##### 



For Immediate Release
 Contact:
    
    Laurence G. Sellyn, Executive Vice-President,
Chief Financial and Administrative Officer
Tel: (514) 343-8805
Email: lsellyn@gildan.com
 Gildan Activewear Announces 92.9% Increase in First Quarter Net Earnings and EPS
 EPS Ahead of Recent Guidance 
 Company Provides EPS Guidance for Second Quarter and Raises EPS Guidance for Full Fiscal Year 
 Montréal, Wednesday, February 1, 2006
 First Quarter Sales and Earnings




---



##### 



Gildan
    
    Gildan
    
    
    
    Gildan
    
    IndustryMarket Share
    
    Market Share
    
    
    
    Unit Growth
    
    Unit GrowthQ1 2006
    
    Q1 2005
    
    
    
    Q1 2006 vs. Q1 2005
    
    Q1 2006 vs. Q1 200541.7%
    
    30.2%
    
    T-shirts
    
    34.2%
    
    2.8%33.9%
    
    24.6%
    
    Sport shirts
    
    28.7%
    
    (0.4)%27.7%
    
    18.6%
    
    Fleece
    
    33.0%
    
    0.5%
   Earnings Guidance
   2




---



##### 



Cash Flow
  Disclosure of Outstanding Share Data
  Profile
  Certain statements included in this press release may constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and other factors which
could cause actual results to differ materially from future results expressed or implied by such
forward-looking statements. We refer you to the Companys filings with the U.S. Securities and
Exchange Commission and Canadian securities regulatory authorities for a discussion of the various
factors that may affect the Companys future results.
 This release includes reference to certain Non-GAAP Financial Measures such as net earnings and
earnings per share before the special charge, and free cash flow. The Company uses and presents
certain Non-GAAP Financial
 3




---



##### 



Measures because it believes such measures provide meaningful information on the Companys
performance and operating results. However, investors should know that such Non-GAAP Financial
Measures have no standardized meaning as prescribed by GAAP and may not be comparable to similar
measures presented by other companies. Accordingly, they should not be considered in isolation.
 Information for shareholders
  - 30 -
 4




---



##### 



Gildan Activewear Inc.
Consolidated Statements of Earnings
 Three months endedJanuary 1, 2006
    
    
    January 2, 2005(unaudited)
    
    
    (unaudited)Sales
    
    $
    120,310
    
    
    $
    108,957Cost of sales
    
    
    77,415
    
    
    
    76,577Gross profit
    
    
    42,895
    
    
    
    32,380Selling, general and administrative expenses
    
    
    18,063
    
    
    
    16,32724,832
    
    
    
    16,053Depreciation and amortization
    
    
    7,430
    
    
    
    5,880Interest expense, net
    
    
    566
    
    
    
    1,201Non-controlling interest in loss of consolidated joint venture
    
    
    (108
    )
    
    
    Earnings before income taxes
    
    
    16,944
    
    
    
    8,972Income tax expense
    
    
    749
    
    
    
    585Net earnings
    
    $
    16,195
    
    
    $
    8,387Basic EPS
    
    $
    0.27
    
    
    $
    0.14Diluted EPS
    
    $
    0.27
    
    
    $
    0.14Weighted average number of shares outstanding (in thousands)Basic
    
    
    59,970
    
    
    
    59,407Diluted
    
    
    60,559
    
    
    
    59,770




---



##### 



Gildan Activewear Inc.
Consolidated Statements of Cash Flows
 Three months endedJanuary 1, 2006
    
    
    January 2, 2005(unaudited)
    
    
    (unaudited)Cash flows from (used in) operating activities:Net earnings
    
    $
    16,195
    
    
    $
    8,387Adjustments for:Depreciation and amortization
    
    
    7,430
    
    
    
    5,880Future income taxes
    
    
    227
    
    
    
    (183
    )Loss on disposal and writedown of fixed assets
    
    
    40
    
    
    
    325Stock-based compensation expense
    
    
    277
    
    
    
