| /s/Glenn J. Chamandy                               Glenn J. ChamandyPresident and Chief Executive Officer | /s/Rhodri J. Harries                                                                                                        Rhodri J. HarriesExecutive Vice-President,Chief Financial and Administrative Officer |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.52 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | *CPA auditor, CA, public accountancy permit No. A110592KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | KPMG Canada provides services to KPMG LLP. |
|--------|--------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.53 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | *CPA auditor, CA, public accountancy permit No. A110592KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | KPMG Canada provides services to KPMG LLP. |
|--------|--------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.54 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| GILDAN ACTIVEWEAR INC.                                                     |
|----------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                              |
| (in thousands of U.S. dollars)                                             |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   | January 3, |   | October 5, |
|                                                                       |   |   |   | 2016 |   | 2014 |
|                                                                       |   |   |   |   |   |   |   |   |
| Current assets:                                                            |   |   |   |   |   |   |   |
|                                                                       | Cash and cash equivalents (note 6) |   |   | $ |  50,675 |   | $ |  65,163 |
|                                                                       | Trade accounts receivable (note 7) |   |   |   |  306,132 |   |   |  354,265 |
|                                                                       | Income taxes receivable |   |   |   |  - |   |   |  1,439 |
|                                                                       | Inventories (note 8) |   |   |   |  851,033 |   |   |  779,407 |
|                                                                       | Prepaid expenses, deposits and other current assets |   |   |   |  42,934 |   |   |  41,291 |
|                                                                       | Assets held for sale (note 17) |   |   |   |  2,840 |   |   |  5,839 |
| Total current assets                                                       |   |   |   |  1,253,614 |   |   |  1,247,404 |
|                                                                       |   |   |   |   |   |   |   |   |
| Non-current assets:                                                        |   |   |   |   |   |   |   |
|                                                                       | Property, plant and equipment (note 9) |   |   |   |  1,044,389 |   |   |  873,726 |
|                                                                       | Intangible assets (note 10) |   |   |   |  336,753 |   |   |  287,353 |
|                                                                       | Goodwill (note 10) |   |   |   |  190,626 |   |   |  176,445 |
|                                                                       | Deferred income taxes (note 18) |   |   |   |  2,793 |   |   |  - |
|                                                                       | Other non-current assets |   |   |   |  6,105 |   |   |  8,116 |
| Total non-current assets                                                   |   |   |   |  1,580,666 |   |   |  1,345,640 |
|                                                                       |   |   |   |   |   |   |   |   |
| Total assets                                                               |   |   | $ |  2,834,280 |   | $ |  2,593,044 |
|                                                                       |   |   |   |   |   |   |   |   |
| Current liabilities:                                                       |   |   |   |   |   |   |   |
|                                                                       | Accounts payable and accrued liabilities |   |   | $ |  232,268 |   | $ |  368,712 |
|                                                                       | Income taxes payable |   |   |   |  953 |   |   |  - |
| Total current liabilities                                                  |   |   |   |  233,221 |   |   |  368,712 |
|                                                                       |   |   |   |   |   |   |   |   |
| Non-current liabilities:                                                   |   |   |   |   |   |   |   |
|                                                                       | Long-term debt (note 11) |   |   |   |  375,000 |   |   |  157,000 |
|                                                                       | Deferred income taxes (note 18) |   |   |   |  - |   |   |  349 |
|                                                                       | Other non-current liabilities (note 12) |   |   |   |  37,616 |   |   |  43,450 |
| Total non-current liabilities                                              |   |   |   |  412,616 |   |   |  200,799 |
|                                                                       |   |   |   |   |   |   |   |   |
| Total liabilities                                                          |   |   |   |  645,837 |   |   |  569,511 |
|                                                                       |   |   |   |   |   |   |   |   |
| Commitments, guarantees and contingent liabilities (note 23)               |
|                                                                       |   |   |   |   |   |   |   |   |
| Equity:                                                                    |   |   |   |   |   |   |   |
|                                                                       | Share capital |   |   |   |  150,497 |   |   |  124,595 |
|                                                                       | Contributed surplus |   |   |   |  14,007 |   |   |  20,778 |
|                                                                       | Retained earnings |   |   |   |  2,022,846 |   |   |  1,885,892 |
|                                                                       | Accumulated other comprehensive income |   |   |   |  1,093 |   |   |  (7,732) |
| Total equity attributable to shareholders of the Company                   |   |   |  2,188,443 |   |   |  2,023,533 |
|                                                                       |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                               |   |   | $ |  2,834,280 |   | $ |  2,593,044 |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.               |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
| On behalf of the Board of Directors:                                       |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |
| /s/Glenn J. Chamandy          |   |   | /s/ Russell Goodman          |
| Glenn J. Chamandy                                                          |   |   | Russell Goodman |
| Director                                                                   |   |   | Director |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.55 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|--------|--------|-----------------|----------------|--------|-----------------|----------------|
|                                                                                                                                  |                                                        |   |   | 2015            |           |   | 2014            |
|                                                                                                                                  |                                                        |   |   |            | (15 months)    |   |            |           |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Net sales                                                                                                                             |                                                        |   | $      |  2,959,238 |           | $      |  2,359,994 |
| Cost of sales                                                                                                                         |                                                        |   |   |  2,229,130 |           |   |  1,701,311 |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Gross profit                                                                                                                          |                                                        |   |   |  730,108   |           |   |  658,683   |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Selling, general and administrative expenses (note 16(a))                                                                             |                                                        |   |   |  387,963   |           |   |  286,015   |
| Restructuring and acquisition-related costs (note 17)                                                                                 |                                                        |   |   |  14,908    |           |   |  3,247     |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Operating income                                                                                                                      |                                                        |   |   |  327,237   |           |   |  369,421   |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Financial expenses, net (note 14(c))                                                                                                  |                                                        |   |   |  17,797    |           |   |  2,897     |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Earnings before income taxes                                                                                                          |                                                        |   |   |  309,440   |           |   |  366,524   |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Income tax expense (note 18)                                                                                                          |                                                        |   |   |  4,526     |           |   |  6,972     |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Net earnings                                                                                                                          |                                                        |   |   |  304,914   |           |   |  359,552   |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Other comprehensive income (loss), net of related income taxes                                                                        |                                                        |   |   |            |           |   |            |
|                                                                                                                                  | Cash flow hedges (note 14(d))                               |   |   |            |  8,825    |   |            |  (7,076)  |
|                                                                                                                                  | Actuarial loss on employee benefit obligations (note 12(a)) |   |   |            |  (10,000) |   |            |  (3,614)  |
|                                                                                                                                  |                                                        |   |   |            |  (1,175)  |   |            |  (10,690) |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Comprehensive income                                                                                                                  |                                                        |   | $      |  303,739   |           | $      |  348,862   |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| Earnings per share: (note 19)                                                                                                         |                                                        |   |   |            |           |   |            |
|                                                                                                                                  | Basic (1)                                                   |   |   | $               |  1.26     |   | $               |  1.48     |
|                                                                                                                                  | Diluted (1)                                                 |   |   | $               |  1.25     |   | $               |  1.46     |
| (1) All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |
|                                                                                                                                  |                                                        |   |   |            |           |   |            |           |
| See accompanying notes to consolidated financial statements.                                                                          |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.56 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|---------------|--------|-------------|----------------|---------------|--------|----------------|--------|-------------|---------------|--------|--------|-----------------|--------|--------|
|                                                                                                                              |          |   |        |           |          |   |           |   | Accumulated |          |   |   |            |   |   |
|                                                                                                                              |          |   |        |           |          |   |           |   | other       |          |   |   |            |   |   |
|                                                                                                                              | Share capital |   | Contributed |           | comprehensive |   | Retained       |   | Total       |
|                                                                                                                              | Number        |   | Amount      |           |  surplus |   | income (loss)  |   | earnings    |          | equity |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Balance, September 29, 2013                                                                                                       |  243,252 |   | $           |  107,867  |          | $      |  28,869   |   | $           |  (656)   |   | $      |  1,583,346 |   | $      |  1,719,426 |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Share-based compensation                                                                                                          |  -       |   |        |  -        |          |   |  10,099   |   |        |  -       |   |   |  -         |   |   |  10,099 |
| Shares issued under employee share                                                                                                |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   purchase plan                                                                                                         |  42      |   |        |  1,117    |          |   |  -        |   |        |  -       |   |   |  -         |   |   |  1,117 |
| Shares issued pursuant to exercise of                                                                                             |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   stock options                                                                                                         |  236     |   |        |  4,617    |          |   |  (1,310)  |   |        |  -       |   |   |  -         |   |   |  3,307 |
| Shares issued or distributed pursuant to                                                                                          |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   vesting of restricted share units                                                                                     |  1,718   |   |        |  25,475   |          |   |  (25,475) |   |        |  -       |   |   |  -         |   |   |  - |
| Share repurchases for future settlement                                                                                           |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   of non-Treasury RSUs (note 13(e))                                                                                     |  (600)   |   |        |  (14,481) |          |   |  8,383    |   |        |  -       |   |   |  -         |   |   |  (6,098) |
| Dividends declared                                                                                                                |  -       |   |        |  -        |          |   |  212      |   |        |  -       |   |   |  (53,392)  |   |   |  (53,180) |
| Transactions with shareholders of the                                                                                             |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   Company recognized directly in equity                                                                                 |  1,396   |   |        |  16,728   |          |   |  (8,091)  |   |        |  -       |   |   |  (53,392)  |   |   |  (44,755) |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Cash flow hedges (note 14(d))                                                                                                     |  -       |   |        |  -        |          |   |  -        |   |        |  (7,076) |   |   |  -         |   |   |  (7,076) |
| Actuarial loss on employee benefit                                                                                                |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   obligations (note 12(a))                                                                                              |  -       |   |        |  -        |          |   |  -        |   |        |  -       |   |   |  (3,614)   |   |   |  (3,614) |
| Net earnings                                                                                                                      |  -       |   |        |  -        |          |   |  -        |   |        |  -       |   |   |  359,552   |   |   |  359,552 |
| Comprehensive income                                                                                                              |  -       |   |        |  -        |          |   |  -        |   |        |  (7,076) |   |   |  355,938   |   |   |  348,862 |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Balance, October 5, 2014                                                                                                          |  244,648 |   | $           |  124,595  |          | $      |  20,778   |   | $           |  (7,732) |   | $      |  1,885,892 |   | $      |  2,023,533 |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Share-based compensation                                                                                                          |  -       |   |        |  -        |          |   |  12,152   |   |        |  -       |   |   |  -         |   |   |  12,152 |
| Shares issued under employee share                                                                                                |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   purchase plan                                                                                                         |  59      |   |        |  1,761    |          |   |  -        |   |        |  -       |   |   |  -         |   |   |  1,761 |
| Shares issued pursuant to exercise of                                                                                             |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   stock options                                                                                                         |  1,462   |   |        |  21,904   |          |   |  (7,465)  |   |        |  -       |   |   |  -         |   |   |  14,439 |
| Shares issued or distributed pursuant to                                                                                          |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   vesting of restricted share units                                                                                     |  1,013   |   |        |  19,031   |          |   |  (19,031) |   |        |  -       |   |   |  -         |   |   |  - |
| Shares repurchased and                                                                                                            |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   cancelled (note 13(d))                                                                                                |  (3,050) |   |        |  (1,555)  |          |   |  -        |   |        |  -       |   |   |  (78,188)  |   |   |  (79,743) |
| Share repurchases for future settlement                                                                                           |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   of non-Treasury RSUs (note 13(e))                                                                                     |  (560)   |   |        |  (15,239) |          |   |  7,488    |   |        |  -       |   |   |  -         |   |   |  (7,751) |
| Dividends declared                                                                                                                |  -       |   |        |  -        |          |   |  85       |   |        |  -       |   |   |  (79,772)  |   |   |  (79,687) |
| Transactions with shareholders of the                                                                                             |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   Company recognized directly in equity                                                                                 |  (1,076) |   |        |  25,902   |          |   |  (6,771)  |   |        |  -       |   |   |  (157,960) |   |   |  (138,829) |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| Cash flow hedges (note 14(d))                                                                                                     |  -       |   |        |  -        |          |   |  -        |   |        |  8,825   |   |   |  -         |   |   |  8,825 |
| Actuarial loss on employee benefit                                                                                                |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
|   obligations (note 12(a))                                                                                              |  -       |   |        |  -        |          |   |  -        |   |        |  -       |   |   |  (10,000)  |   |   |  (10,000) |
| Net earnings                                                                                                                      |  -       |   |        |  -        |          |   |  -        |   |        |  -       |   |   |  304,914   |   |   |  304,914 |
| Comprehensive income                                                                                                              |  -       |   |        |  -        |          |   |  -        |   |        |  8,825   |   |   |  294,914   |   |   |  303,739 |
| Balance, January 3, 2016                                                                                                          |  243,572 |   | $           |  150,497  |          | $      |  14,007   |   | $           |  1,093   |   | $      |  2,022,846 |   | $      |  2,188,443 |
| All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |
|                                                                                                                              |          |   |        |           |          |   |           |   |        |          |   |   |            |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                      |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.57 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                        |                                                            |   |           |   | 2015            |            | 2014   |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------|--------|----------------|--------|-----------------|-----------------|--------|
|                                                                        |                                                            |   |           |   |            | (15 months)     |   |   |   |
| Cash flows from (used in) operating activities:                             |                                                            |   |           |   |            |            |   |   |
|                                                                        | Net earnings                                                    |   |           |   | $               |  304,914   |   | $ |  359,552 |
|                                                                        | Adjustments to reconcile net earnings to cash flows from        |   |           |   |            |            |   |   |   |
|                                                                        |   operating activities (note 21(a))                   |   |           |   |            |  147,654   |   |   |  93,188 |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
|                                                                        |                                                            |   |           |   |            |  452,568   |   |   |  452,740 |
|      Changes in non-cash working capital balances: |                                                            |   |           |   |            |            |   |   |
|                                                                        |   Trade accounts receivable                           |   |           |   |            |  47,893    |   |   |  (90,549) |
|                                                                        |   Income taxes                                        |   |           |   |            |  2,478     |   |   |  (628) |
|                                                                        |   Inventories                                         |   |           |   |            |  (36,149)  |   |   |  (149,231) |
|                                                                        |   Prepaid expenses, deposits and other current assets |   |           |   |            |  (4,290)   |   |   |  (10,007) |
|                                                                        |   Accounts payable and accrued liabilities            |   |           |   |            |  (108,876) |   |   |  61,775 |
| Cash flows from operating activities                                        |                                                            |   |           |   |  353,624   |            |   |  264,100 |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| Cash flows from (used in) investing activities:                             |                                                            |   |           |   |            |            |   |   |
|                                                                        | Purchase of property, plant and equipment                       |   |           |   |            |  (319,374) |   |   |  (286,553) |
|                                                                        | Purchase of intangible assets                                   |   |           |   |            |  (7,545)   |   |   |  (6,150) |
|                                                                        | Business acquisitions (note 5)                                  |   |           |   |            |  (103,800) |   |   |  (101,732) |
|                                                                        | Proceeds on disposal of assets held for sale and property,      |   |           |   |            |            |   |   |   |
|                                                                        |    plant and equipment                           |   |           |   |            |  5,463     |   |   |  4,894 |
| Cash flows used in investing activities                                     |                                                            |   |           |   |  (425,256) |            |   |  (389,541) |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| Cash flows from (used in) financing activities:                             |                                                            |   |           |   |            |            |   |   |
|                                                                        | Increase in amounts drawn under revolving                       |   |           |   |            |            |   |   |   |
|                                                                        |    long-term bank credit facility                |   |           |   |            |  218,000   |   |   |  157,000 |
|                                                                        | Dividends paid                                                  |   |           |   |            |  (79,687)  |   |   |  (53,180) |
|                                                                        | Proceeds from the issuance of shares                            |   |           |   |            |  16,032    |   |   |  4,316 |
|                                                                        | Repurchase and cancellation of shares (note 13(d))              |   |           |   |            |  (79,743)  |   |   |  - |
|                                                                        | Share repurchases for future settlement of non-Treasury         |   |           |   |            |            |   |   |   |
|                                                                        |    RSUs (note 13(e))                             |   |           |   |            |  (15,239)  |   |   |  (14,481) |
| Cash flows from financing activities                                        |                                                            |   |           |   |  59,363    |            |   |  93,655 |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                |                                                            |   |           |   |            |            |   |   |
|   denominated in foreign currencies                               |                                                            |   |           |   |  (2,219)   |            |   |  (419) |
| Net decrease in cash and cash equivalents during the fiscal year            |                                                            |   |  (14,488) |   |            |  (32,205)  |
| Cash and cash equivalents, beginning of fiscal year                         |                                                            |   |           |   |  65,163    |            |   |  97,368 |
| Cash and cash equivalents, end of fiscal year                               |                                                            |   |           | $      |  50,675    |            | $      |  65,163 |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| Cash paid (included in cash flows from operating activities):               |                                                            |   |           |   |            |            |
|                                                                        | Interest                                                        |   |           |   | $               |  9,561     |   | $ |  2,108 |
|                                                                        | Income taxes, net of refunds                                    |   |           |   |            |  4,890     |   |   |  10,704 |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| Supplemental disclosure of cash flow information (note 21)                  |                                                            |   |           |   |            |            |   |   |
|                                                                        |                                                            |   |           |   |            |            |   |   |   |
| See accompanying notes to consolidated financial statements.                |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.58 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Statement of compliance: |
|-----|--------------------------|

