Gildan Activewear shares fell 12% to $40.63 on Sept. 24, about half their $73.70 peak, amid concerns over the HanesBrands deal and softer demand. Gildan says operations are on track for targeted savings, but July guidance put 2026 revenue at the low end of its range.
Management targets about $250 million in annual savings over a few years. The bullish case is that HanesBrands adds major brands Gildan can sell through its low-cost manufacturing network, including its own factories in Central America and the Caribbean. Integration costs have already curbed profits.
The bearish case warns that if Gildan fails to absorb HanesBrands as planned, it could miss the savings target and face a huge debt burden; apparel is also cyclical and sensitive to tariffs and cotton costs. Insider Monkey reports that 32 hedge funds held GIL in the second quarter of 2026, down from 42 in the first. The next earnings reports will show whether savings arrive and demand steadies.
