• Q1 2020 sales of $459 million, GAAP diluted loss per share of $0.50, and adjusted diluted EPS¹ of $0.06 per share, significantly impacted by the COVID-19-driven global economic slowdown
• COVID-19-related impacts reflected in both GAAP loss and adjusted EPS for the quarter include: - 340 basis point gross margin impact, or $0.08 per share, related to manufacturing idling and other costs during the quarter - Allowance for expected credit losses of $0.10 per share reflecting increased potential customer credit risk
• Impairment of goodwill and intangibles GAAP charge of $0.47 per share due to lower market valuations
• Available liquidity increased to over $950 million after securing $400 million of incremental long-term debt
• Quarterly dividend and share repurchases suspended as precautionary measures
• Board, CEO, and senior executive compensation reductions and other workforce measures implemented
• Face mask and isolation gown production to support global PPE shortages now underway

Montreal, Wednesday, April 29, 2020 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced its results for the first quarter ended March 29, 2020.

“During the first quarter, we faced unprecedented impacts globally as the COVID-19 pandemic unfolded. This required us to amplify our focus on what we do best and on what we can do to support all our stakeholders as a values-driven, strong, resilient, and well-positioned Company. I am both proud of and extend my gratitude to our employees for their dedication and efforts during this crisis which we will continue to move through over the coming months. I am also equally proud that in these difficult times, Gildan has been able to join with our partners to adapt rapidly to be able to produce products for the health care sector and people working in essential roles, as we all fight this global challenge,” said Glenn J. Chamandy, President and CEO.

Despite on-track performance during the first two months of the quarter, as global efforts to slow the transmission of COVID-19 heightened in March we started to see a significant downturn in demand for our core products, particularly in the imprintables channel where our products are typically used for promotional, sporting, entertainment, and other large-gathering and cultural events. In retail, we also saw impacts, although less severe in the mass and online channels. Accordingly, total overall sales of $459 million in the first quarter were down 26% compared to the prior year quarter. We reported a GAAP loss per share of $0.50 for the first quarter compared to GAAP EPS of $0.11 in the first quarter of 2019, after reflecting total after-tax charges of approximately $110 million, or $0.56 per share. These aftertax charges included a $92 million ($0.47 per share) impairment charge for goodwill and intangible assets acquired in previous business acquisitions related to our Hosiery cash generating unit (CGU), restructuring and acquisition-related costs of $10 million ($0.05 per share), and a charge of $8 million ($0.04 per share) related to our stock-keeping unit (SKU) rationalization initiative. Before reflecting these charges, adjusted diluted EPS totaled $0.06 for the three months ended March 29, 2020, compared to $0.16 in the first quarter last year due mainly to the decline in sales, the impact of manufacturing and other costs related to idling of facilities, which negatively impacted gross margin by 340 basis points or $0.08 per share, and an increase of approximately $21 million ($0.10 per share) in the allowance for expected credit losses to reflect heightened credit risk in the current economic environment. These factors were partly offset on a yearover-year basis by the impact of the trade accounts receivables impairment charge of $24 million, or $0.12 per share, related primarily to a distributor receivership, which occurred in the first quarter last year.

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