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● ● GILDANⓇ Gildan Activewear Reports Record Results for the Third Quarter of 2021 Strong margin performance and demand momentum drives record results Record third quarter sales of $ 802 million , up 33 % over prior year and 8 % over Q3 2019 Operating margin of 25.1 % , adjusted operating margin¹ of 21.5 % Record GAAP diluted EPS of $ 0.95 , adjusted diluted EPS¹ of $ 0.80 up 167 % over Q3 2020 and 51 % vs Q3 2019 Record third quarter free cash flow of $ 232 million , $ 478 million year - to - date ● 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 Montreal , Thursday , November 4 , 2021 - Gildan Activewear Inc. ( GIL : TSX and NYSE ) today announced results for the third quarter ended October 3 , 2021 . " Our record performance for the third quarter was driven by the improved economics of our business , underpinned by our Back to Basics model , the operational excellence of our team and the ongoing recovery in demand , which drove sales volumes which are now above pre - pandemic levels , " said Glenn J. Chamandy , Gildan president and CEO . " Further , I feel confident that our team will continue to navigate through the tight supply chain environment , manage inflationary pressures and deliver results for our shareholders as we continue to move forward . " We generated sales of $ 802 million for the quarter , up 33 % over the prior year and 8 % above the third quarter of 2019 . Strong gross margin expansion drove operating margin of 25.1 % , and adjusted operating margin of 21.5 % which was up approximately 930 basis points versus last year and 500 basis points compared to the third quarter of 2019. Sales above pre - pandemic levels , combined with a stronger margin profile , drove record earnings for the quarter with GAAP diluted EPS of $ 0.95 , and adjusted diluted EPS of $ 0.80 which was up 51 % compared to the third quarter of 2019. Free cash flow of $ 232 million was also a record for a third quarter , bringing our year - to - date total to $ 478 million . Following our announcement of the restart of our normal course issuer bid ( NCIB ) program in August , we repurchased over 3.3 million common shares at a total cost of approximately $ 127 million during the quarter . Nonetheless , given the significant free cash flow generation in the quarter , our net debt¹ position declined to $ 287 million , reducing our net debt to adjusted EBITDA¹ ratio to 0.4 at the end of the quarter , leaving us with strong ongoing return of capital capability . Q3 2021 Operating Results Sales for the third quarter ending October 3 , 2021 , totaled $ 802 million , up 33 % over the prior year , consisting of activewear sales of $ 656 million , up 44 % , and sales in the hosiery and underwear category of $ 146 million , in line with the prior year level . The overall sales increase was driven primarily by higher unit sales of activewear and underwear , favourable product mix , as well as lower imprintables promotional spending and accruals . Activewear shipments were up in imprintables channels both in North America and internationally , as well as in North American retail channels , compared to the third quarter last year . Year - over - year in - line hosiery and underwear sales reflected higher underwear unit sales volumes and favourable product - mix , offset by lower unit sales of socks , which were impacted by supply tightness for certain products . We were pleased to see sales in the quarter grow from pre - pandemic levels , up 8 % compared to sales of $ 740 million in the third quarter of 2019. The increase was driven primarily by higher activewear and underwear unit sales volumes and favourable product - mix . Increased activewear sales volumes reflected higher POS in North American imprintables , which turned positive compared to the third quarter of 2019 , as well as higher sell through in retail channels , while international POS continued to trend lower than the same period in 2019. Sales in the hosiery and underwear category Page 1