Gildan Activewear Announces Strong First Quarter Results and Reconfirms Full Year Guidance

Gildan Activewear Announces Strong First Quarter Results and Reconfirms Full 
Year Guidance 
MONTREAL, QUEBEC -- (Marketwire) -- 02/06/13 -- Gildan Activewear
Inc. (TSX:GIL)(NYSE:GIL) today announced record results for the first
quarter of a fiscal year, which were slightly in excess of the
guidance range which it had previously provided, and reconfirmed its
earnings guidance for fiscal 2013 which it had initiated on November
29, 2012. The Company also provided guidance for sales and earnings
for the second quarter of fiscal 2013. 
First Quarter Results 
Gildan today reported net earnings of U.S. $35.3 million or U.S.
$0.29 per share on a diluted basis for its first fiscal quarter ended
December 30, 2012, compared with a net loss of U.S. $46.1 million or
U.S. $0.38 per share in the first quarter of fiscal 2012. Results for
the first quarter of fiscal 2013 include restructuring and
acquisition-related costs amounting to U.S. $3.8 million after tax,
primarily related to the acquisition of Anvil Holdings Inc. (Anvil)
and the further write-down of assets held for divestiture since the
closure of U.S. sock manufacturing operations. Before the
restructuring and acquisition-related costs, adjusted net earnings
for the first quarter of fiscal 2013 were U.S. $39.1 million or U.S.
$0.32 per share, compared to a net loss of U.S. $45.8 million or U.S.
$0.38 per share in the first quarter of last year.  
The Company had previously projected adjusted net earnings of U.S.
$0.28-$0.31 per share for the first quarter, when it reported its
fiscal 2012 fourth quarter and full year results on November 29,
2012. Results were slightly more favourable than projected due to
lower than forecast promotional discounting in Printwear, partially
offset by the impact of the cost of repairs at the Dominican Republic
textile facility due to hurricane damage which amounts to
approximately U.S. $0.02 per share, primarily in the first quarter,
and which had not been reflected in the Company's previous earnings
guidance. 
The Company incurred a loss in the first quarter of last year due to
a combination of factors including historically high costs of cotton,
abnormally high levels of inventory destocking by wholesale
distributors, a special distributor inventory devaluation discount,
an abnorm
ally high promotional discount rate in the U.S. distributor
channel and an extended holiday manufacturing shutdown in order to
manage inventory levels. The significant improvement in the Company's
results in the first quarter compared to the first quarter of last
year was due to the benefit of significantly lower cotton costs,
improved market conditions for Printwear and the accretion from the
acquisition of Anvil. These positive factors were partially offset by
lower selling prices for Printwear, primarily reflecting the selling
price reductions implemented in the first quarter of fiscal 2012, and
higher selling, general and administrative expenses. 
Net sales in the first quarter amounted to U.S. $420.8 million, up
38.5% from U.S. $303.8 million in the first quarter of fiscal 2012.
The Company had projected that sales for the first quarter would be
in excess of U.S. $400 million. Sales for the Printwear segment
amounted to U.S. $243.7 million, up 65.6% from U.S. $147.2 million in
the first quarter of fiscal 2012, and sales for the Branded Apparel
segment were U.S. $177.0 million, up 13.0% from U.S. $156.6 million
for the first quarter of last year. 
The increase in sales in the Printwear segment was due to higher unit
sales volumes as a result of the strong recovery in demand for
Gildan(R) branded products compared to the first quarter of fiscal
2012, the non-recurrence of the abnormally high seasonal inventory
destocking by distributors, the non-recurrence of the distributor
inventory devaluation discount in the first quarter of fiscal 2012,
and the impact of the Anvil acquisition. Gildan inventories in the
U.S. distributor channel at the end of the first quarter were in good
balance relative to demand. 
The 13.0% growth in sales for the Branded Apparel segment was due to
the impact of the acquisition of Anvil and increased sales of
Gildan(R) branded activewear to retail customers, partially offset by
lower sales of socks compared to the first quarter of last year.  
Consolidated gross margins in the first quarter were 26.8% compared
to 2.1% last year. The significant recovery in gross margins was due
to the impact of lower-cost cotton, the improved industry conditions
for Printwear compared to the first quarter of last year, and more
favourable product-mix for Branded Apparel, partially offset by the
impact of the reduction in selling prices for Printwear and the
impact on manufacturing costs of inflation in purchased cost inputs
and the repairs due to the hurricane damage. 
Selling, general and administrative expenses in the first quarter
were U.S. $69.4 million, or 16.5% of net sales, compared with U.S.
$50.8 million, or 16.7% of net sales, in the first quarter of last
year. The increase in SG&A expenses was primarily due to increased
variable performance-driven compensation expenses, increased
marketing and advertising expenses and the impact of Anvil. 
In the first quarter, the Printwear segment reported operating income
of U.S. $45.9 million, compared to an operating loss of U.S. $30.8
million in the first quarter of fiscal 2012. The more favourable
results for the Printwear segment were primarily due to the impact of
lower cotton costs, improved industry conditions and the impact of
the Anvil acquisition, partially offset by lower selling prices and
higher SG&A expenses. The Branded Apparel segment reported quarterly
operating income of U.S. $19.6 million, compared with U.S. $2.4
million in the first quarter of fiscal 2012. The improved results for
Branded Apparel were due to lower cotton costs, the acquisition of
Anvil and the growth of Gildan(R) branded activewear sales to
