• Net sales of $870 million, up 2%
• Operating margin of 17.8%, adjusted operating margin¹ of 18.1%
• GAAP diluted EPS of $0.73 and adjusted diluted EPS¹ of $0.74 
• Cash flow from operations of $305 million and free cash flow¹ of $265 million
• Capital returned to shareholders of $113 million during the quarter through dividends and share repurchases
• The Company updates its fiscal 2023 guidance to the lower end of previously provided revenue and EPS ranges while maintaining expected FCF generation above $425 million

Montreal, Thursday, November 2, 2023 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the third quarter ended October 1, 2023. 

"Our competitive position remains very strong in a challenging environment driven by our industry-leading vertically integrated manufacturing platform. We delivered third quarter performance which came in overall in line with our expectations.  We resumed our sales growth trajectory and delivered operating margin within our target range” said Glenn J. Chamandy, Gildan’s President and CEO. 

During the third quarter, the Company delivered net sales of $870 million, up 2% over the prior year’s sales of $850 million, as we moved past the impact of strong prior year comparative periods tied to post-pandemic replenishment. We also delivered solid adjusted operating margin¹ of 18.1%.  Consequently, GAAP diluted EPS came in at $0.73 and adjusted diluted EPS¹ at $0.74, both down as anticipated from $0.84 in the third quarter last year. Cash flows from operating activities were strong for the quarter totaling $305 million, and we generated $265 million of free cash flow¹ after capital expenditures of $43 million. This positioned the Company well to continue to execute on its capital allocation priorities during the quarter and we repurchased 2.7 million shares at a cost of $80 million under our normal course issuer bid (NCIB) program. This program, which was recently renewed, authorizes the repurchase of up to 5% of the Company's outstanding common shares. We ended the third quarter with net debt¹ of $1,018 million and a leverage ratio¹ of 1.6 times net debt to trailing twelve months adjusted EBITDA¹ well within our targeted debt levels.    
 

Read the full press release by clicking here.