• Strong free cash flow¹ of $137 million in the quarter, with ending liquidity position of $1.3 billion
• Sales recovered to $602 million, more than double prior quarter level
• Return to profit with GAAP diluted EPS of $0.28 and adjusted diluted EPS¹ of $0.30
• Gross margin of 22.5%, including 250-basis point impact of COVID-19 related period costs
• Production ramping up to meet demand, 75% of pre-COVID manufacturing capacity back on-line at quarter-end
• Global leadership in sustainability recognized in Wall Street Journal inaugural ranking

Montreal, Thursday, October 29, 2020 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced its results for the third quarter ended September 27, 2020.

Results for the third quarter reflected a strong improvement from the second quarter, despite ongoing COVID-19 impacts. We generated sales of $602 million, up sequentially from $230 million in the second quarter this year and returned to a profit with GAAP diluted EPS of $0.28 and adjusted diluted EPS of $0.30. Cash flow was strong with the Company generating free cash flow of $137 million in the quarter, with free cash flow generation over the last two quarters now totaling over $300 million. From a sales perspective, point of sales (POS) levels in the imprintables channel, although down on a year-over-year basis, remained relatively stable through the third quarter, while sales to retailers were up year-over-year. Increased capacity utilization and improved product-mix in the third quarter led to a significant sequential improvement in gross margin, which totaled 22.5%. Further, our strong focus on cost control translated to SG&A expenses totaling 10.2% of third quarter sales, with expenses down 22% on a year-over-year basis.

“We were pleased with the recovery of our sales and earnings during the third quarter. Retail sales performance was driven by momentum in underwear, and while the lack of large events continues to impact imprintable channels we are nonetheless seeing areas of opportunity” said Gildan President and CEO, Glenn J. Chamandy. “Further, we continue to be pleased with the results we are seeing from our “Back to Basics” strategy as we continue to place a strong focus on meeting our customers' needs and growing market share through simplification of our product portfolios, removal of cost and complexity from our business and fully leveraging our world class, sustainably-focused, vertically-integrated manufacturing platform.”

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