retailers, partially offset by lower sales of socks and higher SG&A
expenses. 
Cash Flow and Financial Position 
The Company generated free cash flow of U.S. $21.3 million in the
first quarter, after financing a seasonal increase in inventories and
capital expenditures of U.S. $25.3 million. The Company ended the
first quarter of the fiscal year with bank indebtedness of U.S.
$177.0 million and cash and cash equivalents of U.S. $82.0 million. 
Outlook 
Net sales revenues are projected to slightly exceed the Company's
previous guidance of approximately U.S. $2.1 billion. Net sales for
Printwear are now projected to exceed the previous projection of
approximately U.S. $1.4 billion, and net sales for Branded Apparel
are still projected to be approximately U.S. $0.7 billion. The EPS
impact of the slightly higher than previously projected Printwear
sales is projected to be offset by higher than previously projected
cotton and manufacturing costs. Other material assumptions are
essentially unchanged compared to the Company's previous guidance.
Therefore, the Company is continuing to project adjusted EPS of U.S.
$2.60-$2.70 for the full fiscal year. 
During the second quarter, the Company announced selling price
reductions for certain printwear products, and applied the benefit of
these selling price reductions to distributor inventories. However,
the full financial impact of the price reductions, including the
distributor inventory devaluation, had been reflected in the
Company's prior guidance. The Company's guidance continues to reflect
the possibility of further increases in promotional discounting 
in
the balance of the fiscal year.  
The Company has begun shipment of new branded programs for national
customers in the second quarter and will begin shipment of further
new programs in the third quarter of the fiscal year. The Company
believes that it is positioned to secure further new programs for
both the Gildan(R) brand and the Gold Toe(R) portfolio of brands. In
order to maximize the opportunity provided by the new branded
programs, Gildan is increasing its advertising expenditures in
support of its brands during fiscal 2013 by over U.S. $15 million
compared with fiscal 2012, including a commercial which aired during
Super Bowl(R) XLVII on February 3, 2013. 
The cost of cotton futures has increased since the Company initiated
its fiscal 2013 guidance in November. The Company has not yet
purchased all of its cotton requirements for consumption in cost of
sales in the balance of fiscal 2013, and is assuming that the balance
of its requirements are purchased at approximately current futures
prices for cotton.  
The Company is projecting adjusted net earnings per share for the
second fiscal quarter of U.S. $0.54-$0.57, compared with adjusted EPS
of U.S. $0.23 per share in the second quarter of fiscal 2012.
Compared with last year, the impact of significantly lower cotton
costs, higher unit sales volumes for Printwear, more favourable
product-mix for Branded Apparel and the impact of Anvil are projected
to be partially offset by lower net selling prices for Printwear,
including the U.S. $0.04 per share impact of the distributor
inventory devaluation, the impact of short-term manufacturing
inefficiencies, the timing of the Easter holiday shutdown which falls
this year in the second fiscal quarter compared to the third quarter
in fiscal 2012, inflation in certain purchased cost elements and
increased selling, general and administrative expenses. Net sales
revenues for the second fiscal quarter are projected to be
approximately U.S. $520 million, compared with U.S. $483 million in
the second quarter of fiscal 2012. 
The Company is continuing to project free cash flow in excess of U.S.
$200 million in fiscal 2013. Capital expenditures are projected to be
approximately U.S. $200 million, including a total of approximately
U.S. $85 million for yarn-spinning investments. In January 2013, the
Company purchased a building in Salisbury, N.C. which will be used
for its planned ring-spun yarn manufacturing facility. As indicated
in November, the balance of the fiscal 2013 capital expenditure
program is primarily for expansion of textile capacity in Honduras,
including the carry over of expenditures from fiscal 2012 for Rio
Nance V and the refurbishment of Rio Nance I, as well as for
expansion of distribution capacity, including the construction of a
new distribution centre in Honduras and continued investments in
biomass projects. In addition, the Company is considering the option
of increasing the utilization of the former Anvil facility in
Honduras to support its growth in more specialized performance
products. This would allow Rio Nance I to focus on large-scale,
high-volume manufacturing of ring-spun underwear and activewear. 
Declaration of Quarterly Dividend 
The Board of Directors has declared a cash dividend of U.S. $0.09 per
share, payable on March 18, 2013 to shareholders of record on
February 21, 2013. This dividend is an "eligible dividend" for the
purposes of the Income Tax Act (Canada) and any other applicable
provincial legislation pertaining to eligible dividends. 
Disclosure of Outstanding Share Data 
As of January 31, 2013, there were 121,641,539 common shares issued
and outstanding along with 1,218,003 stock options and 867,276
dilutive restricted share units (Treasury RSUs) outstanding. Each
stock option entitles the holder to purchase one common share at the
end of the vesting period at a pre-determined option price. Each
Treasury RSU entitles the holder to receive one common share from
treasury at the end of the vesting period, without any monetary
consideration being paid to the Company. However, the vesting of at
least 50% of each Treasury RSU grant is contingent on the achievement
of performance conditions that are primarily based on the Company's
average return on assets performance for the period as compared to
the S&P/TSX Capped Consumer Discretionary Index, excluding income
trusts, or as determined by the Board of Directors. 


