LOS ANGELES--(BUSINESS WIRE)--Browning West, LP (together with its affiliates, “Browning West” or “we”), which is a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “Company”) and beneficially owns approximately 5.0% of the Company’s outstanding shares, today issued the below statement regarding the Company’s apparent decision to leak a meritless letter it sent to a U.S. regulator to a Canadian news outlet. “ It is unfortunate that the Board is acting in a desperate, ...

LOS ANGELES--(BUSINESS WIRE)--Browning West, LP (together with its affiliates, “Browning West” or “we”), which is a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “Company”) and beneficially owns approximately 5.0% of the Company’s outstanding shares, today issued the below statement. “ Recent media coverage and an independent research report suggest the Board has presided over an egregious failure of due care and judgement by overlooking Mr. Tyra’s seemingly inappr ...

(all amounts are in U.S. dollars except where otherwise indicated) (1) Please refer to "Definition and reconciliation of non-GAAP financial measures" in this press release Gildan Activewear Reports Strong Fourth Quarter Results and Initiates Guidance for 2024 Montreal, Wednesday, February 21, 2024 - Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the fourth quarter and year ended December 31, 2023, and initiated annual guidance for 2024. In addition, the Company announced a dividend i ...

Financial Data and Key Metrics Changes - The company reported net sales of $870 million for Q3 2023, an increase of 2% year-over-year, with operating margins at 18.1% [6][12] - GAAP EPS and adjusted EPS were reported at $0.73 and $0.74 respectively [6][12] - Operating income reached $305 million, and free cash flow was $265 million, allowing for active capital allocation including share buybacks [7][13] - Gross margin was 27.5%, down 220 basis points year-over-year, primarily due to higher raw material costs [11] Business Line Data and Key Metrics Changes - Activewear sales were essentially flat at $744 million, while hosiery and underwear sales increased by 16% [8] - Strong performance in fleece and ring-spun products contributed positively to Activewear, despite lower shipments of basic T-shirts [8][10] - Hosiery and underwear categories showed increasing momentum, particularly with new underwear programs driving market share gains [10] Market Data and Key Metrics Changes - International market sales were down 23% due to lower demand and price pressures [9] - In Europe, POS was up low single digits, but de-stocking occurred, while Asia saw declines in the high single digits to low double digits [24] - The U.S. market remained strong with positive POS trends in both Activewear and hosiery categories [25] Company Strategy and Development Direction - The company is focused on maintaining growth momentum and strong operating margins despite a challenging environment [7][16] - There is an emphasis on product innovation and optimizing manufacturing to strengthen competitive cost structures [16][61] - The company is actively pursuing market share gains in key categories, particularly in ring-spun and fleece segments [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain growth despite inflationary pressures and uncertain macroeconomic conditions [16][17] - The outlook for Q4 includes expectations for revenue growth, although guidance has been adjusted to the lower end due to softness in certain markets [14][15] - The company anticipates strong free cash flow generation above $425 million for the full year [15] Other Important Information - The company is ramping up its new Bangladesh facility, expecting to reach an exit capacity rate of around 25% by the end of 2023 [13][94] - There is a focus on innovation in materials and product design to enhance market competitiveness [99][101] Q&A Session Summary Question: Can you talk about the international markets where you saw weakness? - Management confirmed that international markets contributed to the guidance change, with specific challenges in Europe and Asia due to inflationary pressures and de-stocking [22][24] Question: What changed in the U.S. business outlook? - The U.S. business is performing well, with positive POS trends, although some de-stocking is anticipated in Q4 [25] Question: Can you provide guidance on POS trends in the U.S. for Activewear? - POS in Activewear is running mid-single digits positive, driven by strong fleece and ring-spun growth [29] Question: What are the implications of the potential global minimum tax? - The company is monitoring developments closely and assessing the impact of various incentive programs in different jurisdictions [32][38] Question: Can you elaborate on the ring-spun business performance? - The ring-spun category is seeing strong trends and market share gains, supported by low-cost manufacturing investments [40][88] Question: What is the outlook for gross margin and SG&A in Q4? - Management expects sequential improvement in gross margin due to lower fiber costs, with SG&A spending remaining consistent [42][43] Question: How is the ramp-up of the Bangladesh facility progressing? - The facility is expected to reach 25% capacity by the end of Q4 2023, with plans to increase to 75% by Q4 2024 [94] Question: What type of innovation is being pursued? - The company is focusing on improving fabrications and product designs, including enhancements for digital printing [99][100]

