# EDGAR Filing Document

**Accession Number:** 0001061894
**File Stem:** 0001061894-25-000022
**Filing Date:** 2025-7
**Character Count:** 224251
**Document Hash:** 143aa2a460483e3c06c03a25e8f5ab99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001061894-25-000022.hdr.sgml**: 20250731

**ACCESSION NUMBER**: 0001061894-25-000022

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20250629

**FILED AS OF DATE**: 20250731

**DATE AS OF CHANGE**: 20250731

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Gildan Activewear Inc.
- **CENTRAL INDEX KEY:** 0001061894
- **STANDARD INDUSTRIAL CLASSIFICATION:** APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** Z4
- **FISCAL YEAR END:** 1228

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14830
- **FILM NUMBER:** 251169474

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 600 BOULEVARD DE MAISONNEUVE OUEST
- **STREET 2:** 33RD FLOOR
- **CITY:** MONTREAL
- **PROVINCE COUNTRY:** A8
- **ZIP:** H3A 3J2
- **BUSINESS PHONE:** 5147352023

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 600 BOULEVARD DE MAISONNEUVE OUEST
- **STREET 2:** 33RD FLOOR
- **CITY:** MONTREAL
- **PROVINCE COUNTRY:** A8
- **ZIP:** H3A 3J2

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GILDAN ACTIVEWEAR INC
- **DATE OF NAME CHANGE:** 19980515

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**Form 6-K**

**Report of Foreign Private Issuer**

**Pursuant to Rule 13a-16 or 15d-16 of**

**the Securities Exchange Act of 1934**

---

| | |
|:---|:---|
| **For the month of: July 2025** | **Commission File Number: 1-14830** |

---

**GILDAN ACTIVEWEAR INC.**

*(Translation of Registrant's name into English)*

**600 de Maisonneuve Boulevard West**

**33rd Floor**

**Montréal, Québec**

**Canada H3A 3J2**

*(Address of Principal Executive Offices)*

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F □ Form 40-F 🗹

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): □

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | **GILDAN ACTIVEWEAR INC.** | **GILDAN ACTIVEWEAR INC.** | **GILDAN ACTIVEWEAR INC.** |
| Date:&nbsp;&nbsp;&nbsp;&nbsp; July 31, 2025 | By: | /s/ Isabelle Papillon | /s/ Isabelle Papillon |
|  |  | Name: | Isabelle Papillon |
|  |  | Title: | Corporate Secretary |

---

SEC 1815 (04-09) Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** | **Description of Exhibit** |
| 99.1 | <u>[Management's Discussion and Analysis](exhibit991q22025mda.htm)</u> |
| 99.2 | <u>[Interim Financial Statements](exhibit992q22025fs.htm)</u> |
| 99.3 | <u>[Certifications of Interim Filings - CEO](exhibit993q22025interimceo.htm)</u> |
| 99.4 | <u>[Certifications of Interim Filings - CFO](exhibit994q22025interimcfo.htm)</u> |

---

## Exhibit 99.1

![reportlogonewa.jpg](reportlogonewa.jpg)

**2025 Second Quarter**

**Shareholder Report**

---

| | |
|:---|:---|
| **Contents** | |
| MD&A |  |
| &nbsp;&nbsp;&nbsp;&nbsp;1.0 Preface | [2](#i12cfdecfc4fa4922877317652807b554_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;2.0 Caution regarding forward-looking statements | [2](#i12cfdecfc4fa4922877317652807b554_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.0 Our business | [4](#i12cfdecfc4fa4922877317652807b554_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.0 Strategy | [8](#i12cfdecfc4fa4922877317652807b554_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;5.0 Operating results | [9](#i12cfdecfc4fa4922877317652807b554_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;6.0 Financial condition | [17](#i12cfdecfc4fa4922877317652807b554_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;7.0 Cash flows | [19](#i12cfdecfc4fa4922877317652807b554_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;8.0 Liquidity and capital resources | [21](#i12cfdecfc4fa4922877317652807b554_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;9.0 Legal proceedings | [26](#i12cfdecfc4fa4922877317652807b554_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.0 Financial risk management | [26](#i12cfdecfc4fa4922877317652807b554_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;11.0 Critical accounting estimates and judgments | [26](#i12cfdecfc4fa4922877317652807b554_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;12.0 Accounting policies and new accounting standards not yet applied | [27](#i12cfdecfc4fa4922877317652807b554_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;13.0 Internal control over financial reporting | [27](#i12cfdecfc4fa4922877317652807b554_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;14.0 Risks and uncertainties | [27](#i12cfdecfc4fa4922877317652807b554_49) |
| &nbsp;&nbsp;&nbsp;&nbsp;15.0 Definition and reconciliation of non-GAAP financial measures and related ratios | [28](#i12cfdecfc4fa4922877317652807b554_52) |
| Condensed interim consolidated financial statements | 38 |
| Notes to the condensed interim consolidated financial statements | 42 |

