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GILDAN® PRESS RELEASE ( 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 * Due to the significant impact of COVID - 19 on prior year figures , certain comparisons to 2019 ( pre - Covid - 19 year ) are included for additional context Gildan Activewear Reports Strong Second Quarter 2021 Results and Reinstates Share Repurchase Program • • • . Continued momentum from " Back to Basics " benefits and economic recovery drives strong performance in quarter Sales of $ 747 million , despite supply chain constraints Strong operating margin of 21.4 % , adjusted operating margin¹ of 19.9 % GAAP diluted EPS of $ 0.74 , and adjusted diluted EPS¹ of $ 0.68 up 21 % over Q2 2019 • Record second quarter free cash flow¹ of $ 208 million • Reinstatement of normal course issuer bid to repurchase up to 5 % of outstanding shares Montreal , Thursday , August 5 , 2021 - Gildan Activewear Inc. ( GIL : TSX and NYSE ) today announced its results for the second quarter ended July 4 , 2021. The Company also announced the approval by its Board of Directors for the reinstatement of its share buyback program to repurchase up to 5 % of its issued and outstanding common shares . " Our business continued to build momentum during the second quarter as economic activity in North America trended positively and the power of our Back to Basics strategy continued to drive stronger profitability , " said Gildan President and CEO , Glenn J. Chamandy . " Once again , our team demonstrated exceptional operational capability by delivering on our targets while navigating through a tight supply chain environment . " We generated sales of $ 747 million in the second quarter , up 225 % over last year and down approximately 7 % from record second quarter 2019 sales . Our overall margin performance in the quarter was strong , improving both sequentially and from pre - pandemic levels in the second quarter of 2019. Gross margin totaled 32.2 % and adjusted gross margin¹ was 30.5 % , which , when excluding the one - time 300 basis points ( bps ) benefit from the USDA pandemic assistance payment in the first quarter of 2021 , was up sequentially by 320 bps and 240 bps , respectively . Gross margin performance also improved significantly over the second quarter of 2019 , up 440 bps and 270 bps on an adjusted basis . Selling , general and administrative ( SG & A ) expenses in the quarter came in at 10.7 % of sales , improving 170 bps from the first quarter of 2021 and 80 bps from 11.5 % in the second quarter of 2019. Consequently , we delivered GAAP diluted EPS of $ 0.74 and adjusted diluted EPS of $ 0.68 , reflecting a significant recovery over the loss incurred last year due to the effects of the onset of the pandemic . Compared to the second quarter of 2019 , EPS and adjusted diluted EPS in the quarter were up 51 % and 21 % , respectively . Free cash flow of $ 208 million was a record for a second quarter , bringing our year - to - date total to $ 246 million and our available liquidity position to approximately $ 1.3 billion . Net debt¹ further declined to $ 362.5 million and our net debt to adjusted EBITDA ratio decreased to 0.6 from 2.1 at the end of the first quarter this year and 3.5 at the end of 2020. With the Company's net debt leverage ratio ¹ now below its historical target range of one to two times net debt to adjusted trailing twelve months EBITDA¹ , driven by the strong recovery to date and the progress of our Back to Basics strategy , and with the Company's prospects for continued free cash flow generation , our Board approved the resumption of our share buyback program to repurchase up to 5 % of the Company's outstanding shares effective August 9 , 2021 . Page 1