• Record Q2 GAAP diluted EPS of $0.51 and adjusted diluted EPS¹ of $0.52, up 6% over last year
• Organic net sales growth of approximately 7%
• Continued growth momentum in imprintable fashion basics
• International sales up 35% for the quarter
• Sales and adjusted diluted EPS guidance updated to higher end of range
• $98 million of free cash flow¹ generated in the quarter
• Free cash flow for the full year now expected to exceed $425 million
• Company increases size of existing NCIB program to up to 10% of public float

Montreal, Thursday, August 2, 2018 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced its results for the second quarter ended July 1, 2018, updated its full year guidance and announced that it has increased the common share allotment of its current normal course issuer bid (NCIB) program.

The Company reported record second quarter sales and adjusted diluted EPS ahead of its expectations, setting the Company on the path to achieve the higher end of its full year guidance range for both sales and adjusted diluted EPS. Strong sales momentum in key growth areas such as fashion basics and international markets continued during the second quarter. Adjusted diluted EPS for the quarter was up 6.1%, largely in line with sales growth, despite higher manufacturing and supply chain costs in the quarter, partly offset by a 50 basis point improvement in SG&A expenses as a percentage of sales. SG&A leverage reflected the benefit of cost reductions resulting from the Company’s recent organizational consolidation which is progressing well. During the second quarter, the Company generated $98 million of free cash flow and now expects its free cash flow for the full year to be in excess of $425 million, compared to its previous guidance of in excess of $400 million. Shortly after the end of the second quarter, the Company completed the repurchase of the full share allotment pursuant to its NCIB program and today announced Board and Toronto Stock Exchange approval to increase the size of its program to up to 10% of the public float as at February 15, 2018.

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