| (b) | Basis of measurement: |
|-----|-----------------------|

|   | · | Derivative financial instruments which are measured at fair value; |
|--------|--------|--------------------------------------------------------------------|

|   | · | Assets held for sale which are stated at the lower of carrying amount and fair value less costs to sell; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Liabilities for cash-settled share-based payment arrangements which are measured at fair value; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | Employee benefit obligations related to defined benefit plans which are measured as the net total of the fair value of plan assets and the present value of the defined benefit obligations; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provisions for decommissioning, site restoration costs and onerous contracts which are measured at the present value of the expenditures expected to be required to settle the obligation; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Contingent consideration in connection with a business combination which is measured at fair value; and |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | Identifiable assets acquired and liabilities assumed in connection with a business combination which are initially measured at fair value. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Initial application of new or amended accounting standards: |
|-----|-------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.59 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Basis of consolidation: |
|-----|-------------------------|

|   | Subsidiary                                             | Jurisdiction of Incorporation | Ownershippercentage |
|--------|--------------------------------------------------------|-------------------------------|---------------------|
|   | Gildan Activewear SRL                                  | Barbados                      | 100%                |
|   | Gildan USA Inc.                                        | Delaware                      | 100%                |
|   | Gildan Yarns, LLC                                      | Delaware                      | 100%                |
|   | Gildan Honduras Properties, S. de R.L.                 | Honduras                      | 100%                |
|   | Gildan Apparel (Canada) LP                             | Ontario                       | 100%                |
|   | Gildan Hosiery Rio Nance, S. de R.L.                   | Honduras                      | 100%                |
|   | Gildan Activewear (UK) Limited                         | United Kingdom                | 100%                |
|   | Gildan Mayan Textiles, S. de R.L.                      | Honduras                      | 100%                |
|   | Gildan Activewear Honduras Textile Company, S. de R.L. | Honduras                      | 100%                |
|   | Gildan Activewear (Eden) Inc.                          | North Carolina                | 100%                |
|   | A.K.H., S. de R. L.                                    | Honduras                      | 100%                |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.60 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Foreign currency translation: |
|-----|-------------------------------|

| (c) | Cash and cash equivalents: |
|-----|----------------------------|

| (d) | Trade accounts receivable: |
|-----|----------------------------|

| (e) | Inventories: |
|-----|--------------|

| (f) | Assets held for sale: |
|-----|-----------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.61 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (g) | Property, plant and equipment: |
|-----|--------------------------------|

|   | Asset                      | Useful life   |
|--------|----------------------------|---------------|
|   | Buildings and improvements | 5 to 40 years |
|   | Manufacturing equipment    | 3 to 10 years |
|   | Other equipment            | 2 to 25 years |

| (h) | Intangible assets: |
|-----|--------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.62 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (h) | Intangible assets (continued): |
|-----|--------------------------------|

|   | Asset                                         | Useful life   |
|--------|-----------------------------------------------|---------------|
|   | Customer contracts and customer relationships | 7 to 20 years |
|   | License agreements                            | 7 to 10 years |
|   | Computer software                             | 4 to 7 years  |
|   | Non-compete agreements                        | 2 years       |
|   |                                          |          |

|   | · | it is technically feasible to complete the software product so that it will be available for use; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | management intends to complete the software product and use it; |
|--------|--------|-----------------------------------------------------------------|

|   | · | there is an ability to use the software product; |
|--------|--------|--------------------------------------------------|

|   | · | it can be demonstrated how the software product will generate probable future economic benefits; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | adequate technical, financial and other resources to complete the development and to use the software product are available; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | the expenditures attributable to the software product during its development can be reliably measured. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

| (i) | Goodwill: |
|-----|-----------|

| (j) | Impairment of non-financial assets: |
|-----|-------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.63 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (j) | Impairment of non-financial assets (continued): |
|-----|-------------------------------------------------|

| (k) | Financial instruments: |
|-----|------------------------|

|   | (i) | Financial assets measured at amortized cost |
|--------|-----|---------------------------------------------|

|   | · | The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and/or interest. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Financial assets measured at fair value |
|--------|------|-----------------------------------------|

| (iii)  | Financial liabilities measured at amortized cost |
|-------------|--------------------------------------------------|

| (iv)   | Financial liabilities measured at fair value |
|------------------|----------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.64 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (k) | Financial instruments (continued): |
|-----|------------------------------------|

|   | · | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3: inputs for the asset or liability that are not based on observable market data. |
|--------|--------|------------------------------------------------------------------------------------------|

| (l) | Derivative financial instruments and hedging relationships: |
|-----|-------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.65 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (l) | Derivative financial instruments and hedging relationships (continued): |
|-----|-------------------------------------------------------------------------|

| (m) | Accounts payable and accrued liabilities: |
|-----|-------------------------------------------|

| (n) | Long-term debt: |
|-----|-----------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.66 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (o) | Employee benefits: |
|-----|--------------------|

| (p) | Provisions: |
|-----|-------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.67 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (q) | Share capital: |
|-----|----------------|

