertainty, Gildan Activewear Inc. has reaffirmed its full-year guidance and posted record financial performance for the second quarter of 2025, citing ongoing momentum from its Gildan Sustainable Growth (GSG) strategy.
Driven mainly by a 12% growth in Activewear sales, net sales for the quarter hit an all-time high of US $ 919 million, up 6.5% year over year. In addition, Gildan reported a record adjusted diluted EPS of US $ 0.97, up 31.1% from the prior year, and an operating margin of 21.7%. US $ 145 million was distributed to shareholders in the form of dividends and share repurchases, while US $ 154 million was free cash flow.
Due to lower manufacturing and raw material costs, Gildan’s second-quarter gross profit increased to US $ 289 million, while its margins improved by 110 basis points to 31.5%. Due in large part to less one-time expenditures associated with proxy elections and leadership transitions, SG&A expenses were significantly lower than they were the previous year. Higher administrative expenses and variable pay were the reasons for the 21% increase in SG&A on an adjusted basis.
Gildan’s strong performance in North American markets and new product innovation, like its Soft Cotton Technology, supported earnings despite a 14.1% reduction in overseas sales and a 23.3% loss in sales of clothing and knickers.
Net sales thus far this year came to US $ 1.63 billion, a 4.6% increase over the first half of 2024. Despite the continued global downturn, US $ 1.47 billion of that was made up of activewear, a 10.6% increase.
President and CEO Glenn J. Chamandy attributed the company’s performance to its low-cost, vertically integrated business model and a strategic emphasis on operational agility. He stated that by focusing on controllable factors in a fluid environment, the company has been able to strengthen its competitive position and drive profitable top-line growth.
