Exhibit 99.1
 
 2010  REPORT TO  SHAREHOLDERS   December 6, 2010
 MD&A:OUR BUSINESS
    
    
    2STRATEGY AND OBJECTIVES
    
    
    5OPERATING RESULTS
    
    
    8SUMMARY OF QUARTERLY RESULTS
    
    
    15FINANCIAL CONDITION
    
    
    17CASH FLOWS
    
    
    18LIQUIDITY AND CAPITAL RESOURCES
    
    
    19LEGAL PROCEEDINGS
    
    
    21OUTLOOK
    
    
    22FINANCIAL RISK MANAGEMENT
    
    
    22CRITICAL ACCOUNTING ESTIMATES
    
    
    27ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS
    
    
    29RELATED PARTY TRANSACTIONS
    
    
    35DISCLOSURE CONTROLS
    
    
    35INTERNAL CONTROL OVER FINANCIAL REPORTING
    
    
    35RISKS AND UNCERTAINTIES
    
    
    36DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES
    
    
    42FORWARD LOOKING STATEMENTS
    
    
    44MANAGEMENTS RESPONSIBILITY FOR FINANCIAL REPORTING
    
    
    46AUDITED CONSOLIDATED FINANCIAL STATEMENTS
    
    
    47NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
    
    
    53




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
      OUR BUSINESS
 Our Products and Markets




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Our Facilities
 Textile and Sock Manufacturing
  Central American manufacturing hub
  Caribbean Basin manufacturing hub




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Yarn-Spinning
  Sales, Marketing and Distribution
    Employees and Corporate Offices
  Competitive Environment




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Economic Environment
    STRATEGY AND OBJECTIVES
  1.
    
    Maximize screenprint market penetration and opportunitiesWhile we have achieved a leadership position in the screenprint distributor channel in the
U.S. and in Canada, we continue to pursue further growth opportunities in the North American and
international screenprint markets.U.S. Screenprint Distributor MarketDuring fiscal 2010, our overall total market share in this channel increased to 64.1% for the
nine months ended September 30, 2010 compared to 56.6% for the same period last year. We intend
to continue to pursue further penetration in the U.S. distributor screenprint channel in all of
the product categories that we serve, through our continued focus on delivering consistent high
quality products, reliable customer service and competitive pricing. In addition, the
introduction of new products such as softer T-shirts and sport shirts and new styles tailored
for women could enable us to further increase our market share by serving certain niches of the
screenprint channel in which we previously did not participate. Although the global economic
downturn which began in the latter part of 2008 and




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 continued throughout 2009 negatively impacted demand in the U.S. distributor market, Gildan
continued to increase its leading share position during that period. Consequently, the
commencement of a recovery in demand in the distributor channel during fiscal 2010, combined
with our continued market share penetration, translated into strong sales growth for Gildan. We
expect to leverage our increase in market share in the U.S. distributor channel as the U.S.
screenprint market continues to recover to levels prior to the economic downturn.
 International and Other Screenprint Markets
 We believe we can continue to expand our presence in international and other screenprint markets. As the Company adds more production capacity, we intend to continue to expand our presence in
international screenprint markets, specifically Europe, Mexico and the Asia/Pacific region, and we
also plan to continue to grow our sales to large branded apparel companies and retailers which sell
imprinted activewear and are currently not serviced by our existing U.S. wholesale distributors. We
are continuing to expand our integrated manufacturing hubs in Central America and the Caribbean
Basin to support our projected growth, including allocating capacity to service product categories and
geographical locations where our growth was previously constrained by capacity availability. In
addition, the acquisition of our first vertically-integrated facility for the manufacture of ring-spun T-
shirts in Bangladesh during fiscal 2010, combined with the development over time of a vertically-
integrated manufacturing hub is intended to support our strategy to grow our international business in
Asia and Europe. During fiscal 2010, our unit sales to international and other screenprint markets
increased 58.5% compared to fiscal 2009.
 2.
    
