Q2/26 Preview: Results Should Do Some Of The Talking In Our View

研报英文原文证据摘录

Q2/26 Preview: Results Should Do Some Of The Talking In Our View

Consumer Discretionary

Gildan Activewear Inc.

TD SECURITIES INC. - CANADA EARNINGS UPDATE

July 7, 2026

Price: $51.50 (07/7/2026) Q2/26 Preview: Results Should Do Some Of

Price Target: $80.00 The Talking In Our View

BUY (1)

Brian Morrison, CA^ THE TD COWEN INSIGHT

416 944 6868

A short report has weighed on Gildan's shares in recent weeks. Numerous discussions with

brian.morrison@tdsecurities.com

industry contacts/management after its release explain some of the findings and largely dispel

Catherine Sung^ its conclusions. With the integration of HBI assets into Gildan in mid-Q2/26, we believe we

416 982 6833 should see a material sequential improvement in financial results, FCF, and in turn DSO ratio.

catherine.sung@tdsecurities.com

Key Data Impact: Neutral to Investment Recommendation

Symbol NYSE: GIL

Q2/26 Preview (July 30): The integration of HBI's textile facilities into Gildan's low-cost

12-Month Div (Est.): $1.00

operations was complete in mid-Q2/26. This should alleviate capacity constraints endured in

Beta: 1.12

Q1/26 for a portion of Q2/26, leading to a material sequential improvement in Q2/26 sales,

12-Month Total

57.3% operating margin/synergies, EPS, and FCF. With Gildan reiterating its 2026 guidance mid-Return:

52-Week Range: $72.49-$49.12 June, we are comfortable it meets its Q2/26 financial outlook, and in turn lowers the post-HBI

Market Cap: $9.5B acquisition spike in DSOs. Our Q2/26E EPS of $1.10 is in line with consensus of $1.11. (Q2/25:

Net Debt (MM): $4,760.2 $0.97).

Dil. Shares Out (MM): 185.2

Rising DSO Trends: Gildan has a rising DSO trend post-COVID. We believe this can be justified