Gildan Activewear Could See Headwinds Persisting Through 2027, UBS Says

12:00 PM EST, 11/06/2026 (MT Newswires) -- Gildan Activewear (GIL) could see topline headwinds persisting through 2027 as Q3 results suggest that the challenging macro backdrop has a greater impact on the company's business than expected, UBS said in a Friday note. The company posted fiscal Q3 adjusted earnings and net sales below analysts' expectations, along with its trimmed fiscal 2026 outlook. Apart from demand pressure, Gildan Activewear's retail business faces supply chain issues and unfavorable mix that could extend through H2 2027, UBS said. Without any potential positive catalyst in the near term, the headwinds could delay Gildan Activewear's sustainable topline recovery to 2028, the brokerage added. UBS cut its fiscal 2026 and 2027 earnings per share forecast for company to $3.70 and $3.25, respectively. The firm previously estimated EPS of $4.55 for 2026 and $5.45 for 2027. UBS also downgraded Gildan Activewear to neutral from buy and lowered its price target to $38 per share from $71. Price: 35.21, Change: +0.19, Percent Change: +0.54