    Leverage our successful business model to further penetrate the mass-market retail channel
 We are leveraging our existing core competencies, including our large scale
capital-intensive manufacturing, successful business model and competitive strengths into the
U.S. mass-market retail channel. Our value proposition in the retail channel as in the
screenprint channel combines consistent quality, competitive pricing and fast and flexible
replenishment due to our geographical proximity to our markets, as well as our leadership in
corporate social responsibility and environmental sustainability. As a leading supplier of basic
family socks in the U.S. mass-market retail channel, we intend to continue to build and leverage
our market share position in socks to establish an increased presence in the mass-market retail
channel with our activewear and underwear product lines. Our marketing strategy comprises a
three-pronged branding approach. First, within the mass-market retail channel, we are
positioning ourselves as a strategic supplier of selective national retailers exclusive brand
licenses or private label brands for socks, activewear and underwear to large retailers seeking
to consolidate their supply chain with fewer, larger manufacturers. Secondly, we are pursuing
the steady development of a Gildan brand strategy selling products with the Gildan label to
retailers using supplier brands to differentiate their product offering. Thirdly, we will also
evaluate alternatives to acquire or license selective brands for additional channels of
distribution.
 Although sock sales in fiscal 2010 were down year-over-year largely as a result of the
discontinuance of unprofitable sock programs and the elimination of certain programs that did
not fit with our business model, during fiscal 2010 we secured additional shelf-space for
existing sock programs and significant participation in Back-to-School programs at major
mass-market retailers. We shipped our first major mens underwear program for Walmart under the
Starter brand and a new underwear program for another mass-market retailer announced at the end
of fiscal 2009. During fiscal 2010, we obtained new retail programs in activewear, including the
family fleece program at a major national discount retailer and were awarded new activewear
programs for three other retailers. In addition, we secured new activewear programs for the
retail channel for fiscal 2011. During fiscal 2010, we continued to expand our regional retailer
customer base as well as Gildan branded product programs with retail chains.




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 3.
    
    Continue to generate manufacturing and distribution cost reductions
 We seek to continuously improve our manufacturing and distribution processes and cost
structure by developing and investing in cost-reduction initiatives. In addition to the
continuing consolidation of our manufacturing operations to our Central American and Caribbean
Basin hubs, we are implementing other cost-reduction initiatives. These include, among others,
our plans to reduce our reliance on high-cost fossil fuels and further reduce our impact on the
environment by installing additional biomass facilities as an alternate source of natural
renewable energy, and other initiatives to increase the efficiency of our energy-intensive
equipment and processes, which reflect the Companys commitment to sustainability. We are also
planning to achieve further efficiencies in operating our distribution activities from the
consolidation of our retail distribution centres to a single location in Charleston, South
Carolina and further expansion and automation of our wholesale distribution centre in Eden,
North Carolina.
 During fiscal 2010, we continued to consolidate our manufacturing operations in our
manufacturing hub in Central America as we transferred the remaining wet processing sock
operations and a portion of our knitting capacity in the U.S. to our Honduran sock manufacturing
facilities. In April 2010, we began the ramp-up of production at our second sock manufacturing
facility, Rio Nance 4, in Honduras. We also completed the construction of a biomass steam
generation system in the Dominican Republic, which is expected to result in a reduction of our
fossil fuel consumption and related costs associated with the textile production in the
Dominican Republic. In addition, during the year we initiated similar biomass steam generation
projects for our sock manufacturing in Honduras. The biomass facility for Rio Nance 3 became
operational at the end of fiscal 2010 and the second biomass facility for Rio Nance 4 became
operational during the first quarter of fiscal 2011. We are also planning to implement similar
systems for our textile manufacturing facilities in Honduras.
 4.
    
    Re-invest and/or redistribute cash flow
 We will continue to evaluate opportunities to reinvest our cash flows generated from
operations. Our primary use of cash will continue to be to finance our working capital and
capital expenditure requirements to support our organic growth, but at the same time we will be
open to evaluating complementary strategic acquisition opportunities which meet our return on
investment criteria, based on our risk-adjusted cost of capital.
 On December 2, 2010, the Company announced the introduction of its first quarterly cash
dividend. In addition, the Company also announced that it is reinstating a normal course issuer
bid to repurchase outstanding Common Shares of the Company in the open market. The Company believes
that its balance sheet and free cash flow generation provide it with significant financing
capacity and flexibility to be able to continue to pursue its growth strategy, at the same time
as introducing a dividend to provide yield and further enhance total returns to its
shareholders.




