Gildan (asi/56842) has reached a deal to sell shares of HanesBrands Australia to BBFIT Investments Pte Ltd. for approximately $490 million. The transaction is expected to close in the second half of 2026, according to the Counselor Top 40 supplier.

The news comes as the Montreal, Canada-based apparel supplier took a hit of approximately $50 million in Q2, compared to a profit of $137.9 million the year prior. Net sales, however, reached $1.58 billion for the quarter, up from $918.5 million a year earlier.

Gildan and HanesBrands officially became one company at the end of 2025, completing a long-awaited acquisition of two of the largest apparel suppliers. HanesBrands’ Australian business has been held for sale and reported as discontinued operations since Q4 of 2025. 

“We continue to make excellent progress integrating HanesBrands and capturing synergies while leveraging the combined strength of our brands, manufacturing network and commercial capabilities, and investing strategically in innovation,” said Glenn J. Chamandy, president and CEO of Gildan, in an earnings report released Thursday. “While we remain mindful of the external environment and given the strength of our business fundamentals and the momentum we are building, our focus could not be clearer: Control what we can control, execute our strategy, capture the significant opportunities ahead and drive profitable growth and long-term shareholder value.”

Gildan’s wholesale sales declined 1.5% year over year during the quarter, dipping from $781 million to $769 million, which it attributes to “proactive inventory reduction across our combined customer channels, partially offset by pricing initiatives,” the report stated. However, the firm is witnessing growing interest in ringspun and fleece driven by product innovation. Comfort Colors, American Apparel and Champion are all generating double-digit sales growth year over year, the company noted. Gildan also reclaimed approximately $25 million in CAPE Phase 1 tariff refunds during the quarter.

Gildan has updated its full-year 2026 guidance, expecting revenue to be $6 billion to $6.2 billion, the range it had previously communicated. It maintained its three-year objectives for the 2026 to 2028 period.

Proceeds from the HanesBrands Australia deal will be used to pay down a portion of the company’s outstanding debt, the supplier said.

Based on estimated 2025 North American promotional products revenue of $901.6 million, Gildan ranks third on Counselor’s most recent list of largest suppliers in the industry.