Review of Gildan Activewear Inc.

FEB 10, 2026 - GIL's management has demonstrated a track record of strong execution and disciplined capital allocation over the years with opportunistic acquisition and buyback. Historically, GIL runs a moderately leveraged balance sheet with aggressive, opportunistic share buyback, and this playbook has created healthy returns for shareholders considering the tough industry GIL operates in and the business growing at only low-to-mid single digit. The company recently went through a large acquisition of HanesBrands at a reasonable valuation considering the synergies and multiples paid for the transaction. The combined entity is expected to grow sales organically around 3%–5% over the long term, while EPS could compound by around 20% on average over the next three years. Given the strong business momentum and solid execution, we are upgrading our rating to “B+”.