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 OPERATING RESULTS
 OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 3, 2010, COMPARED TO THE YEAR ENDED OCTOBER 4, 2009
 Non-GAAP Measures
   Business Acquisition




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Selected Annual Information
 (in $ millions, except per share amounts)
    
    2010
    
    
    2009
    
    
    2008Net Sales
    
    
    1,311.5
    
    
    
    1,038.3
    
    
    
    1,249.7Cost of sales
    
    
    947.2
    
    
    
    808.0
    
    
    
    911.2Gross profit
    
    
    364.3
    
    
    
    230.3
    
    
    
    338.5Selling, general and administrative expenses
    
    
    154.7
    
    
    
    134.8
    
    
    
    142.8Restructuring and other charges
    
    
    8.7
    
    
    
    6.2
    
    
    
    5.5Operating income
    
    
    200.9
    
    
    
    89.3
    
    
    
    190.2Financial expense (income), net
    
    
    0.8
    
    
    
    (0.3
    )
    
    
    9.2Non-controlling interest in consolidated joint venture
    
    
    3.8
    
    
    
    0.1
    
    
    
    0.2Earnings before income taxes
    
    
    196.3
    
    
    
    89.5
    
    
    
    180.8Income taxes
    
    
    (1.9
    )
    
    
    (5.8
    )
    
    
    34.4Net earnings
    
    
    198.2
    
    
    
    95.3
    
    
    
    146.4Basic EPS
    
    
    1.64
    
    
    
    0.79
    
    
    
    1.21Diluted EPS
    
    
    1.63
    
    
    
    0.79
    
    
    
    1.20Total assets
    
    
    1,321.2
    
    
    
    1,074.5
    
    
    
    1,085.7Total long-term financial liabilities(1)
    
    
    
    
    
    
    4.4
    
    
    
    53.0
  
 (1)
    
    Includes current portion of long-term debt. Net Sales




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Nine months ended
    
    Nine months endedSeptember 30,
    
    September 30,2010
    
    2010
    
    2009Unit Growth
    
    Market ShareGildan
    
    Industry
    
    GildanAll products
    
    
    19.7
    %
    
    
    5.8
    %
    
    
    64.1
    %
    
    
    56.6
    %T-shirts
    
    
    20.0
    %
    
    
    6.1
    %
    
    
    64.7
    %
    
    
    57.3
    %Fleece
    
    
    13.6
    %
    
    
    2.5
    %
    
    
    61.6
    %
    
    
    55.6
    %Sport shirts
    
    
    22.1
    %
    
    
    1.6
    %
    
    
    48.8
    %
    
    
    40.6
    %
    Gross Profit




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Selling, General and Administrative Expenses
   Restructuring and Other Charges(in $ millions)
    
    2010
    
    
    2009
    
    
    2008Loss (gain) on disposal of assets held for sale
    
    
    0.1
    
    
    
    (0.6
    )
    
    
    (0.5
    )Accelerated depreciation
    
    
    2.5
    
    
    
    
    
    
    
    Asset impairment loss and write-down of assets held for sale
    
    
    1.8
    
    
    
    1.6
    
    
    
    2.7Employee termination and other benefits
    
    
    0.7
    
    
    
    2.2
    
    
    
    0.4Other exit costs
    
    
    3.7
    
    
    
    3.1
    
    
    
    3.5Adjustment for employment contract
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.6
    )8.7
    
    
    
    6.2
    
    
    
    5.5
 Certain minor rounding variances exist between the financial statements and this summary.




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
    Financial Expense / Income, net
  Non-Controling Interest in Consolidated Joint Venture
  Income Taxes
  Net Earnings




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 4, 2009 COMPARED TO THE YEAR ENDED OCTOBER 5, 2008
 Net Sales
      Gross Profit




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Selling, General and Administrative Expenses
  Financial Expense / Income, net
  Income Taxes
   Net Earnings




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 SUMMARY OF QUARTERLY RESULTS
  (in $ millions, except per share amounts)
    2010
    