| (r) | Dividends declared: |
|-----|---------------------|

| (s) | Revenue recognition: |
|-----|----------------------|

| (t) | Cost of sales and gross profit: |
|-----|---------------------------------|

| (u) | Selling, general and administrative expenses: |
|-----|-----------------------------------------------|

| (v) | Product introduction expenditures: |
|-----|------------------------------------|

| (w) | Restructuring and acquisition-related costs: |
|-----|----------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.68 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (x) | Cotton and cotton-based yarn procurements: |
|-----|--------------------------------------------|

| (y) | Government assistance: |
|-----|------------------------|

| (z) | Financial expenses (income): |
|-----|------------------------------|

| (aa) | Income taxes: |
|------|---------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.69 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (aa) | Income taxes (continued): |
|------|---------------------------|

| (bb) | Earnings per share: |
|------|---------------------|

| (cc) | Share based payments: |
|------|-----------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.70 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (cc) | Share based payments (continued): |
|------|-----------------------------------|

| (dd) | Leases: |
|------|---------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.71 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (ee) | Use of estimates and judgments: |
|------|---------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.72 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (ee) | Use of estimates and judgments (continued): |
|------|---------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.73 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.74 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|--------|--------|--------|---------------|--------------|--------|---------------|---------------|
| Assets acquired:                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |          |         |   |          |
|                                                                                                                                                                                                                                                                                                                                                          | Trade accounts receivable                           |   |   |   |   | $             |  14,446 |
|                                                                                                                                                                                                                                                                                                                                                          | Inventories                                         |   |   |   |   |          |         |   |          |  21,078  |
|                                                                                                                                                                                                                                                                                                                                                          | Prepaid expenses, deposits and other current assets |   |   |   |   |          |         |   |          |  69      |
|                                                                                                                                                                                                                                                                                                                                                          | Property, plant and equipment                       |   |   |   |   |          |         |   |          |  1,668   |
|                                                                                                                                                                                                                                                                                                                                                          | Intangible assets (1)                               |   |   |   |   |          |         |   |          |  62,300  |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |  99,561  |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |          |
| Liabilities assumed:                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |
|                                                                                                                                                                                                                                                                                                                                                          | Accounts payable and accrued liabilities            |   |   |   |   |          |         |   |          |  (2,064) |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |  (2,064) |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |          |
| Goodwill                                                                                                                                                                                                                                                                                                                                                      |                                                |   |   |   |   |          |         |   |  14,181  |
| Net assets acquired at fair value                                                                                                                                                                                                                                                                                                                             |                                                |   |   |   | $      |  111,678 |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |          |         |   |          |
| Cash consideration paid at closing                                                                                                                                                                                                                                                                                                                            |                                                |   |   |   |   |          |         |   |  103,300 |
| Settlement of pre-existing relationship                                                                                                                                                                                                                                                                                                                       |                                                |   |   |   |   |          |         |   |  8,378   |
|                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   | $      |  111,678 |
| (1) The intangible assets acquired are comprised of customer relationships in the amount of $25.0 million, which are being amortized on a straight line basis over their estimated useful lives of twelve years, and trademarks in the amount of $37.3 million, which are not being amortized as they are considered to be indefinite life intangible assets. |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.75 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------|---------------|----------------|
| Assets acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                |   |   |   |   |   |   |   |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Trade accounts receivable                           |   |   |   |   |   |   |   | $             |  10,504  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Inventories                                         |   |   |   |   |   |   |   |          |  28,214  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Prepaid expenses, deposits and other current assets |   |   |   |   |   |   |   |          |  685     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Property, plant and equipment                       |   |   |   |   |   |   |   |          |  5,951   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Intangible assets (1)                               |   |   |   |   |   |   |   |          |  50,892  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |  96,246   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |           |
| Liabilities assumed:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Accounts payable and accrued liabilities            |   |   |   |   |   |   |   |          |  (9,570) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Deferred income taxes                               |   |   |   |   |   |   |   |          |  (4,890) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |  (14,460) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |           |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                |   |   |   |   |   |   |   |  26,346  |
| Net assets acquired at fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                |   |   |   |   |   |   | $      |  108,132 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          |          |           |
| Cash consideration paid at closing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                |   |   |   |   |   |   |   |  101,732 |
| Fair value of contingent consideration                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                |   |   |   |   |   |   |   |  6,400   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |   |   |   |   |   |   |   |          | $             |  108,132  |
| (1) The intangible assets acquired are comprised of customer relationships in the amount of $33.0 million, which are being amortized on a straight line basis over their estimated useful lives of twenty years, license agreements in the amount of $2.3 million, which are being amortized on a straight line basis over their estimated useful lives of ten years and trademarks in the amount of $15.6 million, which are not being amortized as they are considered to be indefinite life intangible assets. |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.76 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|          |   |   |   | January 3, |   | October 5,   |
|---------------|--------|--------|--------|------------|--------|--------------|
|          |   |   |   | 2016       |   | 2014         |
|          |   |   |   |       |   |         |   |   |   |
| Bank balances |   |   |   |       | $      |  50,675 |   | $ |  65,099 |
| Term deposits |   |   |   |       |   |  -      |   |   |  64 |
|          |   |   |   |       | $      |  50,675 |   | $ |  65,163 |

|                            |   |   |   | January 3, |   | October 5,    |
|---------------------------------|--------|--------|--------|------------|--------|---------------|
|                            |   |   |   | 2016       |   | 2014          |
|                            |   |   |   |       |   |          |   |   |   |
| Trade accounts receivable       |   |   |   |       | $      |  310,733 |   | $ |  358,688 |
| Allowance for doubtful accounts |   |   |   |       |   |  (4,601) |   |   |  (4,423) |
|                            |   |   |   |       | $      |  306,132 |   | $ |  354,265 |

|                                   |   |   |   |   |   | 2015          |   |   | 2014          |
|----------------------------------------|--------|--------|--------|--------|--------|---------------|--------|--------|---------------|
|                                   |   |   |   |   |   | (15 months)   |   |   |          |
| Balance, beginning of fiscal year      |   |   |   |   | $      |  (4,423) |   | $      |  (3,667) |
| Bad debt expense                       |   |   |   |   |   |  (560)   |   |   |  (2,420) |
| Write-off of trade accounts receivable |   |   |   |   |   |  455     |   |   |  1,834   |
| Increase due to business acquisitions  |   |   |   |   |   |  (73)    |   |   |  (170)   |
| Balance, end of fiscal year            |   |   |   |   | $      |  (4,601) |   | $      |  (4,423) |

|                                      |   |   |   | January 3, |   | October 5,    |
|-------------------------------------------|--------|--------|--------|------------|--------|---------------|
|                                      |   |   |   | 2016       |   | 2014          |
|                                      |   |   |   |       |   |          |   |   |   |
| Raw materials and spare parts inventories |   |   |   |       | $      |  119,826 |   | $ |  98,767 |
| Work in progress                          |   |   |   |       |   |  54,737  |   |   |  58,658 |
| Finished goods                            |   |   |   |       |   |  676,470 |   |   |  621,982 |
|                                      |   |   |   |       | $      |  851,033 |   | $ |  779,407 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.77 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                       | Land   |         | Buildings and improvements |   | Manufacturing equipment |   | Other equipment |           | Assets not yet utilized in operations |   | Total         |
|----------------------------|--------|--------------|----------------------------|--------|-------------------------|--------|-----------------|----------------|---------------------------------------|--------|---------------|
|                       |   |         |                       |   |                    |
| 2015                       |   |         |                       |   |                    |
|                       |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |   |   |
| Cost                       |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |   |   |
| Balance, October 5, 2014   | $      |  45,541 |                       | $      |  314,823           |   | $               |  687,369  |                                  | $      |  129,688 |   | $ |  166,872 |   | $ |  1,344,293 |
| Additions                  |   |  20,146 |                       |   |  66,450            |   |            |  117,896  |                                  |   |  26,647  |   |   |  75,576 |   |   |  306,715 |
| Additions through business |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |   |   |
|   acquisitions   |   |  -      |                       |   |  -                 |   |            |  1,568    |                                  |   |  100     |   |   |  - |   |   |  1,668 |
| Transfers                  |   |  -      |                       |   |  58,671            |   |            |  107,024  |                                  |   |  1,177   |   |   |  (166,872) |   |   |  - |
| Disposals                  |   |  -      |                       |   |  (668)             |   |            |  (10,355) |                                  |   |  (1,120) |   |   |  - |   |   |  (12,143) |
| Balance, January 3, 2016   | $      |  65,687 |                       | $      |  439,276           |   | $               |  903,502  |                                  | $      |  156,492 |   | $ |  75,576 |   | $ |  1,640,533 |
|                       |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |   |   |
| Accumulated depreciation   |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |
| Balance, October 5, 2014   | $      |  -      |                       | $      |  86,611            |   | $               |  316,566  |                                  | $      |  67,390  |   | $ |  - |   | $ |  470,567 |
| Depreciation               |   |  -      |                       |   |  22,655            |   |            |  96,036   |                                  |   |  15,997  |   |   |  - |   |   |  134,688 |
| Disposals                  |   |  -      |                       |   |  (62)              |   |            |  (7,939)  |                                  |   |  (1,110) |   |   |  - |   |   |  (9,111) |
| Balance, January 3, 2016   | $      |  -      |                       | $      |  109,204           |   | $               |  404,663  |                                  | $      |  82,277  |   | $ |  - |   | $ |  596,144 |
| Carrying amount,           |   |         |                       |   |                    |   |            |           |                                  |   |          |   |   |   |   |   |   |
| January 3, 2016            | $      |  65,687 |                       | $      |  330,072           |   | $               |  498,839  |                                  | $      |  74,215  |   | $ |  75,576 |   | $ |  1,044,389 |

