March 20, 2020 Dear Shareholders, I’m writing to inform you of some important changes that have occurred since we sent our 2019 Annual Report for printing. The unprecedented public health impact of COVID-19 on our communities and the different measures implemented by governments worldwide have prompted us to adapt and implement some changes with regards to Gildan’s Annual General Meeting of Shareholders. In light of this situation, and to mitigate risks to the health and safety of our communities, shareholders, employees and other stakeholders, we have decided to hold the meeting in a virtual only format this year, which will be conducted via live audio webcast. All shareholders, regardless of their geographic location, will have an equal opportunity to participate in the Meeting online and engage with directors and management of the Company as well as with other shareholders. I invite you to read our Notice of Meeting and Management Information Circular carefully, as it contains a description of the the business to be conducted at the meeting as well as detailed instructions on how to participate in the meeting online and vote your shares. The Annual General Meeting is scheduled for 10:00 am (Eastern Time) on Thursday April 30th, 2020 and the webcast information will be available on the Company’s website at https://gildancorp.com/en/investors/events-and-presentations/ Your participation in the meeting is important to us and we value your input as shareholders. If you have questions but are unable to attend the meeting online, you are always welcome to initiate communications with the Board through our Shareholder Engagement Policy, which is available on the Company’s website at www.gildancorp.com. I would also like to add that in light of the current worldwide pandemic situation resulting from COVID- 19, the Board of Directors has asked Bill Anderson, and he has accepted, to defer his scheduled retirement at the upcoming Annual General Meeting and continue his work as a Director through to February 2021. Bill’s extensive experience will be invaluable to the Board of Directors and management in these unprecedented times. Finally, I would like to assure you that the Board of Directors and Gildan’s management team are closely monitoring the status of COVID-19 and assessing ways to reduce risks to our employees and our business. We are committed to making the necessary decisions to continue to operate responsibly by implementing measures to protect our employees’ health and well-being, while safeguarding the long- term health of our business. Sincerely, Donald C. Berg Chairman of the Board TABLE OF CONTENTS A MESSAGE FROM THE CHAIRMAN 2 A MESSAGE FROM THE PRESIDENT & CEO 5 FINANCIAL HIGHLIGHTS 8 GENUINE RESPONSIBILITY 10 OUR BRANDS 12 2019 REPORT TO SHAREHOLDERS 13 2019 ANNUAL REPORT 2019 ANNUAL REPORT A MESSAGE FROM seventh consecutive year. In January 2020, of training and development* to its that Gildan’s environmental footprint Gildan was included in the leadership employees and through numerous is amongst the best in the industry. THE band in CDP’s 2019 scores for corporate programs, provided support back to transparency and action on climate the communities in which it operates. Further, the Company continued to focus change with an A- score. The Company on achieving its 2020 environmental goals also received a Bronze Class Distinction and is making progress despite challenging CONSERVING THE ENVIRONMENT CHAIRMAN in the 2020 SAM Sustainability Yearbook. targets particularly related to energy The Company continues to This was Gildan’s eighth consecutive consumption. In 2018, Gildan was able to inclusion in the Sustainability Yearbook. be focused on the risks and have 40% of its total energy use come impacts of climate change from renewable sources* and recycle or re- It is an honour to have been appointed tions. While rightsizing and continuing to and on ensuring that business purpose 89% of its non-hazardous waste*. this past May as Chairman of the Board of improve its production and distribution strategies are developed Directors of Gildan Activewear, succeeding footprint in the western hemisphere, the to address these risks. In ETHICS AND COMPLIANCE Bill Anderson, our Chairman since 2012 Company also initiated plans to signifi- this regard, Gildan updated its Global and a member of our Board since cantly expand its operations in the eastern Environment and Energy Policy in 2019 to The Board’s ongoing 2006. Bill will be retiring at this year’s hemisphere, with the start of development cover the latest energy and environmental Annual General Meeting of Shareholders of a new major large-scale textile and sew- commitment to implementing challenges and opportunities, as well as in- and on behalf of the entire Board of ing manufacturing complex in Bangladesh. leading governance standards dustry best practices. This policy applies to Directors, I would like to thank him for and to foster a culture of The Board fully supports all manufacturing and distribution facilities his many years of service and invaluable the