Gildan sells HanesBrands Australia for A$700M as Q2 sales jump 72%
What's the deal? GildanDealroom has a profile for this one. Try Dealroom → Activewear said on July 30 it will sell HanesBrandsDealroom has a profile for this one. Try Dealroom → Australia to BBFit Investments for an enterprise value of roughly A$700 million (about $490 million), part of its ongoing integration of the HanesBrands business. The transaction is expected to close in the second half of 2026.
Why now? Gildan is folding in HanesBrands, and shedding the Australian unit lets it use the proceeds to pay down debt. That accelerates its return to the midpoint of its target leverage framework of 1.5x to 2.5x net debt to proforma adjusted EBITDA.
By the numbers: Second quarter net sales from continuing operations reached $1.58 billion, up 72.3% year over year, with an operating margin of 11.1%. GAAP diluted earnings per share came in at $0.49, and free cash flow hit $326 million.
What's the endgame? Gildan says most of its 2026 synergy-capture initiatives are already implemented, with roughly $100 million in synergies expected in 2026 and about $250 million in annual run-rate cost synergies over the following three years. It also expects $220 million in tariff refunds in 2026, part of which it will reinvest in brand building, marketing, and product innovation.
The outlook: The company now expects full-year revenue at the low end of its $6.0 billion to $6.2 billion range, an adjusted operating margin near 21.8%, and adjusted diluted EPS of $4.65 to $4.75 — a rise of roughly 32.5% to 35%. Free cash flow is projected at about $1.0 billion.
The signal: The divestiture shows Gildan tightening its portfolio as it absorbs a major acquisition, prioritising debt reduction and core operations. "Control what we can control, execute our strategy, capture the significant opportunities ahead and drive profitable growth," said chief executive officer Glenn J. Chamandy.
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