|                        | Land   |         | Buildings and improvements |   | Manufacturing equipment |   | Other equipment |          | Assets not yet utilized in operations |   | Total         |
|-----------------------------|--------|--------------|----------------------------|--------|-------------------------|--------|-----------------|---------------|---------------------------------------|--------|---------------|
|                        |   |         |                       |   |                    |
| 2014                        |   |         |                       |   |                    |
|                        |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |   |   |
| Cost                        |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |
| Balance, September 29, 2013 | $      |  39,922 |                       | $      |  249,230           |   | $               |  532,557 |                                  | $      |  114,628 |   | $ |  114,030 |   | $ |  1,050,367 |
| Additions                   |   |  5,759  |                       |   |  48,524            |   |            |  61,881  |                                  |   |  17,510  |   |   |  166,872 |   |   |  300,546 |
| Additions through business  |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |   |   |
|   acquisitions    |   |  -      |                       |   |  32                |   |            |  5,780   |                                  |   |  139     |   |   |  - |   |   |  5,951 |
| Transfers                   |   |  -      |                       |   |  17,369            |   |            |  95,848  |                                  |   |  813     |   |   |  (114,030) |   |   |  - |
| Disposals                   |   |  (140)  |                       |   |  (332)             |   |            |  (8,697) |                                  |   |  (3,402) |   |   |  - |   |   |  (12,571) |
| Balance, October 5, 2014    | $      |  45,541 |                       | $      |  314,823           |   | $               |  687,369 |                                  | $      |  129,688 |   | $ |  166,872 |   | $ |  1,344,293 |
|                        |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |   |   |
| Accumulated depreciation    |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |
| Balance, September 29, 2013 | $      |  -      |                       | $      |  72,465            |   | $               |  262,785 |                                  | $      |  59,248  |   | $ |  - |   | $ |  394,498 |
| Depreciation                |   |  -      |                       |   |  14,337            |   |            |  58,816  |                                  |   |  11,408  |   |   |  - |   |   |  84,561 |
| Disposals                   |   |  -      |                       |   |  (191)             |   |            |  (5,035) |                                  |   |  (3,266) |   |   |  - |   |   |  (8,492) |
| Balance, October 5, 2014    | $      |  -      |                       | $      |  86,611            |   | $               |  316,566 |                                  | $      |  67,390  |   | $ |  - |   | $ |  470,567 |
| Carrying amount,            |   |         |                       |   |                    |   |            |          |                                  |   |          |   |   |   |   |   |   |
|   October 5, 2014 | $      |  45,541 |                       | $      |  228,212           |   | $               |  370,803 |                                  | $      |  62,298  |   | $ |  166,872 |   | $ |  873,726 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.78 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| 2015                        |   | Customer contracts and customer relationships | Trademarks    | License agreements | Computer software |          | Non-compete agreements |         | Total        |
|-----------------------------|--------|-----------------------------------------------|---------------|--------------------|-------------------|---------------|------------------------|--------------|--------------|
|                        |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |   |   |   |
| Cost                        |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |   |   |   |
| Balance, October 5, 2014    |   | $                                             |  166,831 |               | $                 |  117,672 |                   | $            |  53,300 |   | $ |  36,931 |   | $ |  1,700 |   | $ |  376,434 |
| Additions                   |   |                                          |  -       |               |              |  -       |                   |         |  5,000  |   |   |  8,044 |   |   |  180 |   |   |  13,224 |
| Additions through business  |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |   |   |   |
|   acquisitions    |   |                                          |  25,000  |               |              |  37,300  |                   |         |  -      |   |   |  - |   |   |  - |   |   |  62,300 |
| Disposals                   |   |                                          |  -       |               |              |  -       |                   |         |  -      |   |   |  (3) |   |   |  - |   |   |  (3) |
| Balance, January 3, 2016    | $      |  191,831                                 |          | $                  |  154,972     |          | $                      |  58,300 |         | $ |  44,972 |   | $ |  1,880 |   | $ |  451,955 |
|                        |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |   |   |   |
| Accumulated amortization    |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |
| Balance, October 5, 2014    |   | $                                             |  38,007  |               | $                 |  -       |                   | $            |  26,349 |   | $ |  23,025 |   | $ |  1,700 |   | $ |  89,081 |
| Amortization                |   |                                          |  12,733  |               |              |  -       |                   |         |  9,791  |   |   |  3,578 |   |   |  22 |   |   |  26,124 |
| Disposals                   |   |                                          |  -       |               |              |  -       |                   |         |  -      |   |   |  (3) |   |   |  - |   |   |  (3) |
| Balance, January 3, 2016    | $      |  50,740                                  |          | $                  |  -           |          | $                      |  36,140 |         | $ |  26,600 |   | $ |  1,722 |   | $ |  115,202 |
| Carrying amount,            |   |                                          |          |               |              |          |                   |         |         |   |   |   |   |   |   |   |   |   |
|   January 3, 2016 | $      |  141,091                                 |          | $                  |  154,972     |          | $                      |  22,160 |         | $ |  18,372 |   | $ |  158 |   | $ |  336,753 |

| 2014                        |   | Customer contracts and customer relationships | Trademarks    | License agreements | Computer software |          | Non-compete agreements |   | Total        |
|-----------------------------|--------|-----------------------------------------------|---------------|--------------------|-------------------|---------------|------------------------|--------|--------------|
|                        |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |   |   |   |
| Cost                        |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |   |   |   |
| Balance, September 29, 2013 |   | $                                             |  133,866 |               | $                 |  102,045 |                   | $      |  51,000 |   | $ |  31,740 |   | $ |  1,700 |   | $ |  320,351 |
| Additions                   |   |                                          |  -       |               |              |  -       |                   |   |  -      |   |   |  6,150 |   |   |  - |   |   |  6,150 |
| Additions through business  |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |   |   |   |
|   acquisitions    |   |                                          |  32,965  |               |              |  15,627  |                   |   |  2,300  |   |   |  - |   |   |  - |   |   |  50,892 |
| Disposals                   |   |                                          |  -       |               |              |  -       |                   |   |  -      |   |   |  (959) |   |   |  - |   |   |  (959) |
| Balance, October 5, 2014    |   | $                                             |  166,831 |               | $                 |  117,672 |                   | $      |  53,300 |   | $ |  36,931 |   | $ |  1,700 |   | $ |  376,434 |
|                        |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |   |   |   |
| Accumulated amortization    |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |
| Balance, September 29, 2013 |   | $                                             |  30,451  |               | $                 |  -       |                   | $      |  18,689 |   | $ |  21,974 |   | $ |  1,700 |   | $ |  72,814 |
| Amortization                |   |                                          |  7,556   |               |              |  -       |                   |   |  7,660  |   |   |  2,009 |   |   |  - |   |   |  17,225 |
| Disposals                   |   |                                          |  -       |               |              |  -       |                   |   |  -      |   |   |  (958) |   |   |  - |   |   |  (958) |
| Balance, October 5, 2014    |   | $                                             |  38,007  |               | $                 |  -       |                   | $      |  26,349 |   | $ |  23,025 |   | $ |  1,700 |   | $ |  89,081 |
| Carrying amount,            |   |                                          |          |               |              |          |                   |   |         |   |   |   |   |   |   |   |   |   |
|   October 5, 2014 |   | $                                             |  128,824 |               | $                 |  117,672 |                   | $      |  26,951 |   | $ |  13,906 |   | $ |  - |   | $ |  287,353 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.79 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                              |   |   | 2015   |          | 2014   |
|-----------------------------------|--------|--------|--------|---------------|--------|
|                              |   |   |   |          |   |   |   |
| Balance, beginning of fiscal year |   |   | $      |  176,445 |   | $ |  150,099 |
| Goodwill acquired (note 5)        |   |   |   |  14,181  |   |   |  26,346 |
| Balance, end of fiscal year       |   |   | $      |  190,626 |   | $ |  176,445 |
|                              |   |   |   |          |   |   |   |

|             |       |   |   |   | January 3, |     | October 5,    |
|------------------|------------|--------|--------|--------|------------|----------|---------------|
|             |       |   |   |   | 2016       |     | 2014          |
|             |       |   |   |   |       |     |          |   |   |   |
| Branded Apparel: |       |   |   |   |       |     |          |   |   |
|             | Goodwill   |   |   |   |       | $        |  170,649 |   | $ |  170,649 |
|             | Trademarks |   |   |   |       |     |  112,972 |   |   |  112,972 |
|             |       |   |   |   |       |  $  |  283,621 |   |   |  283,621 |
|             |       |   |   |   |       |     |          |   |   |   |
| Printwear:       |       |   |   |   |       |     |          |   |   |
|             | Goodwill   |   |   |   |       |   $ |  19,977  |   |   $ |  5,796 |
|             | Trademarks |   |   |   |       |     |  42,000  |   |   |  4,700 |
|             |       |   |   |   |       | $        |  61,977  |   | $ |  10,496 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.80 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                    |   |   | January 3, |   | October 5,   |
|---------------------------------------------------------|--------|--------|------------|--------|--------------|
|                                                    |   |   | 2016       |   | 2014         |
|                                                    |   |   |       |   |         |   |   |   |
| Employee benefit obligation - Statutory severance       |   |   |       |   |         |   |   |   |
|   and pre-notice                              |   |   |       | $      |  8,882  |   | $ |  17,556 |
| Employee benefit obligation - Defined contribution plan |   |   |       |   |  2,185  |   |   |  2,009 |
| Provisions                                              |   |   |       |   |  20,630 |   |   |  17,926 |
| Contingent consideration (note 14(a))                   |   |   |       |   |  5,919  |   |   |  5,959 |
|                                                    |   |   |       | $      |  37,616 |   | $ |  43,450 |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   | January 3,     |   |   | October 5,     |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|----------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   | 2016           |   |   | 2014           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   | (15 months)    |   |   |           |
|   | Obligation, beginning of fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   | $      |  17,556   |   | $      |  10,935   |
|   | Service cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |  13,473   |   |   |  9,312    |
|   | Interest cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |  7,268    |   |   |  5,232    |
|   | Actuarial loss (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |  10,000   |   |   |  3,614    |
|   | Pre-notice obligation reduction (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |  (11,426) |   |   |  -        |
|   | Foreign exchange gain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |  (1,897)  |   |   |  (880)    |
|   | Benefits paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |  (26,092) |   |   |  (10,657) |
|   | Obligation, end of fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   | $      |  8,882    |   | $      |  17,556   |
|   | (1) The actuarial loss is due to changes in the actuarial assumptions used to determine the statutory severance and pre-notice obligations as at January 3, 2016.(2) The reduction in the pre-notice obligation is due to the impact of program changes relating to the Company’s pre-notice obligations for active employees located in Central America, to align with statutory requirements. As a result of these program changes, pre-notice costs for employees in Central America will now be recognized when an employer-initiated termination occurs. Significant assumptions for the calculation of the statutory severance and pre-notice obligations included the use of a discount rate of between 10% and 10.5% (2014 – between 10% and 12%) and rates of compensation increases between 6.5% and 8% (2014 – between 5% and 8%). A 1% increase in the discount rates would result in a corresponding decrease in the statutory severance and pre-notice obligations of $3.1 million, and a 1% decrease in the discount rates would result in a corresponding increase in the statutory severance and pre-notice obligations of $3.6 million. A 1% increase in the rates of compensation increases used would result in a corresponding increase in the statutory severance and pre-notice obligations of $3.7 million, and a 1% decrease in the rates of compensation increases used would result in a corresponding decrease in the statutory severance and pre-notice obligations of $3.2 million. |
|   |
|   |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.81 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Defined contribution plan: |
|-----|----------------------------|

| (c) | Provisions: |
|-----|-------------|

|   |                                       |   | Decommissioning   |         |       |   |        |   |
|--------|--------------------------------------------|--------|-------------------|--------------|------------|--------|-------------|--------|
|   |                                       |   | and site          |         | Lease exit |   |        |   |
|   |                                       |   | restoration costs |         | costs      |   |        | Total  |
|   |                                       |   |              |         |       |   |        |   |   |   |
|   | Balance, October 5, 2014                   |   | $                 |  16,144 |       | $      |  1,782 |   | $ |  17,926 |
|   | Provisions made during the fiscal year     |   |              |  992    |       |   |  1,720 |   |   |  2,712 |
|   | Provisions utilized during the fiscal year |   |              |  -      |       |   |  (417) |   |   |  (417) |
|   | Accretion of interest                      |   |              |  409    |       |   |  -     |   |   |  409 |
|   | Balance, January 3, 2016                   |   | $                 |  17,545 |       | $      |  3,085 |   | $ |  20,630 |

|   | Provisions include estimated future costs of decommissioning and site restoration for certain assets located at the Company’s textile and sock facilities and a distribution centre in the U.S. for which the timing of settlement is uncertain, but has been estimated to be in excess of twenty years. The lease exit costs were incurred in connection with the integration of acquired businesses.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Shareholder rights plan: |
|-----|--------------------------|