    200Other
    
    
    147
    
    
    
    (159
    )24,316
    
    
    
    14,450Net changes in non-cash working capital balances:Accounts receivable
    
    
    56,829
    
    
    
    37,701Inventories
    
    
    (43,983
    )
    
    
    (25,504
    )Prepaid expenses and deposits
    
    
    1,129
    
    
    
    (2,560
    )Accounts payable and accrued liabilities
    
    
    (6,277
    )
    
    
    (12,087
    )Income taxes payable
    
    
    58
    
    
    
    23632,072
    
    
    
    12,236Cash flows from financing activities:Net increase in long-term debt
    
    
    92
    
    
    
    906Proceeds from the issuance of shares
    
    
    860
    
    
    
    409952
    
    
    
    1,315Cash flows used in investing activities:Purchase of fixed assets, net of disposals
    
    
    (12,374
    )
    
    
    (22,089
    )Increase in other assets
    
    
    (107
    )
    
    
    (54
    )(12,481
    )
    
    
    (22,143
    )Effect of exchange rate changes on cash
and cash equivalents
    
    
    (49
    )
    
    
    302Net increase (decrease) in cash and cash equivalents
during the period
    
    
    20,494
    
    
    
    (8,290
    )Cash and cash equivalents, beginning of period
    
    
    69,802
    
    
    
    60,671Cash and cash equivalents, end of period
    
    $
    90,296
    
    
    $
    52,381




---



##### 



Gildan Activewear Inc.
Consolidated Balance Sheets
 January 1, 2006
    
    
    October 2, 2005
    
    
    January 2, 2005(unaudited)
    
    
    (audited)
    
    
    (unaudited)Current assets:Cash and cash equivalents
    
    $
    90,296
    
    
    $
    69,802
    
    
    $
    52,381Accounts receivable
    
    
    51,699
    
    
    
    108,646
    
    
    
    49,099Inventories
    
    
    178,844
    
    
    
    134,861
    
    
    
    142,575Prepaid expenses and deposits
    
    
    3,265
    
    
    
    4,394
    
    
    
    5,872Future income taxes
    
    
    11,162
    
    
    
    10,135
    
    
    
    8,818335,266
    
    
    
    327,838
    
    
    
    258,745Fixed assets
    
    
    265,338
    
    
    
    260,615
    
    
    
    234,992Assets held for sale
    
    
    5,027
    
    
    
    5,027
    
    
    
    Other assets
    
    
    4,014
    
    
    
    4,036
    
    
    
    3,739Total assets
    
    $
    609,645
    
    
    $
    597,516
    
    
    $
    497,476Current liabilities:Bank indebtedness
    
    $
    3,980
    
    
    $
    3,980
    
    
    $
    Accounts payable and accrued liabilities
    
    
    80,220
    
    
    
    86,843
    
    
    
    65,562Income taxes payable
    
    
    2,274
    
    
    
    2,206
    
    
    
    2,364Current portion of long-term debt
    
    
    19,853
    
    
    
    19,859
    
    
    
    19,711106,327
    
    
    
    112,888
    
    
    
    87,637Long-term debt
    
    
    27,386
    
    
    
    27,288
    
    
    
    41,153Future income taxes
    
    
    32,754
    
    
    
    31,386
    
    
    
    29,235Non-controlling interest
    
    
    5,286
    
    
    
    5,394
    
    
    
    2,860Shareholders equity:Share capital
    
    
    85,037
    
    
    
    84,177
    
    
    
    78,579Contributed surplus
    
    
    1,873
    
    
    
    1,596
    
    
    
    881Retained earnings
    
    
    324,734
    
    
    
    308,539
    
    
    
    230,883Cumulative translation adjustment
    
    
    26,248
    
    
    
    26,248
    
    
    
    26,248437,892
    
    
    
    420,560
    
    
    
    336,591Total liabilities and shareholders equity
    
    $
    609,645
    
    
    $
    597,516
    
    
    $
    497,476