• FY 2022 record sales of $3,240 million, up 11% vs. FY 2021 and Q4 sales of $720 million, down 8% vs. prior year
• FY 2022 GAAP diluted EPS of $2.93, down 5%, and Q4 GAAP diluted EPS of $0.47 down 47% after reflecting Q4 2022 hosiery non-cash impairment charge of $0.35
• FY 2022 record adjusted diluted EPS¹ of $3.11, up 14% vs. prior year and Q4 adjusted diluted EPS of $0.65 down 14% vs. prior year
• $573 million of capital returned to shareholders in 2022; finished FY 2022 with strong balance sheet with net debt to adjusted EBITDA ratio¹ of 1.1; quarterly dividend increased by 10% for 2023 
• Company provides FY 2023 outlook; low single-digit revenue growth and adjusted diluted EPS in line with FY 2022 with 5% share repurchases expected for full year 
• Gildan continues to be recognized for its strong sustainability leadership 

Montreal, Wednesday, February 22, 2023 - Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the fourth quarter and year ended January 1, 2023 and provided an update regarding the Gildan Sustainable Growth Strategy and its outlook. 

“I am extremely proud of our team’s record performance in 2022 with revenue up 11% over 2021 and strong margin delivery in every fiscal quarter” said Glenn J. Chamandy, President and CEO of Gildan. “And despite near term headwinds related to the economic environment, which impacted our performance in the fourth quarter and which may persist through the first part of 2023, we remain excited about the Gildan Sustainable Growth strategy, as well as our strong competitive positioning and ability to support our customers, as we work towards delivering on our long-term growth aspirations”.

We generated sales for the fourth quarter of $720 million in a challenging environment, and while our operating margin was 12.9% after reflecting a non-cash impairment charge related to our Hosiery cash-generating unit (CGU), we delivered another quarter of strong adjusted operating margin¹ of 18.8%, well within our target range, with GAAP diluted EPS of $0.47 and adjusted diluted EPS¹ of $0.65. Cash flow from operating activities increased to $189 million, up $35 million from the prior year driven by strong working capital management initiatives in the quarter, bringing full year cash from operating activities to $413 million. After capital expenditures, we generated free cash flow¹ of  $131 million and $198 million, for the fourth quarter and the full year respectively. We repurchased 1.2 million shares under our normal course issuer bid (NCIB) program in the fourth quarter at a total cost of approximately $37 million, bringing our total repurchases for the year to 7% of the total float. Given the strength of our free cash flow and balance sheet, the Company returned a record $573 million of capital to shareholders in 2022 through a combination of share repurchases and dividend payments during the year. We ended 2022 with net debt¹ of $874 million and a net debt to adjusted EBITDA ratio¹ of 1.1, at the low end of our target range. In line with our capital allocation priorities, we announced a 10% increase in the amount of our quarterly dividend and we expect to continue with share repurchases of approximately 5% of the outstanding public float for 2023. 

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