Gildan Activewear's Q4 Earnings Approaching: What's in the Offing?

Gildan Activewear Inc. GIL is likely to register top-line growth when it reports fourth-quarter 2025 results on Feb. 26. The Zacks Consensus Estimate for revenues is pegged at $885.3 million, indicating a rise of 7.8% from the year-ago figure.

The consensus estimate for earnings is pegged at 94 cents per share, which indicates a 13.3% increase from the year-ago quarter’s actual. The consensus mark has remained unchanged in the past 30 days.

Gildan Activewear has a trailing four-quarter average earnings surprise of 2.6%. In the last reported quarter, the company delivered an earnings surprise of 2%.

Key Factors Likely to Impact GIL’s Q4 Results

Gildan Activewear’s upcoming quarterly results are expected to reflect gains from its Sustainable Growth Strategy, which focuses on expanding capacity, driving innovation and advancing ESG initiatives to strengthen competitiveness. The performance is likely to have been further supported by a robust business model and sturdy execution of its strategic priorities. 

The company, which has concluded the acquisition of HanesBrands, is gaining from a higher market share, led by strength in brands, product innovation and solid customer service. It has been enhancing its commercial capabilities to deliver the best offering to customers. GIL is focused on the optimization of manufacturing processes and the implementation of cost-reduction initiatives. The Activewear segment continues to gain momentum, fueled by market share expansion and strong demand. Gains from these initiatives are likely to have benefited the to-be-reported quarter’s performance.

On the flip side, a tough operating landscape, including the inflationary pressures, is a concern. The company has also been witnessing softness in the hosiery and underwear category for a while. In addition, higher operating expenses are likely to have somewhat dampened its profitability in the quarter under review.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Gildan Activewear has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

GIL’s Valuation & Price Performance

From the valuation standpoint, GIL has a forward 12-month price-to-earnings ratio of 15.72x, which is below the industry’s average of 16.41x. Also, the stock is trading below its five-year high of 21.94x.

GIL shares have gained 31.2% in the past six months, outperforming the industry’s growth of 0.1%.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:

Interparfums, Inc. IPAR currently has an Earnings ESP of +2.56% and a Zacks Rank of 2. IPAR is likely to register a top-line increase when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $385.9 billion, indicating a 6.8% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for IPAR’s fourth-quarter earnings is pegged at 78 cents a share, implying a 4.9% decrease from the year-earlier quarter. IPAR has a trailing four-quarter average earnings surprise of 5%.

Carnival CCL currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. CCL is likely to register growth in its top and bottom lines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.1 billion, indicating a 5% increase from the figure in the year-ago quarter.
 
The consensus estimate for CCL’s earnings is pegged at 18 cents per share, implying a 38.5% surge from the year-ago quarter’s actual. CCL displays a trailing four-quarter earnings surprise of 160%, on average.

lululemon athletica LULU currently has an Earnings ESP of +0.88% and a Zacks Rank of 3. LULU is likely to register a top-line decrease when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, indicating a 0.2% drop from the figure reported in the year-ago quarter.

The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.75 a share, implying a 22.6% decrease from the year-earlier quarter. LULU has a trailing four-quarter average earnings surprise of 7.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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