Gildan Activewear delivered disappointing full-year guidance that fell short of Wall Street expectations following a soft fourth quarter. The Montreal-based apparel maker's outlook tempers the anticipated benefits from its recently completed HanesBrands acquisition, which was meant to drive growth and cost synergies.

Gildan's cautious forecast reflects ongoing challenges in the apparel sector, where demand has softened and inflationary pressures have squeezed margins. The company's performance in the final quarter of the fiscal year appears to have raised concerns among investors about its ability to execute on growth strategies, particularly as it integrates the HanesBrands business.

The guidance miss sent shares lower in pre-market trading, underscoring investor disappointment. While the HanesBrands acquisition was positioned as a transformative deal that would create a global leader in everyday basic apparel, Gildan's conservative outlook suggests the integration may be taking longer than expected or that market conditions are proving more challenging than anticipated.