---

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**1.0 PREFACE** 

In this Management's Discussion and Analysis (MD&A), "Gildan", the "Company", or the words "we", "us", and "our" refer, depending on the context, either to Gildan Activewear Inc. or to Gildan Activewear Inc. together with its subsidiaries.

This MD&A comments on our operations, financial performance, and financial condition as at and for the three and six months ended June 29, 2025. All amounts in this MD&A are in U.S. dollars, unless otherwise noted. For a complete understanding of our business environment, trends, risks and uncertainties, and the effect of accounting estimates on our results of operations and financial condition, this MD&A should be read in conjunction with Gildan's unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025, and the related notes, and with our MD&A for the year ended December 29, 2024 (2024 Annual MD&A).

In preparing this MD&A, we have taken into account all information available to us up to July 30, 2025, the date of this MD&A. The unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025 and this MD&A were reviewed by Gildan's Audit and Finance Committee and were approved and authorized for issuance by our Board of Directors on July 30, 2025.

The unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025 have been prepared in accordance with generally accepted accounting principles ("GAAP"), more specifically, prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB). All financial information contained in this MD&A is consistent with International Financial Reporting Standards (IFRS), except for certain information discussed in the section entitled "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Additional information about Gildan, including our 2024 Annual Information Form, is available on our website at www.gildancorp.com, on the SEDAR+ website at www.sedarplus.ca, and on the EDGAR section of the U.S. Securities and Exchange Commission website (which includes the Annual Report on Form 40-F) at www.sec.gov.

**2.0 CAUTION REGARDING FORWARD-LOOKING STATEMENTS** 

Certain statements included in this MD&A constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations and are subject to important risks, uncertainties, and assumptions. This forward-looking information includes, amongst others, information with respect to our objectives and the strategies to achieve these objectives, including statements related to the Gildan's Sustainable Growth (GSG) strategy and Next Generation ESG strategy and ESG targets, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates, and intentions. In particular, information appearing under the headings "Our business", "Strategy", "Operating results", "Liquidity and capital resources", "Financial risk management", and "Risks and uncertainties" contain forward looking statements. Forward-looking statements generally can be identified by the use of conditional or forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "assume", "anticipate", "plan", "foresee", "believe", or "continue", or the negatives of these terms or variations of them or similar terminology. We refer you to the Company's filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, as well as the risks described under the "Financial risk management", "Critical accounting estimates and judgments", and "Risks and uncertainties" sections of this MD&A for a discussion of the various factors that may affect the Company's future results. Material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection are also set out throughout this document.

QUARTERLY REPORT - Q2 2025 P.2

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

Forward-looking information is inherently uncertain and the results or events predicted in such forward-looking information may differ materially from actual results or events. Material factors, which could cause actual results or

