Gildan welcomes today's announcement by the U.S. Federal Trade Commission (FTC) that it has closed its narrow investigation into Gildan, which had focused on a single provision in Gildan’s sales incentive agreement with one of its wholesale distributor customers. After constructive engagement with the FTC, Gildan and the distributor amended the relevant contractual provision, which had prohibited Gildan from providing certain pricing and discounts to the distributor’s competitors. Following those changes, the FTC closed its investigation, and the matter was resolved amicably with no outstanding concerns. Gildan did not enter into any settlement or pay any monetary penalty to the FTC as part of this resolution.

Given the nature and scope of the investigation, advance disclosure was not warranted. Gildan did not admit any violation of law or wrongdoing. The Company remains confident that its sales incentive programs with its customers, including its agreement with this specific distributor, are consistent with all applicable laws and regulations, including the Robinson-Patman Act. The Company does not expect the resolution of this matter to have a material impact on its business, financial position or strategic priorities.

Beyond the information contained in the FTC's announcement, the public letter from the Company and this statement, Gildan will not be providing any further comments on this matter.