| (b) | Accumulated other comprehensive income (“AOCI”): |
|-----|--------------------------------------------------------------|

| (c) | Share capital: |
|-----|----------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.82 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (d) | Normal course issuer bid: |
|-----|---------------------------|

| (e) | Common shares purchased as settlement for non-Treasury RSUs: |
|-----|--------------------------------------------------------------|

|   |                       |      |        | 2015   |        | 2014           |
|--------|----------------------------|-----------|-------------|--------|-------------|----------------|
|   |                       |      |        | Shares |        |           | Amount |   |   | Average cost |   | Shares |   |   | Amount |   |   | Average Cost |
|   |                       |      |        |   |        |           |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance, beginning of year |  294 |        | $      |  7,055 |           | $ |  24.00 |   |  566 |   | $ |  9,747 |   | $ |  17.22 |
|   | Purchased                  |      |  560   |   |        |  15,239   |   |   |  27.21 |   |  600 |   |   |  14,481 |   |   |  24.14 |
|   | Distributed                |      |  (585) |   |        |  (14,830) |   |   |  25.35 |   |  (872) |   |   |  (17,173) |   |   |  19.69 |
|   | Balance, end of year       |      |  269   |   | $           |  7,464    |   | $ |  27.75 |   |  294 |   | $ |  7,055 |   | $ |  24.00 |

| (f) | Contributed surplus: |
|-----|----------------------|

|   | The contributed surplus account is used to record the initial value of equity-settled share based compensation transactions. Upon the exercise of stock options and the vesting of Treasury restricted share units, the corresponding amounts previously credited to contributed surplus are transferred to share capital. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.83 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Financial instruments – carrying amounts and fair values: |
|-----|-----------------------------------------------------------------|

|   |                                                                                    |   | January 3, |          | October 5, |
|--------|-----------------------------------------------------------------------------------------|--------|------------|---------------|------------|
|   |                                                                                    |   | 2016       |          | 2014       |
|   |                                                                                    |   |       |          |       |   |   |
|   | Financial assets                                                                        |   |       |          |       |   |   |
|   | Amortized cost:                                                                         |   |       |          |       |   |   |
|   |     Cash and cash equivalents                                       |   | $          |  50,675  |       | $ |  65,163 |
|   |     Trade accounts receivable                                       |   |       |  306,132 |       |   |  354,265 |
|   |     Other current assets included in prepaid expenses, deposits and |   |       |          |       |   |   |
|   |       other current assets                                |   |       |  25,140  |       |   |  17,824 |
|   |     Long-term non-trade receivables included in other               |   |       |          |       |   |   |
|   |       non-current assets                                  |   |       |  2,372   |       |   |  4,008 |
|   | Derivative financial instruments designated as effective hedging                        |   |       |          |       |   |   |
|   |   instruments included in prepaid expenses, deposits and other                |   |       |          |       |   |   |
|   |   current assets                                                              |   |       |  4,034   |       |   |  920 |
|   | Derivative financial instruments included in prepaid expenses,                          |   |       |          |       |   |   |
|   |   deposits and other current assets - total return swap                       |   |       |  51      |       |   |  - |
|   |                                                                                    |   |       |          |       |   |   |
|   | Financial liabilities                                                                   |   |       |          |       |   |   |
|   | Amortized cost:                                                                         |   |       |          |       |   |   |
|   |     Accounts payable and accrued liabilities                        |   | $          |  230,739 |       | $ |  361,377 |
|   |     Long-term debt - bearing interest at variable rates             |   |       |  375,000 |       |   |  157,000 |
|   | Derivative financial instruments designated as effective hedging                        |   |       |          |       |   |   |
|   |   instruments included in accounts payable and accrued liabilities            |   |       |  1,529   |       |   |  7,335 |
|   | Contingent consideration included in other non-current liabilities                      |   |       |  5,919   |       |   |  5,959 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.84 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Financial instruments – carrying amounts and fair values (continued): |
|-----|-----------------------------------------------------------------------------|

| (b) | Derivative financial instruments – hedge accounting: |
|-----|------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.85 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   |                                |             |           |           |       |         |   |                |                    | Carrying and fair value |   | Maturity    |
|--------|-------------------------------------|------------------|----------------|----------------|------------|--------------|--------|---------------------|-------------------------|-------------------------|--------|-------------|
|   |                                |             | Notional       |           |       |         |   |                |                    | Prepaid                 |   | Accounts    |   |   |   |
|   |                                |             |  foreign  |           |       |         |   |                |                    | expenses,               |   | payable     |   |   |   |
|   |                                |             |  currency | Average        |       | Notional     |   | deposits and        |                    | and                     |   |        |   |
|   |                                |             |  amount   |  exchange |       |  U.S. $ |   |  other current |                    | accrued                 |   | 0 to 12     |
|   |                                | equivalent       | rate           |           | equivalent |         | assets |                |   liabilities |                    | months |
|   |                                |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |   |   |   |
|   | Cash flow hedges:                   |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |   |   |
|   | Forward foreign exchange contracts: |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |
|   |                                |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |   |   |   |
|   |                                | Sell GBP/Buy USD |           |  6,856    |       |  1.5411 |   |                |  10,566            |                    |   |  425   |   |   |  - |   |   |  425 |
|   |                                | Sell EUR/Buy USD |           |  41,726   |       |  1.1321 |   |                |  47,240            |                    |   |  1,439 |   |   |  (35) |   |   |  1,404 |
|   |                                | Sell CAD/Buy USD |           |  39,298   |       |  0.7745 |   |                |  30,435            |                    |   |  2,003 |   |   |  - |   |   |  2,003 |
|   |                                | Buy CAD/Sell USD |           |  29,878   |       |  0.7725 |   |                |  23,080            |                    |   |  -     |   |   |  (1,450) |   |   |  (1,450) |
|   |                                | Sell AUD/Buy USD |           |  6,600    |       |  0.7215 |   |                |  4,762             |                    |   |  -     |   |   |  (17) |   |   |  (17) |
|   |                                |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |   |   |   |
|   | Fair value hedges:                  |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |   |   |
|   | Forward foreign exchange contracts: |             |           |           |       |         |   |                |                    |                    |   |        |   |   |   |
|   |                                | Buy CHF/Sell USD |           |  202      |       |  1.1436 |   |                |  231               |                    |   |  -     |   |   |  (27) |   |   |  (27) |
|   |                                |             |           |           |       |         |   | $                   |  116,314           |                    | $      |  3,867 |   | $ |  (1,529) |   | $ |  2,338 |

|   | The following table summarizes the Company’s commodity option contracts outstanding as at January 3, 2016: |
|--------|------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                             |   |   |   |   | Carrying and fair value |   |   | Maturity |
|   |                                                                                                             |   |   | Notional |   |   |   | Prepaid expenses, |   |   |   |   |
|   |                                                                                                             |   |   | amount |   |   |   | deposits and other |   | 0 to 12 |   | 12 to 18 |
|   |                                                                                                             |   | (pounds) |   |   |   | current assets |   | months |   | months |
|   |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Cash flow hedges:                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Collar contracts                                                                                                 |   |  162,300 |   |   |   | $ |  167 |   | $ |  (176) |   | $ |  343 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.86 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Derivative financial instruments – hedge accounting (continued): |
|-----|------------------------------------------------------------------------|

|   |                   |               |               |            |        |               |               |   |               |            |      |   | Change in       |    |                | Cash   |
|--------|------------------------|--------------------|--------------------|-----------------|-------------|--------------------|--------------------|--------|--------------------|-----------------|-----------|--------|-----------------|---------|---------------------|--------|
|   |                   |               |               |            |        |               |               |   | Accumulated amount |            |      |   | value used      |    |                | flow   |
|   |                   |               | Carrying amount of |            |        | of FVH adjustments |               |   |               | for calculating |      |   | hedge           |
|   |                   |               |               | the hedged item |        |               | on the hedged item |   |               |            | hedge     |   |            | reserve |
|   |                   |               | Assets             |            | Liabilities |               | Assets             |   | Liabilities        |            | Line item |   | ineffectiveness |    | (AOCI)              |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |   |
|   | Cash flow hedges:      |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |   |
|   | Foreign currency risk: |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |
|   |                   | Forecast sales     |               |  -         |        |               |  -            |   |               |  -         |      |   |  -         |    |                |   | $ |  3,197 |   | $ |  (3,197) |
|   |                   | Forecast expenses  |               |  -         |        |               |  -            |   |               |  -         |      |   |  -         |    |                |   |   |  (1,450) |   |   |  1,450 |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |   |
|   | Commodity risk:        |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |
|   |                   | Forecast purchases |               |  -         |        |               |  -            |   |               |  -         |      |   |  -         |    |                |   |   |  (654) |   |   |  654 |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |   |
|   | Fair value hedges:     |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |   |
|   | Foreign currency risk: |               |               |            |        |               |               |   |               |            |      |   |            |    |                |   |   |   |   |   |
|   |                   | Firm commitment    | $                  |  304       |        |               |  -            |   | $                  |  304       |      |   |  -         |    | Prepaid             |   |   |  (304) |   |   |  - |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    | expenses,           |   |   |   |   |   |   |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    | deposits and        |   |   |   |   |   |   |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    |  other current |   |   |   |   |   |   |
|   |                   |               |               |            |        |               |               |   |               |            |      |   |            |    | assets              |   |   |   |   |   |   |

| (c) | Financial expenses, net: |
|-----|--------------------------|

|   |                                                                     |   |   | 2015        |         | 2014   |
|--------|--------------------------------------------------------------------------|--------|--------|-------------|--------------|--------|
|   |                                                                     |   |   |        | (15 months)  |   |   |   |
|   | Interest expense on financial liabilities recorded at amortized cost (1) |   | $      |  8,649 |         | $      |  2,061 |
|   | Bank and other financial charges                                         |   |   |  4,747 |         |   |  3,299 |
|   | Interest accretion on discounted provisions                              |   |   |  409   |         |   |  323 |
|   | Foreign exchange loss (gain)                                             |   |   |  3,992 |         |   |  (2,786) |
|   |                                                                     |   |   | $           |  17,797 |   | $ |  2,897 |
|   | (1) Net of capitalized borrowing costs of $1.0 million (2014 - nil).     |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.87 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (d) | Hedging components of other comprehensive income (“OCI”): |
|-----|-----------------------------------------------------------------------|