events to differ materially from a conclusion, forecast, or projection in such forward-looking information, include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general economic, financial or geopolitical conditions globally or in one or more of the markets we serve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to implement our growth strategies and plans, including our ability to bring projected capacity expansion online;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the intensity of competitive activity and our ability to compete effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on a small number of significant customers, including our largest distributor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that our customers do not commit to minimum quantity purchases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to anticipate, identify, or react to changes in consumer preferences and trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage production and inventory levels effectively in relation to changes in customer demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations and volatility in the prices of raw materials and energy related inputs, from current levels, used to manufacture and transport our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on key suppliers and our ability to maintain an uninterrupted supply of raw materials, intermediate materials, and finished goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of climate, political, social, and economic risks, natural disasters, epidemics, pandemics and endemics, in the countries in which we operate or sell to, or from which we source production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruption to manufacturing and distribution activities due to such factors as operational issues, disruptions in transportation logistic functions, labour disruptions, political or social instability, weather-related events, natural disasters, epidemics and pandemics, and other unforeseen adverse events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with applicable trade, competition, taxation, environmental, health and safety, product liability, employment, patent and trademark, corporate and securities, licensing and permits, data privacy, bankruptcy, anti-corruption, and other laws and regulations in the jurisdictions in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the imposition of trade remedies, compliance with or changes to duties and tariffs, international trade legislation, bilateral and multilateral trade agreements and trade preference programs that the Company is currently relying on in conducting its manufacturing operations or the application of safeguards thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact, including broader economic impacts, of the tariffs imposed by the U.S. Administration and of any retaliation measures adopted by other governments, or the imposition of further restrictions or prohibitions on the export or import of goods between countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• elimination of government subsidies and credits that we currently benefit from, and the non-realization of anticipated new subsidies and credits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• factors or circumstances that could increase our effective income tax rate, including the outcome of any tax audits or changes to applicable tax laws or treaties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to and failure to comply with consumer product safety laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our relationship with our employees or changes to domestic and foreign employment laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on key management and our ability to attract and/or retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative publicity as a result of actual, alleged, or perceived violations of human rights, labour and environmental laws or international labour standards, or unethical labour or other business practices by the Company or one of its third-party contractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to protect our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operational problems with our information systems or those of our service providers as a result of system failures, viruses, security and cyber security breaches, disasters, and disruptions due to system upgrades or the integration of systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an actual or perceived breach of data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rapid developments in artificial intelligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully integrate acquisitions and realize expected benefits and synergies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting policies and estimates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to risks arising from financial instruments, including credit risk on trade accounts receivables and other financial instruments, liquidity risk, foreign currency risk, and interest rate risk, as well as risks arising from commodity prices.

QUARTERLY REPORT - Q2 2025 P.3

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

These factors may cause the Company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the Company's business. For example, they do not include the effect of business dispositions, acquisitions, other business transactions, asset write-downs, asset impairment losses, or other charges announced or occurring after forward-looking statements are made. The financial impact of such transactions and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them.

There can be no assurance that the expectations represented by our forward-looking statements will prove to be correct. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Company's future financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this report are made as of the date hereof, and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this report are expressly qualified by this cautionary statement.

**3.0 OUR BUSINESS**

**3.1 Overview**

Gildan is a leading vertically integrated manufacturer of everyday basic apparel, including activewear, underwear, and hosiery products. Our products are sold to wholesale distributors, screenprinters, and embellishers in North America, Europe, Asia-Pacific, and Latin America, as well as to retailers in North America, including mass merchants, department stores, national chains, specialty retailers, craft stores, and online retailers. We also manufacture products for global lifestyle brand companies who market these products under their own brands through their own retail establishments, e-commerce platforms, and/or to third-party retailers.

Manufacturing and operating as a socially responsible producer is at the heart of what we do. The vast majority of our sales are derived from products we manufacture ourselves. Since the Company's formation, we have made significant capital investments in developing and operating our own large-scale, vertically integrated manufacturing facilities, including yarn production, textile and sock manufacturing, as well as sewing operations, controlling all aspects of the production process from start to finish for the garments we produce.

We believe the skill set that we have developed in designing, constructing, and operating our own manufacturing facilities, the level of vertical integration of our supply chain and the capital investments that we have made over the years differentiate us from our competition who are not as vertically integrated and may rely more heavily on third-party suppliers. Owning and operating the vast majority of our manufacturing facilities allows us to exercise tighter control over our production processes, efficiency levels, costs and product quality, as well as to provide reliable service with short production and delivery cycle times. In addition, running our own operations allows us to achieve adherence to high standards for environmental and social responsibility practices employed throughout our supply chain.

**3.2 Our Operations**

**3.2.1 Brands, Products and Customers** 

The products we manufacture and sell are marketed under Company brands, including Gildan®, American Apparel®, Comfort Colors®, Gildan Hammer®, GoldToe®, and Peds®, as well as Champion®, which is under an exclusive licensing agreement for the printwear channel in the U.S. and Canada. Further, we manufacture for, and supply products to, select leading global athletic and lifestyle brands, and to certain retail customers who market these products under their own exclusive brands.

Our primary products include activewear tops and bottoms (activewear), socks (hosiery), and underwear tops and bottoms (underwear). In fiscal 2024, Activewear sales accounted for 87% of total net sales, and Hosiery and underwear sales accounted for 13% of total net sales.