Sales Performance - Gildan's activewear sales accounted for 85% of total net sales in fiscal 2022, while hosiery and underwear sales accounted for 15%[17]. - Net sales for Q3 2023 were $869.9 million, a 2.3% increase from $850.0 million in Q3 2022[58]. - Activewear sales were $744.4 million in Q3 2023, a slight increase of 0.3% from $742.0 million in Q3 2022[70]. - Hosiery and underwear sales increased by 16.2% to $125.5 million in Q3 2023, compared to $108.0 million in Q3 2022[70]. - For the nine months ended October 1, 2023, net sales decreased by 4%, primarily due to declines in Activewear, which were partly offset by a 10% increase in the Hosiery and underwear category[72]. - International sales faced challenges, with a 23% decline in Q3 and a 14% decline over the nine months compared to the previous year[73]. Financial Performance - Net earnings decreased to $127.4 million in Q3 2023, down 16.7% from $153.0 million in Q3 2022[66]. - Adjusted EBITDA for Q3 2023 was $188.3 million, a decline of 6.3% compared to $201.0 million in Q3 2022[66]. - The gross margin for Q3 2023 was 27.5%, down from 29.7% in Q3 2022, reflecting a decrease of 2.2 percentage points[66]. - Operating income for Q3 2023 was $155.0 million, down from $174.6 million in Q3 2022[171]. - Adjusted operating income decreased to $157.0 million in Q3 2023 from $170.0 million in Q3 2022, reflecting a decline of 7.6%[171]. - Net earnings for the nine months ended October 1, 2023, decreased to $380.3 million, down 16.9% from $457.6 million in the same period last year[94]. - Adjusted net earnings for the nine months ended October 1, 2023, were $323.4 million, a decline of 29.3% compared to $457.5 million in the prior year[94]. Manufacturing and Operations - The company is expanding manufacturing capacity in Bangladesh with a new multi-plant complex, with the first facility's construction nearing completion and operations ramping up through 2023 and into 2024[23]. - Gildan's manufacturing operations are located in four main hubs: the United States, Central America, the Caribbean, and Bangladesh, with all yarn-spinning operations based in the U.S.[22]. - The company operates a vertically integrated manufacturing process, controlling all aspects from yarn production to sewing, which enhances production efficiency and product quality[15]. - The company has strengthened its vertical integration by acquiring Frontier Yarns, enhancing its yarn-spinning capabilities[44]. Environmental and Social Responsibility - The company emphasizes social responsibility in its manufacturing practices, ensuring adherence to high environmental and social standards throughout its supply chain[14]. - The company aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 30% and Scope 3 emissions by 13.5% by 2030, with targets validated by SBTi[31]. - The company plans to source 100% sustainable cotton by 2025 and 30% recycled polyester or alternative fibers by 2027, aiming for zero manufacturing waste sent to landfill by 2027[32]. - The company aims to increase its contribution to community engagement to 1% of pre-tax earnings by 2026[35]. - The company is enhancing its ESG disclosure to improve transparency and stakeholder trust[36]. Capital and Investments - The company has made significant capital investments in its manufacturing facilities to maintain competitive advantages over less integrated competitors[15]. - The company is investing in capital projects while returning capital to shareholders through dividends and share repurchases, maintaining a healthy financial position[52]. - Capital expenditures for the nine months ended October 1, 2023, are projected to average 6% to 8% of annual sales, supporting organic growth and working capital needs[112]. - The company has established a capital allocation framework prioritizing organic growth investments, dividends, and opportunistic acquisitions to enhance shareholder returns[111]. Debt and Financial Position - The net debt increased to $1,018.1 million, a rise of 16.5% from $873.6 million at the beginning of the year[66]. - Long-term debt increased from $930 million as of January 1, 2023, to $1,025 million as of October 1, 2023, reflecting a net debt leverage ratio of 1.6 times compared to 1.1 times at the beginning of the year[124]. - The company expects to maintain compliance with its financial covenants over the next twelve months based on current expectations and forecasts[121]. - The company drew down $300 million from a delayed draw term loan during the three months ended October 1, 2023, contributing to its financing activities[119]. Shareholder Returns - The quarterly cash dividend declared per common share increased by 10.1% to $0.186 from $0.169 in the previous quarter[66]. - The company repurchased 6,212,500 common shares for a total cost of $190 million during the nine months ended October 1, 2023[140]. - A cash dividend of $0.186 per share was declared on November 1, 2023, with an expected aggregate payment of $32 million[135]. - The company is authorized to repurchase up to 8,778,638 common shares under its renewed Normal Course Issuer Bid (NCIB) program until August 8, 2024[139]. Risks and Challenges - The company relies on a small number of significant customers, which poses a risk to its revenue stability[11]. - Gildan's financial performance is subject to various risks, including fluctuations in raw material prices and changes in consumer preferences[11]. - The company faces risks including reliance on a small number of significant customers and potential impacts from changes in economic conditions[156]. - The proposed Global Minimum Tax Act by the Government of Canada could materially increase the company's effective tax rate starting in fiscal 2024[92].