|   |                                                                             |   |   | 2015          |   |   | 2014          |
|--------|----------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|---------------|
|   |                                                                             |   |   | (15 months)   |   |   |          |
|   | Net gain (loss) on derivatives designated as cash flow hedges:                   |   |   |          |   |   |
|   |       Foreign currency risk                        |   | $      |  3,631   |   | $      |  (1,307) |
|   |       Commodity price risk                         |   |   |  (836)   |   |   |  (8,158) |
|   |                                                                             |   |   |          |   |   |          |
|   | Income taxes                                                                     |   |   |  (36)    |   |   |  95      |
|   |                                                                             |   |   |          |   |   |          |
|   | Amounts reclassified from OCI to property, plant and equipment,                  |   |   |          |   |   |          |
|   |   related to foreign currency risk                                     |   |   |  -       |   |   |  (991)   |
|   |                                                                             |   |   |          |   |   |          |
|   | Amounts reclassified from OCI to inventory, related to commodity                 |   |   |          |   |   |          |
|   |   price risk                                                           |   |   |  8,355   |   |   |  -       |
|   |                                                                             |   |   |          |   |   |          |
|   | Amounts reclassified from OCI to net earnings, related to foreign                |   |   |          |   |   |          |
|   |   currency risk, and included in:                                      |   |   |          |   |   |          |
|   |       Net sales                                    |   |   |  (2,155) |   |   |  3,272   |
|   |       Selling, general and administrative expenses |   |   |  472     |   |   |  113     |
|   |       Financial expenses, net                      |   |   |  (629)   |   |   |  (67)    |
|   |       Income taxes                                 |   |   |  23      |   |   |  (33)    |
|   | Hedging gain (loss)                                                              |   | $      |  8,825   |   | $      |  (7,076) |

|   | The change in the time value element of option contracts designated as cash flow hedges to reduce the exposure in movements of commodity prices resulted in a loss of $2.2 million in fiscal 2015. The change in forward element of derivatives designated as cash flow and fair value hedges to reduce foreign currency risk was not significant for fiscal 2015. As at January 3, 2016, accumulated other comprehensive income of $1.1 million consisted of net deferred gains on forward foreign exchange contracts and commodity option contracts designated as cash flow hedges. Approximately $0.8 million of net gains presented in accumulated other comprehensive income are expected to be reclassified to net earnings within the next twelve months. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.88 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Employee share purchase plans: |
|-----|--------------------------------|

| (b) | Stock options and restricted share units: |
|-----|-------------------------------------------|

|                                                                                                                              |       |   |   |   |        |          |   | Weighted average |
|-----------------------------------------------------------------------------------------------------------------------------------|------------|--------|--------|--------|-------------|---------------|--------|------------------|
|                                                                                                                              |       |   |   |   |        |          |   |             | exercise price |
|                                                                                                                              |       |   |   |   |        | Number        |   | (CA$)            |
|                                                                                                                              |       |   |   |   |        |          |   |             |   |
| Stock options outstanding, September 29, 2013                                                                                     |       |   |   |   |  2,092 |          | $      | 12.94            |
| Changes in outstanding stock options:                                                                                             |       |   |   |   |        |          |   |             |
|                                                                                                                              | Granted    |   |   |   |        |  346     |   |             | 24.22 |
|                                                                                                                              | Exercised  |   |   |   |        |  (236)   |   |             | 15.18 |
| Stock options outstanding, October 5, 2014                                                                                        |       |   |   |   |  2,202 |          |   | 14.47            |
| Changes in outstanding stock options:                                                                                             |       |   |   |   |        |          |   |             |
|                                                                                                                              | Granted(1) |   |   |   |        |  1,339   |   |             | 36.53 |
|                                                                                                                              | Exercised  |   |   |   |        |  (1,462) |   |             | 12.51 |
|                                                                                                                              | Forfeited  |   |   |   |        |  (184)   |   |             | 32.85 |
| Stock options outstanding, January 3, 2016                                                                                        |       |   |   |   |  1,895 |          | $      | 29.78            |
| (1) Fiscal 2015 includes an extra grant as a result of an additional three months in the fiscal year.                             |
| All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |
|                                                                                                                              |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.89 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Stock options and restricted share units (continued): |
|-----|-------------------------------------------------------|

|   |                    |   |   |   |   |   | 2015       |   |   | 2014       |
|--------|-------------------------|--------|--------|--------|--------|--------|------------|--------|--------|------------|
|   |                    |   |   |   |   |   |       |   |   |       |
|   | Exercise price          |   |   |   |   |   | $ 36.53    |   |   | $ 24.22    |
|   | Risk-free interest rate |   |   |   |   |   | 1.19%      |   |   | 1.87%      |
|   | Expected volatility     |   |   |   |   |   | 31.41%     |   |   | 50.65%     |
|   | Expected life           |   |   |   |   |   | 6.04 years |   |   | 5.25 years |
|   | Expected dividend yield |   |   |   |   |   | 0.86%      |   |   | 0.77%      |

|   |                  |   | Options issued and outstanding |   | Options exercisable    |
|--------|-----------------------|--------|--------------------------------|--------|------------------------|
|   |                  |   |                           |   | Remaining              |   |   |
|   | Exercise prices (CA$) |   | Number                         |   | contractual life (yrs) |   | Number |
|   |                  |   |                           |   |                   |   |   |
|   | $ 10.06               |   | 35                             |   |  1                |   |  35 |
|   | $ 13.60               |   | 145                            |   |  3                |   |  56 |
|   | $ 14.32               |   | 28                             |   |  2                |   |  28 |
|   | $ 15.59               |   | 236                            |   |  4                |   |  44 |
|   | $ 24.22               |   | 297                            |   |  5                |   |  38 |
|   | $ 30.46               |   | 296                            |   |  6                |   |  - |
|   | $ 38.01               |   | 575                            |   |  7                |   |  - |
|   | $ 42.27               |   | 283                            |   |  10               |   |  - |
|   |                  |   | 1,895                          |   |                   |   |  201 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.90 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Stock options and restricted share units (continued): |
|-----|-------------------------------------------------------|

|   |                                                                                                                              |                                          |   |   |   |   |        |        |   | Weighted average    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|--------|--------|--------|--------|-------------|-------------|--------|---------------------|
|   |                                                                                                                              |                                          |   |   |   |   |        | Number      |   | fair value per unit |
|   |                                                                                                                              |                                          |   |   |   |   |        |        |   |                |   |
|   | Treasury RSUs outstanding, September 29, 2013                                                                                     |                                          |   |   |   |   |  1,544 |        | $      |  11.32         |
|   | Changes in outstanding Treasury RSUs:                                                                                             |                                          |   |   |   |   |        |        |   |                |
|   |                                                                                                                              | Granted                                       |   |   |   |   |        |  20    |   |                |  25.97 |
|   |                                                                                                                              | Granted for dividends declared                |   |   |   |   |        |  9     |   |                |  26.44 |
|   |                                                                                                                              | Settled through the issuance of common shares |   |   |   |   |        |  (846) |   |                |  10.77 |
|   |                                                                                                                              | Forfeited                                     |   |   |   |   |        |  (62)  |   |                |  17.65 |
|   | Treasury RSUs outstanding, October 5, 2014                                                                                        |                                          |   |   |   |   |  665   |        |   |  12.07         |
|   | Changes in outstanding Treasury RSUs:                                                                                             |                                          |   |   |   |   |        |        |   |                |
|   |                                                                                                                              | Granted                                       |   |   |   |   |        |  128   |   |                |  30.60 |
|   |                                                                                                                              | Granted for dividends declared                |   |   |   |   |        |  4     |   |                |  29.92 |
|   |                                                                                                                              | Settled through the issuance of common shares |   |   |   |   |        |  (428) |   |                |  9.81 |
|   |                                                                                                                              | Forfeited                                     |   |   |   |   |        |  (77)  |   |                |  25.25 |
|   | Treasury RSUs outstanding, January 3, 2016                                                                                        |                                          |   |   |   |   |  292   |        | $      |  20.25         |
|   | All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |

|   |                                                                                                                              |                           |   |   |   |   | 2015   |   |   | 2014   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                              |                           |   |   |   |   |   |   |   |   |
|   | Non-Treasury RSUs outstanding, beginning of fiscal year                                                                           |                           |   |   |   | 768    |   |   | 1,138  |
|   | Changes in outstanding non-Treasury RSUs:                                                                                         |                           |   |   |   |   |   |   |   |
|   |                                                                                                                              | Granted(1)                     |   |   |   |   | 660    |   |   | 338    |
|   |                                                                                                                              | Granted for performance        |   |   |   |   | 158    |   |   | 204    |
|   |                                                                                                                              | Granted for dividends declared |   |   |   |   | 12     |   |   | 10     |
|   |                                                                                                                              | Settled                        |   |   |   |   | (594)  |   |   | (886)  |
|   |                                                                                                                              | Forfeited                      |   |   |   |   | (51)   |   |   | (36)   |
|   | Non-Treasury RSUs outstanding, end of fiscal year                                                                                 |                           |   |   |   | 953    |   |   | 768    |
|   | (1) Fiscal 2015 includes an extra grant as a result of an additional three months in the fiscal year.                             |
|   | All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.91 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (b) | Stock options and restricted share units (continued): |
|-----|-------------------------------------------------------|

|   | The compensation expense included in selling, general and administrative expenses and cost of sales, in respect of the non-Treasury RSUs, for fiscal 2015 was $15.9 million (2014 - $13.6 million). As at January 3, 2016, 683,326 non-Treasury RSUs (October 5, 2014 – 474,354) were expected to be settled in cash, for which a recognized amount of $6.2 million (October 5, 2014 - $6.1 million) is included in accounts payable and accrued liabilities, based on a fair value per non-Treasury RSU of $28.42 (October 5, 2014 - $27.06). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Deferred share unit plan: |
|-----|---------------------------|

|   |                                       |   |   |   |   |   | 2015       |   |   | 2014       |
|--------|--------------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|------------|
|   |                                       |   |   |   |   |   |       |   |   |       |
|   | DSUs outstanding, beginning of fiscal year |   |   |   |   |   |  271  |   |   |  243  |
|   | Granted                                    |   |   |   |   |   |  41   |   |   |  36   |
|   | Granted for dividends declared             |   |   |   |   |   |  3    |   |   |  2    |
|   | Redeemed                                   |   |   |   |   |   |  (89) |   |   |  (10) |
|   | DSUs outstanding, end of fiscal year       |   |   |   |   |   |  226  |   |   |  271  |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.92 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| 16. SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES: |
|-------------------------------------------------------------------|

| (a) | Selling, general and administrative expenses: |
|-----|-----------------------------------------------|

|   |                    |   |   |   | 2015   |          | 2014          |
|--------|-------------------------|--------|--------|--------|--------|---------------|---------------|
|   |                    |   |   |   |   |          | (15 months)   |   |   |   |
|   | Selling expenses        |   |   |   |   | $             |  139,157 |   | $ |  104,680 |
|   | Administrative expenses |   |   |   |   |          |  143,292 |   |   |  107,543 |
|   | Distribution expenses   |   |   |   |   |  105,514 |          |   |  73,792 |
|   |                    |   |   |   |   | $             |  387,963 |   | $ |  286,015 |

| (b) | Employee benefit expenses: |
|-----|----------------------------|

|   |                                                   |   |   | 2015   |          | 2014   |
|--------|--------------------------------------------------------|--------|--------|--------|---------------|--------|
|   |                                                   |   |   |   | (15 months)   |   |   |   |
|   | Salaries, wages and other short-term employee benefits |   |   | $      |  520,462 |   | $ |  362,724 |
|   | Share-based payments                                   |   |   |   |  20,537  |   |   |  18,618 |
|   | Post-employment benefits                               |   |   |   |  17,338  |   |   |  19,698 |
|   |                                                   |   |   | $      |  558,337 |   | $ |  401,040 |

