• "Back to Basics" drives strong Q4 performance despite pandemic and weather-related events
• Q4 sales of $690 million, up 4.8% over prior year reflecting strong recovery from Q3 2020
• GAAP diluted EPS of $0.34; Adjusted diluted EPS¹ of $0.45, up 9.8% from 2019
• Operating margin of 11.4%; Adjusted operating margin¹ of 15.3%, up 310 bps from Q3 2020 and 120 bps year-overyear
• Record free cash flow¹ of $278 million in quarter, $358 million for full year
• Inclusion in Dow Jones Sustainability Index and leadership band of CDP 2020 Climate Change Report and Silver Class distinction in The Sustainability Yearbook 2021

Montreal, Thursday, February 25, 2021 - Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the fourth quarter and year ended January 3, 2021.

“Our Back to Basics strategy put us on a sound footing going into the pandemic and the additional actions we have taken during 2020 have enhanced our competitive positioning as we work towards a stronger environment, growth, and achieving our long-term profitability targets" said Glenn J. Chamandy, President and CEO of Gildan. “Further, against the backdrop of the pandemic and the headwind of back to back hurricanes in Central America our team showed exceptional operational execution and delivered strong results for the fourth quarter.”

In the fourth quarter, we reported GAAP diluted EPS of $0.34 and adjusted diluted EPS of $0.45 before reflecting net charges of approximately $23 million primarily related to our SKU rationalization initiative. We generated $690 million in sales, a strong recovery from the third quarter and up 5% compared to the prior year. Adjusted gross margin¹ of 25.8% in the quarter exceeded prior year levels and reflected a 330 basis point improvement from the third quarter this year. Selling, general and administrative expenses (SG&A) were down 6% bringing SG&A as a percentage of sales to 10.4%, a 120 basis point improvement over the prior year. Consequently, we reported adjusted operating margin of 15.3%, up from 14.1% a year ago. We reduced inventories over the prior year and generated fourth quarter record free cash flow of $278 million bringing our full year total to $358 million. At the end of the fourth quarter our available liquidity position was $1.56 billion with net debt¹ totaling $577 million, down from $862 million a year ago.

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