Is Gildan Activewear / GIL Halal?
Gildan Activewear Inc. (TSX: GIL) is the Montreal-based apparel manufacturer — basic tees, fleece, underwear, and socks under Gildan, American Apparel, Comfort Colors, and (new in 2026) HanesBrands. Making clothes is a permissible business, but the HanesBrands acquisition loaded the balance sheet, and the debt fails gate two.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — PASS
Gildan manufactures basic apparel — t-shirts, fleece, underwear, socks — for wholesale and retail channels. Apparel manufacturing is a permissible business activity. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-to-market-cap: ~61.7% (ceiling ~33%) — FAIL. Gildan reported net debt of US$4.69 billion at the end of Q2 2026, taken on to fund the HanesBrands acquisition, with leverage at 3.2x net debt to trailing 12 months pro forma adjusted EBITDA. Against a NYSE market cap of about US$7.60 billion on September 28, 2026, US$4.69 billion is about 61.7% — over the ~33% ceiling, measured in the same currency (both in U.S. dollars).
Non-compliant income: not separately disclosed — FAIL stands regardless. Q2 highlights mention higher interest expense from acquisition debt but break out no interest income. The FAIL is driven entirely by the debt ratio. Gate two: FAIL.
What other screeners say
No verified current third-party rating was found for Gildan on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL rating here rests on this site's own screening methodology, not on a third-party endorsement.
The bottom line
This screener gives Gildan Activewear Inc. (TSX: GIL) a FAIL. Q2 2026 (reported July 30, 2026) posted net sales of US$1.58 billion (+72.3%, driven by HanesBrands), adjusted diluted EPS of US$1.28 (+32%), and US$326 million of quarterly free cash flow — but a US$50 million net loss after a US$140.4 million loss from the HanesBrands Australia discontinued operations now being sold for about US$490 million, with proceeds earmarked for debt paydown. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
What would flip it: deleveraging. The HanesBrands Australia sale (~US$490 million toward debt) plus ~US$1 billion of guided 2026 free cash flow could bring debt toward the ~33% ceiling (about US$2.5 billion at today's market cap) — then the screener gets re-run. See all the screeners on the screeners hub.
Frequently asked questions
Is Gildan Activewear stock halal?
This screener gives Gildan Activewear Inc. (TSX: GIL) a FAIL. Apparel manufacturing clears the business-activity screen, but the debt ratio fails: net debt of US$4.69 billion at June 30, 2026 — taken on for the HanesBrands acquisition — against a NYSE market cap of about US$7.60 billion on September 28, 2026: roughly 61.7%, over the ~33% ceiling in the same currency.
What are Gildan's debt and market-cap figures?
Gildan reported net debt of US$4.69 billion at the end of Q2 2026 (Gildan reports in U.S. dollars), a leverage ratio of 3.2x net debt to trailing 12 months pro forma adjusted EBITDA. Against a NYSE market cap of about US$7.60 billion on September 28, 2026, the debt-to-market-cap ratio is about 61.7% — over the ~33% AAOIFI ceiling, measured in the same currency.
Does Gildan earn interest income?
Gildan does not break out interest income in its quarterly highlights; Q2 2026 mentions only higher interest expense from acquisition-related debt. This screener's FAIL rests on the debt ratio, which fails decisively, so the income screen does not change the verdict.
Do any third-party screeners agree with this screener?
No verified current third-party rating was found for Gildan on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL rating here rests on this site's own screening methodology, not on a third-party endorsement.
What could change Gildan's halal screener?
Deleveraging — Gildan has agreed to sell HanesBrands Australia for about US$490 million, with proceeds earmarked for debt paydown and a return to its 1.5x–2.5x leverage framework. If debt falls toward the ~33% ceiling (about US$2.5 billion at today's US$7.60 billion market cap), the screener gets re-run. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.