 
                                                                            
Consolidated Financial Data - unaudited                                     
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(in US$ millions, except per share amounts or                               
 otherwise indicated)                                 Q1 2013      Q1 2012  
----------------------------------------------------------------------------
Net sales                                               420.8        303.8  
Gross profit                                            112.6          6.4  
SG&A expenses                                            69.4         50.8  
Operating income (loss)                                  37.9        (44.7) 
EBITDA(1)                                                62.0        (26.3) 
Net earnings (loss)                                      35.3        (46.1) 
Adjusted net earnings (loss)(1)                          39.1        (45.8) 
                                                                            
----------------------------------------------------------------------------
Diluted EPS                                              0.29        (0.38) 
Adjusted diluted EPS(1)                                  0.32        (0.38) 
                                                                            
----------------------------------------------------------------------------
Gross margin                                             26.8%         2.1% 
SG&A expense as a percentage of sales                    16.5%        16.7% 
Operating margin                                          9.0%       (14.7)%
----------------------------------------------------------------------------
Cash flows from (used in) operations                     45.4       (112.4) 
Free cash flow(1)                                        21.3       (135.8) 
----------------------------------------------------------------------------
                                                                            
                                                                 September  
                                                 December 30,          30,  
As at                                                    2012         2012  
----------------------------------------------------------------------------
Inventories                                             622.2        553.1  
Trade accounts receivable                               203.1        260.6  
Net indebtedness(1)                                      95.0        110.6  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Please refer to "Non-GAAP Financial Measures" in this press release.   
Certain minor rounding variances exist betw
een the financial statements and
this summary.                                                              
                                                                            
Segmented Financial Data - unaudited                                        
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(in US$ millions)                                     Q1 2013       Q1 2012 
----------------------------------------------------------------------------
Segmented net sales:                                                        
 Printwear                                              243.8         147.2 
 Branded Apparel                                        177.0         156.6 
----------------------------------------------------------------------------
Total net sales                                         420.8         303.8 
----------------------------------------------------------------------------
                                                                            
