Gildan Activewear Inc.

Ladies and gentlemen, thank you for standing by and welcome to Gildan Activewear's 2026 Q2 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jesse Haim, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.

Good morning, everyone, and thank you for joining us this morning. Earlier today, we issued a press release announcing our results for the second quarter of 2026 while updating our guidance for 2026 and maintaining our three-year objectives for the 2026-2028 period. The company's management discussion and analysis and consolidated financial statements for the three and six months ended June 28, 2026 are expected to be filed with the Canadian Securities Regulatory Authorities and the U.S. Securities and Exchange Commission today and will also be available on our corporate website. Now joining me on the call today are Glenn Chimandi, President and CEO of Gildan, Luca Barile, Executive Vice President, Chief Financial Officer, and Chuck Ward, Executive Vice President, Chief Commercial Officer. This morning we'll take you through the results for the quarter and then a question and answer session will follow. Before we begin, please take note that certain statements included in this conference call may constitute forward-looking statements which involve known and unknown risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. We refer you to the company's filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities, including in the case of our full-year NQ3-2026 outlook and our three-year objectives for the 2026-2028 period, as well as certain risks and assumptions related thereto our earnings press release dated July 30, 2026. During this call, we will also discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable IFRS measures are provided in today's earnings release, as well as our MD&A. Before I turn it over to Glen, a few items to note. We may refer to Hanes Brands as Hanes throughout this call. And earlier today, we also announced that we entered into a definitive agreement to divest the Hanes Brands Australian business, which we refer to as HAA. Remember that HAA had been classified as held for sale and reported as discontinued operations since the fourth quarter of 2025. As such, unless otherwise indicated, The figures we will be discussing today are from continuing operations and therefore exclude the results of the HAA business. And now, I'll turn it over to Glenn.

Thank you, Jessie. Good morning, everyone, and thank you for joining us on this call. As we highlighted this morning's press release, we delivered strong results in this quarter as our team continued to execute with discipline against our strategic objectives. Our second quarter net sales from continuing operation were $1.58 billion, up 72% versus last year, primarily due to the Hanes Brands acquisition. We also delivered second quarter adjusted diluted earnings per share from continuing operations of $1.28, up 32% compared to last year. Furthermore, we updated our 2026 guidance, which Luca will review. and we maintain our three-year objectives for the 2026-2028 period. We are very pleased with the excellent progress we are making with our integration of Hanes Brands, only eight months following the close of this transformational acquisition. In fact, we are well on track to generate approximately 100 million of targeted synergies in 2026. with the vast majority of these initiatives planned for this year already implemented. The actions we have taken so far in order to optimize our manufacturing and supply chain network are making our combined businesses more efficient. As we exit 2026, we expect these benefits to become increasingly visible in our operating performance. setting us up favorably to deliver the next 100 million in targeted synergies we have identified for 2027. Furthermore, we are optimizing our distribution capabilities and standardizing our key IT manufacturing and supply chain processes across the combined business. We continue to expect approximately 250 million of annual run rate cost synergies over the next three years. while pursuing additional opportunities beyond our current target as the integration progresses. Now, from a commercial and market backdrop perspective, the proactive reduced sell-in we undertook, which we announced in fourth quarter of 2025, is now complete. With our wholesale business is performing well, with the continued share gains, strong brand momentum, and market trends improved in June. In retail, the environment was more measured, but our brands are performing. So while we are prudently planning around a current soft retail backdrop, we're also very focused on the opportunities ahead. We announced this morning that we also expect to receive approximately 220 million of IPA tariff refunds in 2026. A significant portion of these tariff refunds represent the non-recurring benefit, which is primarily tied to fiscal 2025 and products manufactured in our Asian hub. This portion of the refund will be reinvested into new incremental strategic growth initiatives in the second half of 2026. mainly to elevate the Hanes brand portfolio, such as improving product quality, investing behind the brand, retail marketing, and accelerating product innovation and packaging enhancement to support stronger growth over time. Chuck will provide more details in a moment. In addition, a sizable portion of the refund reflects the recurring benefit because following recent changes in U.S. tariff policy, tariffs no longer apply to apparel qualifying as originating under CAFTA-DR, which is a structural benefit for the company going forward. As a result, our updated 2026 guidance reflects the structural tariff benefit and underscores the underlining earnings power of the combined businesses as we exit 2026 and a foundation for further earnings growth in 2027. Lastly, we also announced this morning that we entered into a definitive agreement to sell HAA. This step further reinforces our focus on significant value creation opportunities with Hanes Brands and is expected to accelerate our debt reduction towards the midpoint of our targeted leverage framework and supports the resumption of share repurchases once this level is reached. So let me conclude by saying our focus cannot be clearer. Control what we control, execute our strategy, capture the significant opportunity ahead, drive profitable growth, and long-term shareholder value. I look forward to answering your questions after our formal remarks, and now I'll turn it over to Chuck for a commercial review.