• Record sales of $896 million, up 20% over prior year
• Operating margin of 19.4% and adjusted operating margin of 19.6%
• Record GAAP diluted EPS of $0.85, adjusted diluted EPS¹ of $0.86 up 27% over Q2 2021
• Cash flows from operating activities of $210 million and strong free cash flow¹ of $159 million in the quarter
• Company announces renewal of Normal Course Issuer Bid to repurchase up to 5% of outstanding shares
• Gildan named one of Canada’s Top 50 Corporate Citizens by Corporate Knights

Montreal, Thursday, August 4, 2022 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the second quarter ended July 3, 2022.

“We are pleased with our record sales and earnings for the quarter, underpinned by the Gildan sustainable growth strategy, including our focus on innovation and ESG,” said Glenn J. Chamandy, Gildan President and CEO. “Furthermore, our first half performance points to the tight control we currently have over our supply chain and cost structure, which puts us in a good position to support our customers' demand as we move through the remainder of the year.”

During the second quarter, we generated sales of $896 million, up 20% over the prior year. We maintained strong gross margin and SG&A performance, delivering operating margin of 19.4%, and adjusted operating margin of 19.6% in a continued environment of inflationary cost pressure, down only 30 basis points over last year. We delivered record GAAP diluted EPS of $0.85 and adjusted diluted EPS of $0.86, up 15% and 27%, respectively, compared to the second quarter of 2021. Cash generated from operating activities in the quarter totaled $210 million and after capex investments of approximately $50 million, we delivered $159 million of free cash flow. Consistent with our capital allocation priorities, we continued to be active on our share buyback program, repurchasing approximately 3.6 million shares in the quarter. With our current program now coming to expiry in early August, our Board of Directors approved the implementation of a new normal course issuer bid (NCIB) program to repurchase 5% of the Company’s issued and outstanding common shares over the next twelve months. We ended the quarter with a total debt position of $922 million, while net debt¹ increased slightly to $848 million, bringing our net debt leverage ratio¹ to 1.1, at the low end of the Company's target range.

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