Back to Basics strategy, for Gildan-owned operations worldwide, integrity, accountability and contributions to Gildan during this period which is reinforcing the as well as to its employees at all levels of transparency across the of growth and change for the Company. Company’s core strengths the organization. The policy focuses on organization continues to strengthening Gildan’s environmental and 2019 was a challenging year for our to drive top and bottom-line frame the Company’s actions. energy performance as one of its highest In this regard, a global ethics survey Company with lower sales and earnings growth opportunities. priorities and embraces a proactive culture was conducted at the beginning of than the previous year. Nonetheless, through the implementation of initiatives the year to gain better insights from despite this result, the Board was pleased GENUINE RESPONSIBILITY® that build on its practices and ensures employees as the Company continues with the progress made on the Company’s strategic positioning, which is aimed at As one of the world’s largest vertical- driving growth in our imprintables brands, ly-integrated manufacturers of apparel, retail brands and private brands of our we understand that our continued com- customers by leveraging the Company’s mitment to operating responsibly and world class, large scale, low cost vertically- proactively implementing sustainable integrated manufacturing platform. With solutions throughout our operations is a its manufacturing competitive advantage, critical factor of our future success. We are CARING FOR OUR PEOPLE free cash flow generating capabilities, pleased to see continued progress with the AND THEIR COMMUNITIES strong balance sheet and effective Company’s initiatives in the areas of Envi- The Board of Directors is firmly committed capital allocation strategy, we continue ronmental, Social and Governance (ESG) to ensuring that strong support for to be confident about Gildan’s prospects practices and look forward to working with human rights is well embedded across for delivering growth and value to all the management team in enhancing our Gildan’s supply chain and is proud of key stakeholders over the long-term. programs in the coming year to continue the positive and sustainable economic to create value for all of our stakeholders. and social impact Gildan is having on its In 2019, Gildan returned $368 million of employees and in the communities where capital to shareholders in the form of In 2019, Gildan published its 2018 Genuine its facilities are located. The Company’s dividends and share buy-backs. Given our Responsibility® Sustainability report, the approximately 53,000 employees are conviction in the Company’s long-term Company’s 15th consecutive report present- its most important asset and it is their outlook, in February of 2020 the Board ing the Company’s results and progress skills and dedication that will continue approved a 15% increase in the dividend, related to its three core areas of focus – its to drive the Company’s results. marking the eighth consecutive annual div- people, the environment and communities. Because we know that a highly engaged idend increase. The Board also approved and inclusive workforce can make the the renewal of the Company’s normal In the past year, the Board was pleased to difference in our long-term success, course issuer bid to repurchase up to 5% of see Gildan’s labour compliance program, the Company continues to its issued and outstanding common shares. which aims to protect workers’ rights and invest in programs related improve working conditions, be re-accred- to health and safety and ited by the Fair Labor Association (FLA). BACK TO BASICS STRATEGY wellness, in addition to I am also delighted to say that the Com- emphasizing employees’ During 2019 management significantly pany’s Genuine Responsibility® program professional development. advanced its “Back to Basics” strategy, has been recognized by well-established Amongst its many contributions, Gildan executing on various initiatives to simplify organizations in the past year, including offered more than 5 million hours its product portfolio and optimize opera- the Dow Jones Sustainability Index for the * The numbers are for Gildan’s 2018 fiscal year. The 2019 ESG numbers will be published during the Summer of 2020. ESG numbers will be published during the Summer of 2020. 2019 The fiscal year. 2018 Gildan’s for numbers are * The and Analysis. Discussion Management’s in the 2019 of non-GAAP financial measures” “Definition and reconciliation to (1) Please refer 2 2019 ANNUAL REPORT 2019 ANNUAL REPORT 3 to develop its strong culture of ethics most recently retired from the Canadian A MESSAGE FROM and compliance. In 2019, the Company National Railway Company, where he also continued conducting extensive served as President and Chief Executive THE training throughout its global operations Officer from 2016 to 2018 and as Executive to ensure widespread understanding of Vice-President and Chief Financial Officer its Code of Conduct and Code of Ethics.