Segment operating income (loss):                                            
 Printwear                                               45.9         (30.8)
 Branded Apparel                                         19.6           2.4 
----------------------------------------------------------------------------
Total segment operating income (loss)                    65.5         (28.4)
Corporate and other(1)                                  (27.6)        (16.3)
----------------------------------------------------------------------------
Total operating income (loss)                            37.9         (44.7)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes corporate head office expenses, restructuring and acquisition-
    related costs, and amortization of intangible assets, excluding        
    software.                                                              
Certain minor rounding variances exist between the financial statements and
this summary.                                                              

 
Information for Shareholders 
Gildan Activewear Inc. will hold a conference call to discuss these
results today at 5:00 PM ET. The conference call can be accessed by
dialing (800) 447-0521 (Canada & U.S.) or (847) 413-3238
(international) and entering passcode 34069901, or by live sound
webcast on Gildan's website ("Investor Relations" section) at the
following address:
http://gildan.com/corporate/IR/webcastPresentations.cfm. If you are
unable to participate in the conference call, a replay will be
available starting that same day at 8:00 PM ET by dialing (888)
843-7419 (Canada & U.S.) or (630) 652-3042 (international) and
entering passcode 34069901#, until Wednesday, February 13, 2013 at
midnight, or by sound webcast on Gildan's corporate website for 30
days following the live webcast.  
This release should be read in conjunction with Gildan's 2013 First
Quarter Management's Discussion and Analysis dated February 6, 2013
and its unaudited condensed interim consolidated financial statements
for the three months ended December 30, 2012 (available at
http://gildan.com/corporate/IR/quarterlyReports.cfm) which is
incorporated by reference in this release, and which will be filed by
Gildan with the Canadian securities regulatory authorities and with
the U.S. Securities and Exchange Commission. 
About Gildan 
Gildan is a leading supplier of quality branded basic family apparel,
including T-shirts, fleece, sport shirts, socks and underwear. The
Company sells its products under a diversified portfolio of
Company-owned brands, including the Gildan(R), Gold Toe(R) and
Anvil(R) brands and brand extensions, as well as under license
agreements for the Under Armour(R) and New Balance(R) brands. The
Company distributes its products in printwear markets in the U.S. and
Canada, where Gildan(R) is the industry-leading brand, and the
Company is increasing its penetration in international printwear
markets. The Company is also one of the largest suppliers of branded
athletic, casual and dress socks for a broad spectrum of retailers in
the U.S., and is developing Gildan(R) as a consumer brand for
underwear and activewear. 
Gildan owns and operates vertically-integrated, large-scale
manufacturing facilities which are primarily located in Central
America and the Caribbean Basin to efficiently service the
replenishment needs of its customers in the printwear and retail
markets. Gildan has over 31,000 employees worldwide and is committed
to industry-leading labour and environmental practices in all of its
facilities. More information about the Company and its corporate
citizenship practices and initiatives can be found at its corporate
websites www.gildan.com and www.genuinegildan.com, respectively. 
Forward-Looking Statements 
Certain statements included in this press release constitute
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and Canadian securities
legislation and regulations, and are subject to important risks,
uncertainties and assumptions. This forward-looking information
includes, amongst others, information with respect to our objectives
and the strategies to achieve these objectives, as well as
information with respect to our beliefs, plans, expectations,
anticipations, estimates and intentions, including, without
limitation, our expectation with regards to unit volume growth, sales
revenue, accretion from acquisitions, product-mix, selling, general
and administrative expenses, earnings per share, capital
expenditures, manufacturing efficiencies, selling prices, cotton
costs and other manufacturing cost inputs, income tax rate, and free
cash flow. Forward-looking statements generally can be identified by
the use of conditional or forward-looking terminology such as "may",
"will", "expect", "intend", "estimate", "project", "assume",
"anticipate", "plan", "foresee", "believe" or "continue" or the
negatives of these terms or variations of them or similar
terminology. We refer you to the Company's filings with the Canadian
securities regulatory authorities and the U.S. Securities and
Exchange Commission, as well as the risks described under the
"Financial risk management", "Critical accounting estimates and
judgments" and "Risks and uncertainties" sections of the 2012 Annual
MD&A for a discussion of the various factors that may affect the
Company's future results. Material factors and assumptions that were
applied in drawing a conclusion or making a forecast or projection
are also set out throughout this document. 
Forward-looking information is inherently uncertain and the results
or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors, which
could cause actual results or events to differ materially from a
conclusion, forecast or projection in such forward-looking
information, include, but are not limited to: 