    2009Q4
    
    
    Q3
    
    
    Q2
    
    
    Q1
    
    
    Q4
    
    
    Q3
    
    
    Q2
    
    
    Q1Net Sales
    
    
    368.9
    
    
    
    395.3
    
    
    
    326.8
    
    
    
    220.4
    
    
    
    301.7
    
    
    
    307.8
    
    
    
    244.8
    
    
    
    184.0Net earnings
    
    
    56.8
    
    
    
    64.7
    
    
    
    48.8
    
    
    
    28.0
    
    
    
    42.4
    
    
    
    41.5
    
    
    
    7.1
    
    
    
    4.3Net earnings per shareBasic EPS(1)
    
    
    0.47
    
    
    
    0.53
    
    
    
    0.40
    
    
    
    0.23
    
    
    
    0.35
    
    
    
    0.34
    
    
    
    0.06
    
    
    
    0.04Diluted EPS(1)
    
    
    0.47
    
    
    
    0.53
    
    
    
    0.40
    
    
    
    0.23
    
    
    
    0.35
    
    
    
    0.34
    
    
    
    0.06
    
    
    
    0.04Total assets
    
    
    1,321.2
    
    
    
    1,265.3
    
    
    
    1,169.7
    
    
    
    1,092.5
    
    
    
    1,074.5
    
    
    
    1,118.4
    
    
    
    1,100.4
    
    
    
    1,028.7Total long-term financial liabilities
    
    
    
    
    
    
    0.1
    
    
    
    0.7
    
    
    
    3.2
    
    
    
    4.4
    
    
    
    92.9
    
    
    
    121.5
    
    
    
    51.2Weighted average number of shares outstanding (in 000s)Basic
    
    
    121,334
    
    
    
    121,264
    
    
    
    121,061
    
    
    
    120,977
    
    
    
    120,959
    
    
    
    120,911
    
    
    
    120,799
    
    
    
    120,573Diluted
    
    
    122,141
    
    
    
    122,098
    
    
    
    121,919
    
    
    
    121,762
    
    
    
    121,668
    
    
    
    121,483
    
    
    
    121,178
    
    
    
    121,408
 
 (1)
    
    Quarterly EPS may not add to year-to-date EPS due to rounding.
 Seasonality and Other Factors Affecting the Variability of Results and Financial Condition




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
     Fourth Quarter Results




---



##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
     FINANCIAL CONDITION




---



##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
        CASH FLOWS




---



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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
    LIQUIDITY AND CAPITAL RESOURCES




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Off-Balance Sheet Arrangements and Contractual Obligations
   Less than 1
    
    
    1 to 3
    
    
    4 to 5
    
    
    More than 5(in $ millions)
    
    Total
    
    
    fiscal year
    
    
    fiscal years
    
    
    fiscal years
    
    
    fiscal yearsOperating leases
    
    
    46.2
    
    
    
    9.2
    
    
    
    16.9
    
    
    
    7.9
    
    
    
    12.2Purchase obligations
    
    
    144.2
    
    
    
    144.2
    
    
    
    
    
    
    
    
    
    
    
    Total Contractual Obligations
    
    
    190.4
    
    
    
    153.4
    
    
    
    16.9
    
    
    
    7.9
    
    
    
    12.2
 Derivative Instruments
  Outstanding Share Data




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Review of Historical Stock Option Grants
  Declaration of Dividend and Initiation of Normal Course Issuer Bid
   LEGAL PROCEEDINGS
 Securities Class Actions




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
     OUTLOOK
 www.sedar.com www.sec.gov www.gildan.com
 FINANCIAL RISK MANAGEMENT
 Financial




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Instruments-Disclosures
  Credit risk




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  (in $ millions)
    
    October 3, 2010
    
    
    October 4, 2009United States
    
    
    118.4
    
    
    
    135.4Europe
    
    
    13.4
    
    
    
    12.2Canada
    
    
    6.4
    
    
    
    7.5Other regions
    
    
    7.5
    
    
    
    4.5Total trade receivables
    
    
    145.7
    
    
    
    159.6
 (in $ millions)
    
