• Q1 2019 sales of $624 million, GAAP diluted EPS of $0.11, and adjusted diluted EPS¹ of $0.16 at top end of guidance range
• Company announces land purchase in Bangladesh for approximately $45 million as part of major South-east Asian capacity expansion initiative to support international growth
• Company reaffirms sales and adjusted diluted EPS guidance for 2019

Montreal, Wednesday, May 1, 2019 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced its results for the first quarter ended March 31, 2019 and updated its full year guidance. The Company also announced the completion of the purchase of a sizable land parcel in Bangladesh as part of its new capacity expansion initiative to develop large-scale vertically-integrated manufacturing in South-east Asia to support expected sales growth.

Results for the first quarter were in line with expectations, setting the Company on track to deliver on its full year sales and EPS targets for 2019. GAAP diluted EPS for the first quarter totaled $0.11, and consistent with the Company's guidance as updated on March 26, 2019, adjusted diluted EPS of $0.16 came in at the high end of the Company's guidance range of $0.14 to $0.16. As expected, earnings were down for the quarter versus last year due to anticipated factors, including the impact on sales from lower levels of distributor restocking and higher raw material and other input cost pressures. In addition, the earnings decline reflected a $0.12 per share trade accounts receivable impairment charge primarily related to the wind down of the Heritage Sportswear operations which is under receivership, as previously announced on March 26, 2019. Net sales were down 3.6% in the first quarter and were better than the Company's guidance which called for a decline in the mid to high-single-digit range, primarily due to stronger than anticipated sales of fleece products and an earlier start of initial shipments of the Company's new private label men's underwear program which will be available to consumers in the second quarter.

During the quarter, we continued to execute on supply chain initiatives aimed at driving increased operational efficiency across our manufacturing base and from which cost benefits are expected to start materializing meaningfully in the fourth quarter of 2019 and benefiting gross margins in 2020. We also continued with efforts to reduce SG&A as we work towards achieving a 2020 target of lowering SG&A as a percentage of sales to 12% or better. Finally, on April 9, 2019, we completed the purchase of land in Bangladesh which is intended to be used to expand our global textile and sewing operations. Our plans consist of the development of a large multi-plant manufacturing complex which is currently expected to include two large textile facilities and related sewing operations. Once fully operational, this complex is expected to provide capacity to service over $500 million in sales. Over the next twenty-four months, the Company plans to construct and develop the first textile facility at the complex. Initial production at the facility is expected to start in the latter part of 2021. The Company believes the build out of a large-scale manufacturing hub in South-east Asia will significantly enhance its positioning to service international markets and support other key sales growth drivers.

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