• Record third quarter sales of $850 million, up 6% over prior year
• Strong operating margin of 20.5% and adjusted operating margin¹ of 20.0%
• GAAP and adjusted diluted EPS¹ of $0.84, with adjusted EPS up 5% year-over-year
• $125 million of capital returned to shareholders during the quarter through dividends and share repurchases

Montreal, Thursday, November 3, 2022 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the third quarter ended October 2, 2022.

“The strength of our activewear business, driven by North American imprintables sales, together with the benefits from our vertically integrated manufacturing model, allowed us to deliver another strong quarter” said Glenn J. Chamandy, Gildan’s President and CEO. “These results are a testament to the progress we are making under the Gildan Sustainable Growth strategy, which we remain fully focused on as we continue to drive to deliver on our three-year targets.”

We generated record third quarter sales of $850 million, up 6% year-over-year, as activewear sales to North American imprintable distributors held up well in the quarter, driven by higher net selling prices and sales volumes. We also delivered strong gross margin performance of 29.7% in the quarter, despite inflationary cost pressures, and SG&A came in better than anticipated at 9.3% of sales, resulting in operating and adjusted operating margins of 20.5% and 20.0%, respectively, at the high end of our target range. With record sales and strong margin performance in the quarter, GAAP and adjusted diluted EPS totaled $0.84, with adjusted diluted EPS up 5% over the prior year. After funding higher working capital requirements, primarily related to higher inventories, we generated cash flows from operating activities in the quarter of $66 million which were used to fund higher capital expenditures, resulting in approximately $7 million of free cash flow¹ consumed in the quarter. During the third quarter, we repurchased approximately 3.2 million shares under our normal course issuer bid (NCIB) programs. We ended the quarter with net debt¹ of $944 million, bringing our net debt leverage ratio¹ to 1.2, at the lower end of the Company's target range.

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