 
--  our ability to implement our growth strategies and plans, including
    achieving market share gains, obtaining and successfully introducing new
    sales programs, implementing cost reduction initiatives and completing
    and successfully integrating acquisitions;
--  the intensity of competitive activity and our ability to compete
    effectively;
--  adverse changes in general economic and financial conditions globally or
    in one or more of the markets we serve;
--  our reliance on a small number of significant customers;
--  the fact that our customers do not commit contractually to minimum
    quantity purchases;
--  our ability to anticipate changes in consumer preferences and trends;
--  our ability to manage production and inventory levels effectively in
    relation to changes in customer demand;
--  fluctuations and volatility in the pr
ice of raw materials used to
    manufacture our products, such as cotton and polyester fibres;
--  our dependence on key suppliers and our ability to maintain an
    uninterrupted supply of raw materials and finished goods;
--  the impact of climate, political, social and economic risks in the
    countries in which we operate or from which we source production;
--  disruption to manufacturing and distribution activities due to such
    factors as operational issues, disruptions in transportation logistic
    functions, labour disruptions, political or social instability, bad
    weather, natural disasters, pandemics and other unforeseen adverse
    events; 
--  changes to international trade legislation that the Company is currently
    relying on in conducting its manufacturing operations or the application
    of safeguards thereunder;
--  factors or circumstances that could increase our effective income tax
    rate, including the outcome of any tax audits or changes to applicable
    tax laws or treaties; 
--  compliance with applicable environmental, tax, trade, employment, health
    and safety, anti-corruption, privacy and other laws and regulations in
    the jurisdictions in which we operate;
--  our significant reliance on computerized information systems for our
    business operations, including our JD Edwards Enterprise Resource
    Planning (ERP) system which is currently being upgraded to the latest
    system release, Enterprise One;
--  changes in our relationship with our employees or changes to domestic
    and foreign employment laws and regulations;
--  negative publicity as a result of violation of local labour laws or
    international labour standards, or unethical labour or other business
    practices by the Company or one of its third-party contractors;
--  our dependence on key management and our ability to attract and/or
    retain key personnel;
--  changes to and failure to comply with consumer product safety laws and
    regulations;
--  adverse changes in third party licensing arrangements and licensed
    brands;
--  our ability to protect our intellectual property rights;
--  changes in accounting policies and estimates;
--  exposure to risks arising from financial instruments, including credit
    risk, liquidity risk, foreign currency risk and interest rate risk, as
    well as risks arising from commodity prices; and
--  the adverse impact of any current or future legal and regulatory
    actions.

 
These factors may cause the Company's actual performance and
financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed
or implied by such forward-looking statements. Forward-looking
statements do not take into account the effect that transactions or
non-recurring or other special items announced or occurring after the
statements are made, may have on the Company's business. For example,
they do not include the effect of business dispositions,
acquisitions, other business transactions, asset write-downs, asset
impairment losses or other charges announced or occurring after
forward-looking statements are made. The financial impact of such
transactions and non-recurring and other special items can be complex
and necessarily depends on the facts particular to each of them.  
There can be no assurance that the expectations represented by our
forward-looking statements will prove to be correct. The purpose of
the forward-looking statements is to provide the reader with a
description of management's expectations regarding the Company's
future financial performance and may not be appropriate for other
purposes. Furthermore, unless otherwise stated, the forward-looking
statements contained in this press release are made as of the date of
this press release, and we do not undertake any obligation to update
publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise
unless required by applicable legislation or regulation. The
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. 
Non-GAAP Financial Measures 
This press release includes references to certain non-GAAP financial
measures such as EBITDA, adjusted net earnings, adjusted diluted EPS,
free cash flow, total indebtedness, and net indebtedness. These
non-GAAP measures do not have any standardized meanings prescribed by
International Financial Reporting Standards (IFRS) and are therefore
unlikely to be comparable to similar measures presented by other
companies. Accordingly, they should not be considered in isolation.
The terms and definitions of the non-GAAP measures used in this press
release and a reconciliation of each non-GAAP measure to the most
directly comparable IFRS measure are provided below. 
EBITDA 
EBITDA is calculated as earnings before financial expenses, income
taxes and depreciation and amortization and excludes the impact of
restructuring and acquisition-related costs, as well as the equity
earnings in investment in joint venture. The Company uses EBITDA,
among other measures, to assess the operating performance of its
business. The Company also believes this measure is commonly used by
investors and analysts to measure a company's ability to service debt
and to meet other payment obligations, or as a common valuation
measurement. The Company excludes depreciation and amortization
expenses, which are non-cash in nature and can vary significantly
depending upon accounting methods or non-operating factors such as
historical cost. Excluding these items does not imply they are
necessarily non-recurring. 


