• Q3 GAAP diluted EPS of $0.55, up 5.8%, and adjusted diluted EPS¹ of $0.57, up 7.5% over last year
• Net sales increase of 5% driven by double digit growth in activewear
• Continued growth momentum in imprintable fashion basics
• International sales up 28% for the quarter
• 150 basis points of SG&A leverage
• Free cash flow¹ of $118.4 million generated in the quarter
• Company secures large private label underwear program for 2019
• Company updates guidance for the full year

Montreal, Thursday, November 1, 2018 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced its results for the third quarter ended September 30, 2018 and updated its full year guidance.

During the third quarter, the Company continued to see good momentum in the key growth areas of its business. Total sales grew 5.3% compared to last year, despite the impact of Hurricane Florence, which limited shipments during September. Adjusted diluted EPS of $0.57 was up 7.5% over the same quarter last year and the Company generated free cash flow of $118.4 million. From a sales perspective, the Company continued to gain ground during the quarter in faster-growing areas, including fashion basics, international markets, global lifestyle brands, and e-commerce, and is starting to capitalize on the shifting emphasis by mass retailers toward their own private label brands. During the third quarter, the Company secured a new private label underwear program for 2019 with its largest mass retail customer. Shelf space allocated to the Company’s current men’s underwear program with this retailer will be increasing and will be dedicated to the retailer’s private label underwear brand offering in 2019, which the Company will be manufacturing. On the cost side, the Company is generating SG&A cost reductions as planned, with third quarter SG&A expenses as a percentage of sales down 150 basis points versus the same quarter last year, with continued strong focus on driving further efficiencies going forward. Free cash flow continues to build and the Company’s strong balance sheet positions it well to continue to execute on its capital allocation priorities.

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