| (c) | Lease expenses: |
|-----|-----------------|

|   | During the year ended January 3, 2016 an amount of $28.9 million was recognized in the consolidated statement of earnings and comprehensive income relating to operating leases (2014 - $19.9 million). As at January 3, 2016, the future minimum lease payments under non-cancellable leases were as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                  |   |   |   |   |   | January 3, |
|--------|-----------------------|--------|--------|--------|--------|--------|------------|
|   |                  |   |   |   |   |   |       |   |   | 2016 |
|   |                  |   |   |   |   |   |       |   |   |   |
|   | Within 1 year         |   |   |   |   |   |       |   | $ |  15,499 |
|   | Between 1 and 5 years |   |   |   |   |   |       |   |   |  27,850 |
|   | More than 5 years     |   |   |   |   |   |       |   |   |  18,176 |
|   |                  |   |   |   |   |   |       |   | $ |  61,525 |

| (d) | Government assistance: |
|-----|------------------------|

|   | During the year ended January 3, 2016 an amount of $8.4 million was recognized in the consolidated statement of earnings and comprehensive income relating to government assistance for yarn production (2014 - $3.2 million). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   |   |   | 2015   |   | 2014         |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------------|
|                                               |   |   |   |   |   | (15 months)  |   |   |   |
| Employee termination and benefit costs             |   |   |   |   | $      |  4,976  |   | $ |  521 |
| Loss on settlement on wind-up of defined benefit   |   |   |   |   |   |         |   |   |   |
|   pension plan                           |   |   |   |   |   |  -      |   |   |  1,898 |
| Exit, relocation and other costs                   |   |   |   |   |   |  8,545  |   |   |  410 |
| Gains on disposal of assets held for sale          |   |   |   |   |   |  (833)  |   |   |  (345) |
| Remeasurement of contingent consideration in       |   |   |   |   |   |         |   |   |   |
|   connection with a business acquisition |   |   |   |   |   |  1,118  |   |   |  - |
| Acquisition-related transaction costs              |   |   |   |   |   |  1,102  |   |   |  763 |
|                                               |   |   |   |   | $      |  14,908 |   | $ |  3,247 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.93 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                |                                                              |   |   | 2015           |           | 2014   |
|-----------------------------------------------------|-------------------------------------------------------------------|--------|--------|----------------|----------------|--------|
|                                                |                                                              |   |   |           | (15 months)    |   |   |   |
| Earnings before income taxes                        |                                                              |   | $      |  309,440  |           | $      |  366,524 |
| Applicable tax rate                                 |                                                              |   |   | 26.9%          |           |   | 26.9% |
| Income taxes at applicable statutory rate           |                                                              |   |   |  83,085   |           |   |  98,412 |
|                                                |                                                              |   |   |           |           |   |   |   |
| (Decrease) increase in income taxes resulting from: |                                                              |   |   |           |           |   |   |
|                                                | Effect of different tax rates on earnings of foreign subsidiaries |   |   |  (76,150) |           |   |  (89,258) |
|                                                | Income tax recovery related to prior taxation years               |   |   |  (5,086)  |           |   |  (1,597) |
|                                                | Non-recognition of tax benefits related to tax losses             |   |   |           |           |   |   |   |
|                                                |  and temporary differences                                   |   |   |           |  14,341   |   |   |  - |
|                                                | Effect of non-deductible expenses and other                       |   |   |           |  (11,664) |   |   |  (585) |
| Total income tax expense                            |                                                              |   | $      |  4,526    |           | $      |  6,972 |
| Average effective tax rate                          |                                                              |   |   | 1.5%           |           |   | 1.9% |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.94 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                  |                                                         |   |        |   |    | 2015         |          | 2014          |
|-----------------------------------------------------------------------|--------------------------------------------------------------|--------|-------------|--------|---------|--------------|---------------|---------------|
|                                                                  |                                                         |   |        |   |    |         | (15 months)   |          |   |   |
| Current income taxes, includes a recovery of $3,904                   |                                                         |   |        |   |    |         |
|   (2014 - expense of $430) relating to prior taxation years |                                                         | $      |  7,036 |   | $       |  10,052 |
|                                                                  |                                                         |   |        |   |    |         |          |          |   |   |
| Deferred income taxes:                                                |                                                         |   |        |   |    |         |          |          |   |
|                                                                  | Origination and reversal of temporary differences            |   |        |   |    |         |  (2,510) |          |   |  (1,053) |
|                                                                  | Recognition of tax benefits relating to prior taxation years |   |        |   |  - |         |          |  (2,027) |
|                                                                  |                                                         |   |        |   |    |         |  (2,510) |          |   |  (3,080) |
|                                                                  |                                                         |   |        |   |    |         |          |          |   |   |
| Total income tax expense                                              |                                                         |   |        |   | $       |  4,526  |          | $             |  6,972 |

|                      |                                 |   |   |   | January 3, |           | October 5,     |
|---------------------------|--------------------------------------|--------|--------|--------|------------|----------------|----------------|
|                      |                                 |   |   |   |       |           | 2016           |   |   | 2014 |
|                      |                                 |   |   |   |       |           |           |   |   |   |
| Deferred tax assets:      |                                 |   |   |   |       |           |           |   |   |
|                      | Non-capital losses                   |   |   |   |       | $              |  65,914   |   | $ |  62,909 |
|                      | Non-deductible reserves and accruals |   |   |   |       |           |  46,824   |   |   |  24,999 |
|                      | Property, plant and equipment        |   |   |   |       |           |  4,866    |   |   |  7,335 |
|                      | Other items                          |   |   |   |       |           |  4,091    |   |   |  6,301 |
|                      |                                 |   |   |   |       |           |  121,695  |   |   |  101,544 |
|                      | Unrecognized deferred tax assets     |   |   |   |       |           |  (25,372) |   |   |  (14,954) |
| Deferred tax assets       |                                 |   |   |   | $          |  96,323   |           | $ |  86,590 |
|                      |                                 |   |   |   |       |           |           |   |   |   |
| Deferred tax liabilities: |                                 |   |   |   |       |           |           |   |   |
|                      | Property, plant and equipment        |   |   |   |       | $              |  (18,872) |   | $ |  (4,896) |
|                      | Intangible assets                    |   |   |   |       |           |  (74,658) |   |   |  (82,043) |
| Deferred tax liabilities  |                                 |   |   |   | $          |  (93,530) |           | $ |  (86,939) |
| Deferred income taxes     |                                 |   |   |   | $          |  2,793    |           | $ |  (349) |

|                                      |                                 |   |   |   |        | 2015           |   |          | 2014          |
|-------------------------------------------|--------------------------------------|--------|--------|--------|-------------|----------------|--------|---------------|---------------|
|                                      |                                 |   |   |   |        |           |   |          |          |
| Balance, beginning of fiscal year, net    |                                 |   |   | $      |  (349) |           | $      |  1,443   |
|                                      |                                 |   |   |   |        |           |   |          |          |
| Recognized in the statements of earnings: |                                 |   |   |   |        |           |   |          |
|                                      | Non-capital losses                   |   |   |   |        |  3,005    |   |          |  2,211   |
|                                      | Non-deductible reserves and accruals |   |   |   |        |  22,589   |   |          |  (9,853) |
|                                      | Property, plant and equipment        |   |   |   |        |  (16,445) |   |          |  1,685   |
|                                      | Intangible assets                    |   |   |   |        |  7,385    |   |          |  5,316   |
|                                      | Other                                |   |   |   |        |  317      |   |          |  1,694   |
|                                      | Unrecognized deferred tax assets     |   |   |   |        |  (14,341) |   |          |  2,027   |
|                                      |                                 |   |   |   |        |  2,510    |   |          |  3,080   |
|                                      |                                 |   |   |   |        |           |   |          |          |
| Business acquisitions                     |                                 |   |   |   |  -     |           |   |  (4,890) |
| Other                                     |                                 |   |   |   |  632   |           |   |  18      |
| Balance, end of fiscal year, net          |                                 |   |   | $      |  2,793 |           | $      |  (349)   |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.95 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                              |                                                            |   |          | 2015          |   |          | 2014          |
|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|---------------|---------------|--------|---------------|---------------|
|                                                                                                                              |                                                            |   |          | (15 months)   |   |          |          |
| Net earnings - basic and diluted                                                                                                  |                                                            | $      |  304,914 |          | $      |  359,552 |
|                                                                                                                              |                                                            |   |          |          |   |          |          |
| Basic earnings per share:                                                                                                         |                                                            |   |          |          |   |          |
|                                                                                                                              | Basic weighted average number of common shares outstanding      |   |          |  242,502 |   |          |  243,530 |
| Basic earnings per share                                                                                                          |                                                            | $      |  1.26    |          | $      |  1.48    |
|                                                                                                                              |                                                            |   |          |          |   |          |          |
| Diluted earnings per share:                                                                                                       |                                                            |   |          |          |   |          |
|                                                                                                                              | Basic weighted average number of common shares outstanding      |   |          |  242,502 |   |          |  243,530 |
|                                                                                                                              | Plus dilutive impact of stock options, Treasury RSUs and common |   |          |          |   |          |          |
|                                                                                                                              |   shares held in trust                                |   |  1,819   |          |   |  2,828   |
|                                                                                                                              | Diluted weighted average number of common shares outstanding    |   |          |  244,321 |   |          |  246,358 |
| Diluted earnings per share                                                                                                        |                                                            | $      |  1.25    |          | $      |  1.46    |
| All earnings per share data and share data reflect the effect of the two-for-one stock split which took effect on March 27, 2015. |

|                                                                               |   |           |          | 2015   |          | 2014         |
|------------------------------------------------------------------------------------|--------|----------------|---------------|--------|---------------|--------------|
|                                                                               |   |           |          |   | (15 months)   |         |   |
| Depreciation of property, plant and equipment  (note 9)                  | $      |  134,688  |          | $      |  84,561  |
| Adjustment for the variation of depreciation of property, plant and                |   |           |          |   |          |
|   equipment included in inventories at the beginning and end of the year |   |  (14,399) |          |   |  (6,168) |
| Depreciation of property, plant and equipment included in net earnings             |   |  120,289  |          |   |  78,393  |
| Amortization of intangible assets, excluding software (note 10)                    |   |  22,546   |          |   |  15,216  |
| Amortization of software (note 10)                                                 |   |  3,578    |          |   |  2,009   |
| Depreciation and amortization included in net earnings                             |   | $              |  146,413 |   | $             |  95,618 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.96 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Adjustments to reconcile net earnings to cash flows from operating activities: |
|-----|--------------------------------------------------------------------------------|

|   |                                                                     |   |   | 2015           |   | 2014   |
|--------|--------------------------------------------------------------------------|--------|--------|----------------|--------|--------|
|   |                                                                     |   |   | (15 months)    |   |   |   |
|   | Depreciation and amortization (note 20)                                  |   | $      |  146,413  |   | $      |  95,618 |
|   | Restructuring charges related to assets held for sale and property,      |   |   |           |   |   |   |
|   |   plant and equipment (note 17)                                |   |   |  (833)    |   |   |  (345) |
|   | Loss on remeasurement of contingent consideration (note 17)              |   |   |  1,118    |   |   |  - |
|   | (Gain) loss on disposal of property, plant and equipment                 |   |   |  1,167    |   |   |  (548) |
|   | Share-based compensation                                                 |   |   |  12,320   |   |   |  10,207 |
|   | Deferred income taxes (note 18)                                          |   |   |  (2,510)  |   |   |  (3,080) |
|   | Unrealized net (gain) loss on foreign exchange and financial derivatives |   |   |  226      |   |   |  (1,783) |
|   | Timing differences between settlement of financial derivatives           |   |   |           |   |   |   |
|   |   and transfer of deferred loss in AOCI to net earnings        |   |   |  5,042    |   |   |  (5,863) |
|   | Other non-current assets                                                 |   |   |  2,011    |   |   |  (125) |
|   | Other non-current liabilities                                            |   |   |  (17,300) |   |   |  (893) |
|   |                                                                     |   | $      |  147,654  |   | $      |  93,188 |