 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(in U.S.$ millions)                                    Q1 2013      Q1 2012 
----------------------------------------------------------------------------
Net earnings (loss)                                       35.3        (46.1)
Restructuring and acquisition-related costs                5.3          0.3 
Depreciation and amortization                             18.8         18.2 
Financial expenses, net                                    2.3          2.0 
Income tax expense (recovery)                              0.3         (0.5)
Equity earnings in investment in joint venture               -         (0.2)
----------------------------------------------------------------------------
EBITDA                                                    62.0        (26.3)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certain minor rounding variances exist between the financial statements and 
this summary.                                                               

 
Adjusted net earnings and adjusted diluted EPS 
Adjusted net earnings and adjusted diluted earnings per share are
calculated as net earnings and diluted earnings per share excluding
restructuring and acquisition-related costs, net of related income
tax recoveries. The Company uses and presents these non-GAAP measures
to assess its operating performance from one period to the next
without the variation caused by restructuring and acquisition-related
costs, net of related income tax recoveries, that could potentially
distort the analysis of trends in its business performance. Excluding
these items does not imply they are necessarily non-recurring. 


 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(in U.S.$ millions, except per share amounts)         Q1 2013       Q1 2012 
------------------------------------------------
----------------------------
Net earnings (loss)                                      35.3         (46.1)
Adjustments for:                                                            
  Restructuring and acquisition-related costs             5.3           0.3 
  Income tax recovery on restructuring and                                  
   acquisition-related costs                             (1.5)            - 
----------------------------------------------------------------------------
Adjusted net earnings (loss)                             39.1         (45.8)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic EPS                                                0.29         (0.38)
Diluted EPS                                              0.29         (0.38)
Adjusted diluted EPS                                     0.32         (0.38)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certain minor rounding variances exist between the financial statements and 
this summary.                                                               

 
Free cash flow  
Free cash flow is defined as cash from operating activities including
net changes in non-cash working capital balances, less cash flow used
in investing activities excluding business acquisitions. The Company
considers free cash flow to be an important indicator of the
financial strength and performance of its business, because it shows
how much cash is available after capital expenditures to repay debt
and to reinvest in its business, and/or to redistribute to its
shareholders. The Company believes this measure is commonly used by
investors and analysts when valuing a business and its underlying
assets.  


 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(in U.S.$ millions)                                   Q1 2013       Q1 2012 
----------------------------------------------------------------------------
Cash flows from (used in) operating activities           45.4        (112.4)
Cash flows used in investing activities                 (26.6)        (23.4)
Adjustment for:                                                             
  Business acquisition                                    2.5             - 
----------------------------------------------------------------------------
Free cash flow                                           21.3        (135.8)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certain minor rounding variances exist between the financial statements and 
this summary.                                                               

 
Total indebtedness and Net indebtedness 
Total indebtedness is comprised of bank indebtedness and long-term
debt (including any current portion), and net indebtedness is
calculated as total indebtedness net of cash and cash equivalents.
The Company considers total indebtedness and net indebtedness to be
important indicators of the financial leverage of the Company. 


 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                 December 30, September 30, 
(in U.S.$ millions)                                      2012          2012 
----------------------------------------------------------------------------
Long-term debt and total indebtedness                   177.0         181.0 
Cash and cash equivalents                               (82.0)        (70.4)
----------------------------------------------------------------------------
Net indebtedness                                         95.0         110.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Certain minor rounding variances exist between the financial statements and 
this summary.                                                               

Contacts:
Investor Relations
Laurence G. Sellyn,
Executive Vice-President,
Chief Financial and Administrative Officer
(514) 343-8805
lsellyn@gildan.com 
Sophie Argiriou,
Director,
Investor Communications
(514) 343-8815
sargiriou@gildan.com 
Media Relations
Genevieve Gosselin,
Director, Corporate
Communications
(514) 343-8814
ggosselin@gildan.com
 
 
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