It’s been a positive few months overall for Counselor Top 40 supplier Gildan (asi/56842).

An earnings report dated July 31 shows that the publicly traded apparel supplier based in Montreal saw a record 6.5% sales increase to $919 million in Q2 2025, compared to the same quarter last year. Gildan primarily credits 12% growth in its activewear division, which includes promo sales, for the gains. The company also cited expansion in national accounts, key categories and new products, such as its soft cotton technology.

“As we navigate through the current fluid operating environment, we are focusing on what we can control, which is allowing us to continue to strengthen our competitive position and drive profitable top line growth,” said Glenn Chamandy, CEO and president of Gildan. “Moreover, our performance reflects the agility and resilience of our low-cost, vertically integrated business model, which remains the cornerstone of our ability to deliver long-term value for our stakeholders.”

Still, sales in hosiery and underwear were down 23.3% year to year to $96 million, while international sales were down 14.1% due to “demand softness in certain markets,” according to the company. Net financial expenses were also up $8 million year to year to $32 million.

Even so, Gildan pulled off a net earnings increase of 136.2%. Basic earnings per share rose 160% to $0.91, while adjusted diluted EPS rose a record 31.1% to $0.97, which the company says, “reflect[s] the improved financial performance and the benefit from a lower outstanding share base.”

Gross profit increased from $262 million in Q2 last year to $289 million in the same quarter this year, while operating income rose from $141 million last year to nearly $200 million in 2025. The income tax rate fell to 17.4% versus 27.2% last year. Overall, the supplier outperformed the industry in Q2 – distributors saw a collective sales decrease of 3.2%, following a 3.6% year-over-year decrease in the first quarter.

“Our performance reflects the agility and resilience of our low-cost, vertically integrated business model, which remains the cornerstone of our ability to deliver long-term value for our stakeholders.” Glenn Chamandy, Gildan (asi/56842)

Gildan says its 2025 outlook is still consistent with earlier estimates, with revenue growth expected to be in the mid-single digits for the year. Rationale includes tariff mitigation measures, such as a “flexible business model as a low-cost, vertically integrated manufacturer”; expected growth in key product categories; continued benefits from the company’s Barbados jobs credit program implemented last year; share repurchases under its normal course issuer bid program, exclusive to Canadian companies; and a consistent effective income tax rate.

“The sustained execution of our Gildan Sustainable Growth strategy positions us well for the remainder of 2025,” said the company. “As such, against the current fluid macroeconomic backdrop, we remain focused on operational agility and continue to believe that our vertically integrated business model, paired with our strong industry positioning, enables us to operate in dynamic environments and drive strong financial performance.”

With estimated 2024 North American promotional products revenue of $784 million, Gildan ranked third on Counselor’s most recent list of the largest suppliers in the industry. Since June, the company was recognized for its sustainability efforts by both TIME and Corporate Knights, and announced that it had enlisted AI-powered robots at its distribution center in Eden, NC, to improve safety and efficiency. Meanwhile, following last year’s proxy battle between Chamandy and the Gildan board, a lawsuit involving former members who allege that the company still owes them more than $25 million remains in litigation.