Gildan Activewear, Inc. (NYSE:GIL) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET Company Participants Jessy Hayem - Vice President, Head of Investor Relations Rhodri Harries - Executive Vice President, Chief Financial and Administrative Officer Glenn Chamandy - President and Chief Executive Officer Chuck Ward - President, Sales, Marketing and Distribution Conference Call Participants Jay Sole - UBS George Doumet - Scotiabank Stephen MacLeod - BMO Capital Markets Luke Hannan - Canaccord Vishal S ...

2023 Second Quarter Shareholder Report | Contents | | | --- | --- | | MD&A | | | 1.0 Preface | 2 | | 2.0 Caution regarding forward-looking statements | 2 | | 3.0 Our business | 4 | | 4.0 Strategy | 8 | | 5.0 Operating results | 9 | | 6.0 Financial condition | 17 | | 7.0 Cash flows | 19 | | 8.0 Liquidity and capital resources | 21 | | 9.0 Legal proceedings | 25 | | 10.0 Financial risk management | 26 | | 11.0 Critical accounting estimates and judgments | 26 | | 12.0 Accounting policies and new accounting sta ...

2023 First Quarter Shareholder Report | Contents | | | --- | --- | | MD&A | | | 1.0 Preface | 2 | | 2.0 Caution regarding forward-looking statements | 2 | | 3.0 Our business | 4 | | 4.0 Strategy | 8 | | 5.0 Operating results | 9 | | 6.0 Financial condition | 17 | | 7.0 Cash flows | 19 | | 8.0 Liquidity and capital resources | 21 | | 9.0 Legal proceedings | 25 | | 10.0 Financial risk management | 25 | | 11.0 Critical accounting estimates and judgments | 26 | | 12.0 Accounting policies and new accounting stan ...

(all amounts are in U.S. dollars except where otherwise indicated) (1) Please refer to "Definition and reconciliation of non-GAAP financial measures" in this press release Gross margin of 32.6% in the quarter was up 340 basis points over 2021 due mainly to the impact of additional hurricane insurance recoveries recognized in the fourth quarter of 2022. Before reflecting the net impact of accrued insurance recoveries in both years, adjusted gross margin of 29.1% was down 150 basis points compared to 30.6% la ...

Table of Contents Table of Contents Except as otherwise indicated, the information contained in this Circular is given as at March 8, 2022. All dollar amounts are expressed in US dollars, the Company's functional and reporting currency, and the symbol "$" refers to the US dollar, unless otherwise indicated. Table of Contents NOTICE OF ANNUAL MEETING OF SHAREHOLDERS NOTICE OF ANNUAL MEETING OF SHAREHOLDERS To Our Valued Shareholders: Gildan Activewear Inc. ("Gildan" or the "Company") will hold its Annual Mee ...