| (b) | Variations in non-cash transactions: |
|-----|--------------------------------------|

|   |                                                                       |   |   | 2015   |          | 2014   |
|--------|----------------------------------------------------------------------------|--------|--------|--------|---------------|--------|
|   |                                                                       |   |   |   | (15 months)   |   |   |   |
|   | Additions to property, plant and equipment and intangible assets           |   |   |   |          |   |   |   |
|   |   included in accounts payable and accrued liabilities and other |   |   |   |          |   |   |   |
|   |   non-current liabilities                                        |   |   | $      |  (6,980) |   | $ |  13,993 |
|   | Proceeds on disposal of property, plant and equipment included             |   |   |   |          |   |   |   |
|   |   in other current assets                                        |   |   |   |  (234)   |   |   |  (79) |
|   | Amounts payable relating to business acquisitions (note 5)                 |   |   |   |  -       |   |   |  (6,400) |
|   | Settlement of pre-existing relationship (note 5)                           |   |   |   |  8,378   |   |   |  - |
|   | Transfer from accounts payable and accrued liabilities to                  |   |   |   |          |   |   |   |
|   |   contributed surplus in connection with share repurchases for   |   |   |   |          |   |   |   |
|   |   future settlement of non-Treasury RSUs                         |   |   |   |  7,488   |   |   |  8,383 |
|   | Non-cash ascribed value credited to contributed surplus for                |   |   |   |          |   |   |   |
|   |   dividends attributed to Treasury RSUs                          |   |   |   |  85      |   |   |  212 |
|   | Non-cash ascribed value credited to share capital from shares              |   |   |   |          |   |   |   |
|   |   issued or distributed pursuant to vesting of restricted share  |   |   |   |          |   |   |   |
|   |   units and exercise of stock options                            |   |   |   |  26,496  |   |   |  26,785 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.97 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                         |   |   |   |   |   | 2015         |   |   | 2014         |
|------------------------------|--------|--------|--------|--------|--------|--------------|--------|--------|--------------|
|                         |   |   |   |   |   | (15 months)  |   |   |         |
| Short-term employee benefits |   |   |   |   | $      |  7,579  |   | $      |  5,149  |
| Post-employment benefits     |   |   |   |   |   |  200    |   |   |  189    |
| Share-based payments         |   |   |   |   |   |  11,274 |   |   |  11,909 |
|                         |   |   |   |   | $      |  19,053 |   | $      |  17,247 |

|              |   |   |   | January 3, |   | October 5,  |
|-------------------|--------|--------|--------|------------|--------|-------------|
|              |   |   |   |       |   | 2016        |   |   | 2014 |
|              |   |   |   |       |   |        |   |   |   |
| Non-Treasury RSUs |   |   |   |       | $      |  1,463 |   | $ |  1,031 |
| DSUs              |   |   |   |       |   |  6,436 |   |   |  6,906 |
|              |   |   |   |       | $      |  7,899 |   | $ |  7,937 |

| (a) | Claims and litigation |
|-----|-----------------------|

|   | The Company is a party to claims and litigation arising in the normal course of operations. The Company does not expect the resolution of these matters to have a material adverse effect on the financial position or results of operations of the Company. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Guarantees: |
|-----|-------------|

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.98 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.99 |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                                         |                                                  |   |   |   | 2015   |            | 2014            |
|--------------------------------------------------------------|-------------------------------------------------------|--------|--------|--------|--------|-----------------|-----------------|
|                                                         |                                                  |   |   |   |   |            | (15 months)     |   |   |   |
| Segmented net sales:                                         |                                                  |   |   |   |   |            |            |   |
|                                                         | Printwear                                             |   |   |   |   | $               |  1,794,754 |   | $ |  1,559,549 |
|                                                         | Branded Apparel                                       |   |   |   |   |            |  1,164,484 |   |   |  800,445 |
| Total net sales                                              |                                                  |   |   |   | $      |  2,959,238 |            | $ |  2,359,994 |
|                                                         |                                                  |   |   |   |   |            |            |   |   |   |
| Segment operating income:                                    |                                                  |   |   |   |   |            |            |   |   |
|                                                         | Printwear                                             |   |   |   |   | $               |  363,607   |   | $ |  389,022 |
|                                                         | Branded Apparel                                       |   |   |   |   |            |  91,033    |   |   |  73,236 |
| Total segment operating income                               |                                                  |   |   |   | $      |  454,640   |            | $ |  462,258 |
|                                                         |                                                  |   |   |   |   |            |            |   |   |   |
| Reconciliation to consolidated earnings before income taxes: |                                                  |   |   |   |   |            |
|                                                         | Total segment operating income                        |   |   |   |   | $               |  454,640   |   | $ |  462,258 |
|                                                         | Amortization of intangible assets, excluding software |   |   |   |   |  (22,546)  |            |   |  (15,216) |
|                                                         | Corporate expenses                                    |   |   |   |   |            |  (89,949)  |   |   |  (74,374) |
|                                                         | Restructuring and acquisition-related costs           |   |   |   |   |            |  (14,908)  |   |   |  (3,247) |
|                                                         | Financial expenses, net                               |   |   |   |   |            |  (17,797)  |   |   |  (2,897) |
| Earnings before income taxes                                 |                                                  |   |   |   | $      |  309,440   |            | $ |  366,524 |

| Additions to property, plant and equipment and intangible assets            |                                                    |   |   |           |   |          |
|-----------------------------------------------------------------------------|---------------------------------------------------------|--------|--------|----------------|--------|---------------|
|   (including additions from business acquisitions and transfers): |                                                    |   |   |           |   |          |
|                                                                        | Printwear                                               |   |   |           |   | $             |  392,635 |   | $ |  185,665 |
|                                                                        | Branded Apparel                                         |   |   |           |   |          |  73,911 |   |   |  116,754 |
|                                                                        | Corporate                                               |   |   |           |   |          |  4,682 |   |   |  3,145 |
|                                                                        | Assets not yet utilized in operations, net of transfers |   |   |  (87,321) |   |          |  57,975 |
|                                                                        |                                                    |   |   |           | $      |  383,907 |   | $ |  363,539 |
|                                                                        |                                                    |   |   |           |   |          |   |   |   |   |
| Depreciation of property, plant and equipment:                              |                                                    |   |   |           |   |          |
|                                                                        | Printwear                                               |   |   |           |   | $             |  77,468 |   | $ |  46,361 |
|                                                                        | Branded Apparel                                         |   |   |           |   |          |  39,273 |   |   |  29,393 |
|                                                                        | Corporate                                               |   |   |           |   |          |  3,548 |   |   |  2,639 |
|                                                                        |                                                    |   |   |           | $      |  120,289 |   | $ |  78,393 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.100 |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

----

| The reconciliation of total assets to segmented assets is as follows: |
|-----------------------------------------------------------------------|

|                   |                                  |   |   |         |   | January 3,      |            | October 5, |
|------------------------|---------------------------------------|--------|--------|--------------|--------|-----------------|-----------------|------------|
|                   |                                  |   |   |         | 2016   |            | 2014            |
|                   |                                  |   |   |         |   |            |            |       |   |   |
| Segmented assets: (1)  |                                  |   |   |         |   |            |            |       |   |
|                   | Printwear                             |   |   |         |   | $               |  1,453,823 |       | $ |  1,157,855 |
|                   | Branded Apparel                       |   |   |         |   |            |  1,197,838 |       |   |  1,151,005 |
| Total segmented assets |                                  |   |   |         |   |  2,651,661 |            |       |  2,308,860 |
| Unallocated assets:    |                                  |   |   |         |   |            |            |       |   |
|                   | Cash and cash equivalents             |   |   |         |   |            |  50,675    |       |   |  65,163 |
|                   | Income taxes receivable               |   |   |         |   |            |  -         |       |   |  1,439 |
|                   | Assets held for sale                  |   |   |         |   |            |  2,840     |       |   |  5,839 |
|                   | Deferred income taxes                 |   |   |         |   |            |  2,793     |       |   |  - |
|                   | Assets not yet utilized in operations |   |   |         |   |            |  84,683    |       |   |  172,005 |
|                   | Other - primarily corporate assets    |   |   |  41,628 |   |            |  39,738    |
| Consolidated assets    |                                  |   |   |         | $      |  2,834,280 |            | $          |  2,593,044 |

|            |   |   |   | January 3, |   | October 5, |
|-----------------|--------|--------|--------|------------|--------|------------|
|            |   |   |   |       |   | 2016       |   |   | 2014 |
|            |   |   |   |       |   |       |   |   |   |
| United States   |   |   |   |       | $      | 857,082    |   | $ | 691,601 |
| Canada          |   |   |   |       |   | 120,152    |   |   | 117,036 |
| Honduras        |   |   |   |       |   | 400,774    |   |   | 408,485 |
| Caribbean Basin |   |   |   |       |   | 156,562    |   |   | 92,336 |
| Bangladesh      |   |   |   |       |   | 20,831     |   |   | 19,297 |
| Other           |   |   |   |       |   | 16,367     |   |   | 8,769 |
|            |   |   |   |       | $      | 1,571,768  |   | $ | 1,337,524 |

|                     |   |   |   |   | 2015   |        |   | 2014   |
|--------------------------|--------|--------|--------|--------|--------|-------------|--------|--------|
|                     |   |   |   |   |   | (15 months) |   |   |   |
| Activewear and underwear |   |   |   |   | $      | 2,246,524   |   | $      | 1,870,892 |
| Socks                    |   |   |   |   |   | 712,714     |   |   | 489,102 |
|                     |   |   |   |   | $      | 2,959,238   |   | $      | 2,359,994 |

|             |   |   |   |   | 2015   |        |   | 2014   |
|------------------|--------|--------|--------|--------|--------|-------------|--------|--------|
|             |   |   |   |   |   | (15 months) |   |   |   |
| United States    |   |   |   |   | $      | 2,585,533   |   | $      | 2,088,938 |
| Canada           |   |   |   |   |   | 136,516     |   |   | 84,212 |
| Europe and other |   |   |   |   |   | 237,189     |   |   | 186,844 |
|             |   |   |   |   | $      | 2,959,238   |   | $      | 2,359,994 |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.101 |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

----

|       |   |   |   |   | 2015   |        |   | 2014   |
|------------|--------|--------|--------|--------|--------|-------------|--------|--------|
|       |   |   |   |   |   | (15 months) |   |   |   |
| Customer A |   |   |   |   |   | 15.7%       |   |   | 17.7% |
| Customer B |   |   |   |   |   | 13.1%       |   |   | 10.7% |

|   |            GILDAN 2015 REPORT TO SHAREHOLDERS   P.102 |
|--------|-----------------------------------------------------------------------------------------------------------------------------|