Gildan Activewear Inc. (NYSE:GIL) is one of the best Canadian value stocks to buy. On February 26, Gildan Activewear reported record annual revenue of ~$3.6 billion for 2025, supported by a strong adjusted operating margin of 21.5%. Full-year adjusted diluted EPS rose 17% to $3.51. The company’s Q4 sales from continuing operations jumped 31.3% to $1.078 billion. This was fueled by a 10.3% increase in Activewear sales and a massive 171% surge in Innerwear sales following the acquisition of Hanes brands.
The integration of Hanes brands is a central part of Gildan’s strategy and is reportedly progressing ahead of schedule. The company increased its expected cost synergies to $250 million over the next 3 years through manufacturing footprint optimization and IT standardization. For 2026, Gildan Activewear forecasts revenue between $6 billion and $6.2 billion and adjusted diluted EPS in the range of $4.20 to $4.40. The company also plans to expand its manufacturing complex in Bangladesh to support growth through 2028.
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Despite the positive outlook, the company faces some short-term hurdles, including a proactive inventory destocking plan that will likely impact sales in H1 2026. This move is intended to manage capacity as Gildan Activewear Inc. (NYSE:GIL) closes two Hanes facilities.
Gildan Activewear Inc. (NYSE:GIL) manufactures and sells various apparel products. The company provides various activewear products as well as hosiery products.
While we acknowledge the potential of GIL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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