    October 3, 2010
    
    
    October 4, 2009Distributors and other customers in the screenprint channel
    
    
    96.3
    
    
    
    127.7Mass-market and regional retailers
    
    
    49.4
    
    
    
    31.9Total trade receivables
    
    
    145.7
    
    
    
    159.6
  (in $ millions)
    
    October 3, 2010
    
    
    October 4, 2009Not past due
    
    
    129.1
    
    
    
    144.5Past due 0-30 days
    
    
    17.5
    
    
    
    14.9Past due 31-60 days
    
    
    3.5
    
    
    
    3.5Past due 61-120 days
    
    
    1.2
    
    
    
    1.2Past due over 121 days
    
    
    1.4
    
    
    
    1.5Trade receivables
    
    
    152.7
    
    
    
    165.6Less allowance for doubtful accounts
    
    
    (7.0
    )
    
    
    (6.0
    )Total trade receivables
    
    
    145.7
    
    
    
    159.6
  (in $ millions)
    
    October 3, 2010
    
    
    October 4, 2009Balance, beginning of year
    
    
    6.0
    
    
    
    2.8Bad debt expense
    
    
    2.4
    
    
    
    6.0Write-off of accounts receivable
    
    
    (1.4
    )
    
    
    (2.8
    )Balance, end of year
    
    
    7.0
    
    
    
    6.0
 Liquidity Risk




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Foreign Currency Risk




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  October 3, 2010(in U.S. $ millions)
    
    CAD
    
    
    EUR
    
    
    GBP
    
    
    MXN
    
    
    AUDCash and cash equivalents
    
    
    0.8
    
    
    
    1.4
    
    
    
    4.2
    
    
    
    0.9
    
    
    
    0.4Accounts receivable
    
    
    5.3
    
    
    
    4.8
    
    
    
    6.2
    
    
    
    5.3
    
    
    
    3.8Foreign exchange contracts (derivative asset)
    
    
    1.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accounts payable and accrued liabilities
    
    
    (22.7
    )
    
    
    (5.1
    )
    
    
    
    
    
    
    (0.3
    )
    
    
    0.1Foreign exchange contracts (derivative liability)
    
    
    
    
    
    
    (2.0
    )
    
    
    (0.5
    )
    
    
    
    
    
    
    (0.6
    )
  For the year ended October 3, 2010(in U.S. $ millions)
    
    CAD
    
    
    EUR
    
    
    GBP
    
    
    MXN
    
    
    AUDImpact on net earnings before income taxes
    
    
    0.8
    
    
    
    
    
    
    
    (0.5
    )
    
    
    (0.3
    )
    
    
    (0.2
    )Impact on other comprehensive income before income taxes
    
    
    (0.2
    )
    
    
    1.6
    
    
    
    1.2
    
    
    
    
    
    
    
    0.4
  Commodity Risk for Cotton
   Interest Rate Risk




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   CRITICAL ACCOUNTING ESTIMATES
   Allowance for Doubtful Accounts
  Inventory Valuation
  Sales Promotional Programs




---



##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Recoverability of Long-Lived Assets
   Income Taxes




---



##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Business Acquisitions and Goodwill
  ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS
 Accounting Policies
  Future Accounting Standards
 International Financial Reporting Standards (IFRS)
  First Time Adoption of International Financial Reporting Standards
 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to
International Financial Reporting Standards




---



##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Progress towards Completion of our IFRS Changeover Plan
   Information technology and data systems
  Internal controls over financial reporting
  Disclosure controls and procedures, including investor relations and external communications
plans
  Financial expertise including training requirements




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Business contracts, including the impact on operating agreements and key performance
indicators
  Accounting policies, including choices among policies permitted under IFRS
   Investment in consolidated joint venture
 Business combinations  Transaction costs and restructuring costs:




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Business combinations  Contingent consideration:
  Borrowing costs:
 Income taxes  Assets transferred between entities within the consolidated group
 Income taxes  Deferred tax assets in a business combination recognized subsequent to the
measurement period




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Significant separable components of property, plant and equipment:
 Impairment of long-lived assets:
 Leases:
 Key accounting policies not expected to be significantly impacted
 Financial statement note disclosure




