Gildan
Gildan Activewear Inc. is a Canadian vertically integrated manufacturer of basic apparel, founded in 1984 in Montreal by brothers Glenn and Greg Chamandy through the acquisition of a local knitting mill.[1][2] The company specializes in undecorated activewear products such as t-shirts, fleece garments, sport shirts, socks, and underwear, which are primarily sold in bulk to screen printers, wholesalers, and brands for customization.[3][4] Gildan operates a network of over 30 manufacturing facilities, mainly in Honduras, Haiti, Bangladesh, and Nicaragua, employing more than 44,000 workers and emphasizing large-scale, low-cost production through vertical integration from yarn spinning to finished garments.[5][6] This model has driven significant growth, with trailing twelve-month revenue reaching $3.343 billion as of June 2025, up 4.12% year-over-year.[7] While praised for operational efficiency and market dominance in wholesale basics, Gildan has encountered controversies over labor practices, including allegations of mass firings in Haiti for striking workers demanding better wages, Honduran court rulings finding violations of local labor laws requiring rehiring of dismissed employees, and reports of withheld severance payments to Central American factory workers totaling millions.[8][9][10] The company has disputed some claims, maintaining compliance with its social standards and reaccreditation of ethical practices, though independent NGO investigations highlight persistent issues in worker treatment and facility closures.[11][12]History
Founding and Early Development
Gildan Activewear Inc. traces its origins to the Chamandy family's apparel business, which began with Harley Inc. in 1946 as a manufacturer of basic children's activewear and underwear in Canada.[1] In 1984, brothers Glenn Chamandy and Greg Chamandy founded Gildan Textiles Inc. by acquiring a knitting mill in Montreal, Quebec, initially to produce and supply fabric to third-party clothing manufacturers, aiming to reduce costs through vertical integration in textile production.[13][14] The company expanded operations in 1987 by adding a dyeing and finishing facility, enabling greater control over the production process from raw yarn to dyed textiles.[13] Initially focused on wholesale fabric sales, Gildan shifted toward finished apparel manufacturing in the early 1990s, beginning production of T-shirts to capitalize on demand in the printwear market.[15] By 1992, it launched T-shirts under the Gildan brand, targeting screen printers and wholesalers.[13] In 1993, Gildan entered the Canadian and U.S. printwear markets through partnerships with major wholesalers, marking its transition from a supplier to a branded apparel producer.[13] The company's first full year of apparel production in fiscal 1994 generated sales exceeding $32 million, reflecting rapid early growth driven by low-cost manufacturing and focus on basic, high-volume cotton garments like T-shirts and sport shirts.[16] This period laid the foundation for Gildan's emphasis on operational efficiency and economies of scale in the commodity apparel segment.[17]Vertical Integration and Initial Expansion
Following its founding in 1984 through the acquisition of a knitting mill in Montreal, Quebec, Gildan pursued vertical integration by internalizing key production stages to enhance cost control and product consistency. In 1987, the company expanded this strategy by acquiring a dyeing and finishing facility in Canada, thereby managing the process from yarn knitting through fabric treatment, which reduced reliance on external suppliers and supported efficient scaling for the screen-printing market.[13][1] This domestic foundation enabled initial growth in North America, but to address rising labor costs and boost capacity, Gildan shifted toward offshore operations while maintaining vertical control. In 1997, it opened its first vertically integrated sewing facility in Honduras, employing 1,200 workers and incorporating knitting, dyeing, and garment assembly under one operation, which allowed for lower production expenses without sacrificing oversight of quality standards.[14][2] This move marked the beginning of Gildan's low-cost manufacturing model, leveraging regional advantages in Central America to supply the U.S. wholesale market.[18] By the late 1990s, these efforts positioned Gildan for broader expansion, culminating in its 1998 initial public offering on the Toronto Stock Exchange, which funded further facility development and solidified its control over the supply chain from raw materials to finished blanks.[2] The vertically integrated approach, emphasizing owned facilities for yarn spinning, knitting, dyeing, cutting, sewing, and packaging, differentiated Gildan from competitors dependent on fragmented outsourcing, enabling competitive pricing in basic apparel.[19][20]Business Model and Operations
Manufacturing Processes and Supply Chain
Gildan maintains a vertically integrated manufacturing model, owning and operating the majority of its production stages from raw material processing to finished garment distribution, with approximately 90% of revenues derived from company-controlled facilities.[6] This structure spans roughly 30 globally distributed factories, primarily in Central America, the Caribbean Basin, North America, and Bangladesh, enabling direct oversight of tier 1 through tier 3 suppliers for optimized efficiency and reduced external dependencies.[6][18] The production process begins with yarn spinning at six owned facilities in the United States, where raw cotton—sourced primarily from U.S. growers—is processed into high-quality ring-spun yarn through blending, carding, and spinning operations.[21] This yarn is then shipped to textile plants, mainly in Honduras, for knitting into fabric rolls on automated machines, followed by rinsing, jet dyeing, and heat stabilization to achieve colorfastness and dimensional stability.[22] Dyeing occurs in high-efficiency jets that minimize water and energy use, with the resulting greige or finished fabric inspected for quality before advancing.[22] Fabric is subsequently transferred to cutting and sewing facilities for garment assembly, where automated cutting machines slice panels to precise patterns, and sewing lines join components using specialized machinery for items like activewear basics and hosiery.