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##### 



(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 IFRS 1 Optional Exemptions
  Accounting Policy
    
    Optional ExemptionForeign exchange cumulative
translation
differences
    
    The exemption permits the balance of any cumulative
translation
adjustment (CTA) to be eliminated by an adjustment to opening
retained earnings at the transition date. As a result, the
Company will eliminate its CTA balance of $26.2 million
currently included in accumulated other comprehensive income
through an adjustment to retained earnings at the transition
date.Business combinations
    
    The exemption permits the Company not to apply IFRS 3,
Business Combinations, to business combinations
occurring prior to the transition date.Share based payment transactions
    
    The exemption permits the Company to apply IFRS 2, Share-based Payment, only to equity instruments that were granted
after November 7, 2002 which have not yet vested at the
transition date.Borrowing costs
    
    The exemption permits the capitalization of borrowing costs to
be limited to qualifying assets for which commencement date
for
capitalization is on or after the date of transition.
 Business Combinations
 Business Combinations Business Combinations Business Combinations
 Consolidated Financial Statements and Non-Controlling Interests
 Consolidated Financial Statements Non-Controlling
Interests Consolidated Financial Statements




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Consolidated
and Separate Financial Statements
 RELATED PARTY TRANSACTIONS
  DISCLOSURE CONTROLS
 Certification of
Disclosure in Issuers Annual and Interim Filings
  INTERNAL CONTROL OVER FINANCIAL REPORTING
 Managements Annual Report on Internal Control Over Financial Reporting




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Attestation Report of Independent Registered Public Accounting Firm
  Changes in Internal Controls Over Financial Reporting
   RISKS AND UNCERTAINTIES
  Our ability to implement our strategies and plans




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 Our ability to compete effectively
   Adverse changes in general economic conditions
  Our reliance on a small number of significant customers
   
    
    a significant customer substantially reduces its purchases or ceases to buy from us, or
Gildan elects to reduce its volume of business with or cease to sell to a significant
customer, and we cannot replace that business with sales to other customers on similar
terms;
    
    a large customer exercises its purchasing power to negotiate lower prices or to require
Gildan to incur additional service and other costs;
    
    further industry consolidation leads to greater customer concentration; and
    
    a large customer encounters financial difficulties and is unable to meet its financial
obligations.
 Our customers do not commit to purchase minimum quantities
  Our ability to anticipate evolving consumer preferences and trends




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Our ability to manage production and inventory levels effectively in relation to changes in
customer demand
   Fluctuations and volatility in the price of raw materials used to manufacture our products
  Our dependence on key suppliers




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  Climate, political, social and economic risks in the countries in which we operate
   
    
    fires, pandemics or natural disasters, such as hurricanes, floods and earthquakes;
    
    political instability, labour unrest, war or terrorism;
    
    disruptions in shipping and freight forwarding services;
    
    interruptions in the availability of basic services and infrastructure, including power
and water shortages.
 Changes to international trade regulation
     Factors or circumstances that could increase our effective income tax rate




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Compliance with environmental, health and safety regulations
   Our significant reliance on our information systems for our business operations
  Changes in our relationship with our employees or changes to domestic and foreign employment
regulations




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
   Negative publicity as a result of violation in labour laws or unethical labour and other
business practices
  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




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
  DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES
  Adjusted Net Earnings and Adjusted Diluted EPS
  (in $ millions, except per share amounts)
    
    2010
    
    
    2009
    
    
    2008Net sales
    
    
    1,311.5
    
    
    
    1,038.3
    
    
    
    1,249.7Cost of sales
    
    
    947.2
    
    
    
    808.0
    
    
    
    911.2Gross profit
    
    
    364.3
    
    
    
    230.3
    
    
    
    338.5Selling, general and administrative expenses
    
    
    154.7
    
    
    
    134.8
    
    
    
    142.8Restructuring and other charges
    
    
    8.7
    
    
    
    6.2
    
    
    
    5.5Operating income
    
    
    200.9
    
    
    
    89.3
    
    
    
    190.2Financial expense (income), net
    
    
    0.8
    
    
    
    (0.3
    )
    