[23] In Honduras, a core hub, textile operations concentrate in Rio Nance—including knitting, bleaching, dyeing, finishing, and cutting—while sewing occurs in facilities at San Pedro Sula, Villanueva, and Choloma, supporting high-volume output with integrated distribution from Rio Nance.[23][24] Finished products undergo quality checks, packaging, and shipment to North American distribution centers in Eden, North Carolina; Charleston, South Carolina; and Jacksonville, Florida.[25] This end-to-end control facilitates short cycle times, inventory minimization, and adaptability to demand fluctuations, as evidenced by Gildan's ability to maintain supply continuity during disruptions like the COVID-19 pandemic.[26] While the model emphasizes cost efficiencies through scale and technology, it relies on regional labor markets in lower-wage areas, with Bangladesh handling portions of sock and legwear production to diversify capacity.[6]Product Lines and Market Focus
Gildan's product lines center on basic, undecorated apparel designed for customization, including T-shirts, sport shirts, fleece hoodies and sweatshirts, and performance wear in the Printwear segment, alongside underwear, socks, and legwear in the Branded Apparel segment.[27][6] These offerings emphasize cost-efficient, high-volume production of cotton-based basics, with approximately 90% of products self-manufactured through vertically integrated facilities.[6] The company markets under a portfolio of owned and licensed brands tailored to specific categories: Gildan for heavyweight activewear blanks; Comfort Colors for garment-dyed, vintage-style apparel; American Apparel for fitted casual basics; Gold Toe and Peds for premium and casual socks, respectively; and licensed Champion for athletic-rooted performance items.[28] This diversification supports both blank goods and finished hosiery, with socks encompassing athletic, dress, casual, and workwear variants.[27] Gildan's market focus is predominantly wholesale B2B, targeting distributors, screenprinters, and embellishers who supply the imprintables industry, where it produces over 1.2 billion garments annually and leads in U.S. 100% cotton T-shirt market share for printwear.[29][30] Sales channels include retailers and e-commerce for branded items, but Printwear constitutes the largest and most profitable segment, serving customization demands in North America, Europe, and Asia-Pacific with minimal direct-to-consumer emphasis.[6][31] The Branded Apparel segment complements this by addressing everyday basics for mass-market retailers, prioritizing efficiency over fashion trends.[27]Growth and Financial Performance
Key Acquisitions and Expansions
Gildan has pursued growth through targeted acquisitions to enhance its product portfolio, distribution networks, and vertical integration in apparel manufacturing. In May 2016, the company signed a definitive agreement to acquire Alstyle Apparel, LLC, the apparel division of Ennis, Inc., which broadened its printwear market presence in the United States, Canada, and Mexico; the deal closed on May 26, 2016.[32][33] In January 2017, Gildan completed the acquisition of the American Apparel brand and select assets for $88 million following a court-supervised auction, integrating the brand into its wholesale operations while retaining its manufacturing focus.[34] In December 2021, Gildan acquired Frontier Yarns through the purchase of Phoenix Sanford, LLC, for approximately $168 million in cash, strengthening its domestic yarn-spinning capacity and supply chain control in the United States.[35] More recently, on August 13, 2025, Gildan announced an agreement to combine with HanesBrands in a transaction valued at $4.4 billion enterprise value (including $2.2 billion in equity), aiming to create a larger global basic apparel platform with enhanced innerwear brands and manufacturing scale; the deal, subject to regulatory approvals, is expected to close in late 2025 or early 2026.[36] These acquisitions have collectively expanded Gildan's brand offerings, from socks and hosiery via prior deals like Gold Toe integrations to broader activewear and underwear segments, supporting its low-cost, vertically integrated model.[37] In parallel, Gildan has invested in facility expansions to bolster production capacity and geographic diversification. In 2019, the company purchased land in Bangladesh for $45 million to develop a multi-plant manufacturing complex, targeting the Asian market and adding sewing, dyeing, and finishing capabilities.[38] By 2021, investments in Bangladesh included a wastewater treatment plant and safety upgrades to support ongoing operations.[39] In the United States, Gildan committed to major yarn-spinning expansions, including the 2021 Frontier acquisition and planned new facilities expected to create over 700 jobs, enhancing domestic supply chain resilience.[40] Additional investments include a $5 million yarn-spinning facility in Eden, North Carolina, and a new retail operations center in Berkeley County, South Carolina, generating around 250 jobs.[41][42] These moves reflect Gildan's strategy of scaling low-cost manufacturing while mitigating risks through regional diversification and vertical control over yarn production and finishing.Revenue Milestones and Recent Developments
Gildan Activewear's annual revenue has expanded significantly since 2010, when it stood at approximately $1.4 billion, reaching $3.271 billion by fiscal year 2024 through consistent demand for its vertically integrated apparel products.[43] [44] A pivotal milestone occurred in 2022, when revenue first exceeded $3 billion at $3.24 billion, underscoring the company's market share gains in activewear amid post-pandemic recovery.[44] This growth trajectory reflects an average annual revenue increase of about 8.7% over the past decade, supported by operational efficiencies and segment expansion.[45] The following table summarizes recent annual revenue figures:| Fiscal Year | Revenue (USD billions) | Year-over-Year Change |
|---|---|---|
| 2021 | 2.92 | - |
| 2022 | 3.24 | +10.88% |
| 2023 | 3.196 | -1.38% |
| 2024 | 3.271 | +2.34% |