    
    9.2Non-controlling interest in consolidated joint venture
    
    
    3.8
    
    
    
    0.1
    
    
    
    0.2Earnings before income taxes
    
    
    196.3
    
    
    
    89.5
    
    
    
    180.8Income taxes
    
    
    (1.9
    )
    
    
    (5.8
    )
    
    
    34.4Net earnings
    
    
    198.2
    
    
    
    95.3
    
    
    
    146.4Adjustments for:Restructuring and other charges
    
    
    8.7
    
    
    
    6.2
    
    
    
    5.5Income tax recovery on restructuring and other charges
    
    
    (3.3
    )
    
    
    (1.8
    )
    
    
    (0.6
    )Adjusted net earnings
    
    
    203.6
    
    
    
    99.7
    
    
    
    151.3Basic EPS
    
    
    1.64
    
    
    
    0.79
    
    
    
    1.21Diluted EPS
    
    
    1.63
    
    
    
    0.79
    
    
    
    1.20Adjusted diluted EPS
    
    
    1.67
    
    
    
    0.82
    
    
    
    1.24
  EBITDA




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 (in $ millions)
    
    2010
    
    
    2009
    
    
    2008Net earnings
    
    
    198.2
    
    
    
    95.3
    
    
    
    146.4Restructuring and other charges
    
    
    8.7
    
    
    
    6.2
    
    
    
    5.5Depreciation and amortization
    
    
    66.5
    
    
    
    65.4
    
    
    
    57.1Variation of depreciation included in inventories
    
    
    2.7
    
    
    
    (2.4
    )
    
    
    (1.0
    )Interest, net
    
    
    0.4
    
    
    
    1.8
    
    
    
    7.2Income taxes
    
    
    (1.9
    )
    
    
    (5.8
    )
    
    
    34.4Non-controlling interest of consolidated joint venture
    
    
    3.8
    
    
    
    0.1
    
    
    
    0.2EBITDA
    
    
    278.4
    
    
    
    160.6
    
    
    
    249.8
  Free Cash Flow
  (in $ millions)
    
    2010
    
    
    2009
    
    
    2008Cash flows from operating activities
    
    
    301.6
    
    
    
    169.2
    
    
    
    238.9Cash flows used in investing activities
    
    
    (141.2
    )
    
    
    (34.2
    )
    
    
    (227.3
    )Adjustments for:Business acquisition
    
    
    15.8
    
    
    
    1.2
    
    
    
    126.8Restricted cash (reimbursed) paid related to a business
acquisition
    
    
    (0.3
    )
    
    
    (4.0
    )
    
    
    10.0Free cash flow
    
    
    175.9
    
    
    
    132.2
    
    
    
    148.4
  Total Indebtedness and Cash in Excess of Total Indebtedness/Net Indebtedness
  (in $ millions)
    
    2010
    
    
    2009
    
    
    2008Current portion of long-term debt
    
    
    
    
    
    
    (2.8
    )
    
    
    (3.6
    )Long-term debt
    
    
    
    
    
    
    (1.6
    )
    
    
    (49.4
    )Total indebtedness
    
    
    
    
    
    
    (4.4
    )
    
    
    (53.0
    )Cash and cash equivalents
    
    
    258.4
    
    
    
    99.7
    
    
    
    12.4Cash in excess of total indebtedness (Net indebtedness)
    
    
    258.4
    
    
    
    95.3
    
    
    
    (40.6
    )




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 FORWARD-LOOKING STATEMENTS
 Private Securities Litigation Reform Act of 1995
  
    
    our ability to implement our growth strategies and plans, including achieving market
share gains, 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 price 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;
    
    the impact of climate, political, social and economic risks in the countries in which we
operate;
    
    disruption to manufacturing and distribution activities due to labour disruptions,
political 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, and
other laws and regulations in the jurisdictions in which we operate;
    
    our significant reliance on computerized information systems for our business
operations;
    
    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 labour laws 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 retain key personnel;
    
    changes to and failure to comply with consumer product safety laws and regulations;




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(GILDAN LOGO)
    
    MANAGEMENTS DISCUSSION AND ANALYSIS
 
    
    changes in accounting policies and estimates; and
    
    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.