QUARTERLY REPORT - Q2 2025 P.4

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

We sell our activewear products primarily in "blank" or undecorated form, without imprints or embellishment. The majority of our Activewear sales are currently derived from activewear sold to wholesale distributors in the imprintables channels in North America and internationally. These wholesale distributors then sell the blank garments to screenprinters/embellishers who decorate the products with designs and logos, and who in turn sell the embellished/imprinted activewear into a highly diversified range of end-use markets. These include educational institutions, athletic dealers, event merchandisers, promotional product distributors, charitable organizations, entertainment promoters, travel and tourism venues, and retailers. The activewear products have diverse applications, such as serving as work or school uniforms or athletic team wear or simply conveying individual, group, and team identity. We also sell activewear products in blank form directly to various retailers or through national accounts servicing retailers, in addition to underwear and socks for men, ladies, and kids. These retailers include mass merchants, department stores, national chains, sports specialty stores, craft stores, food and drug retailers, dollar stores, and price clubs, all of which sell to consumers through their brick and mortar outlets and/or their e-commerce platforms. Additionally, we sell to pure-play online retailers who sell to consumers. We also manufacture for, and sell to, select leading global athletic and lifestyle consumer brand companies who distribute these products within the retail channel through their own retail establishments, e-commerce platforms, and/or through third-party retailers.

The following table summarizes our current primary product offering under Company and licensed brands:

---

| | | |
|:---|:---|:---|
| **Primary products** | **Product-line details** | **Brands** |
| Activewear | T-shirts, fleece tops and bottoms, sport shirts, polos and tank tops | Gildan®, Gildan Performance®, Gildan Hammer®, Gildan Softstyle®, Gildan® Heavy Cotton™, Gildan® Ultra Cotton®, Gildan DryBlend®, Gildan® HeavyBlend™, Comfort Colors®, American Apparel®, Champion®<sup>1</sup> |
| Hosiery | athletic, dress, casual and workwear socks, liner socks, and socks for therapeutic purposes<sup>(2)</sup> | Gildan®, Gildan® Ultra Cotton®, GoldToe®, GoldToe® Signature™, GoldToe EditionTM, Peds®, MediPeds®, Powersox® |
| Underwear | men's and boys' underwear (tops and bottoms) and ladies panties | Gildan®, Gildan Platinum®, Gildan Softstyle®, Gildan Performance® BareSoft™, Gildan Performance® EZBreeze™ |

---

(1) Under an exclusive licensing agreement for the printwear channel in the U.S. and Canada.

(2) Applicable only to MediPeds®.

**3.2.2 Manufacturing**

The vast majority of our products are manufactured in facilities that we own and operate. To a much lesser extent, we also use third-party contractors to supplement certain product requirements. Our vertically integrated operations span from start to finish across the garment production process, encompassing capital-intensive yarn-spinning, textile and sock manufacturing facilities, as well as labour-intensive sewing facilities. Our manufacturing operations are situated in four main hubs, specifically in the United States, Central America, the Caribbean, and Bangladesh. All of our yarn-spinning operations are located in the United States, while textile, sewing, and sock manufacturing operations are situated in the other geographical hubs mentioned above, the largest of which is in Honduras in Central America.

In order to support further sales growth, continue to drive an efficient and competitive cost structure, and enhance geographic diversification in our supply chain, we have been expanding manufacturing capacity with a significant expansion in Bangladesh, which involves the development of a large multi-plant manufacturing complex expected to house two large textile facilities and related sewing operations. The construction of the first textile and sewing complex is completed and fully ramped-up as of the second quarter of 2025.

QUARTERLY REPORT - Q2 2025 P.5

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

The following table provides a summary of our primary manufacturing operations by geographic region:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **United States** | **Central America** | **Caribbean** | **Asia** |
| **Yarn-spinning facilities**<sup>(1)</sup>**:** <br>conversion of cotton, polyester and other fibres into yarn | ■ Salisbury, NC<br>■ Mocksville, NC<br>■ Clarkton, NC<br>■ Sanford, NC<br>(2 facilities)<br>■ Mayodan, NC |  |  |  |
| **Textile facilities:** <br>knitting yarn into fabric, dyeing and cutting fabric  |  | ■ Honduras<br> (4 facilities) | ■ Dominican <br> Republic | ■ Bangladesh (2 facilities) |
| **Sewing facilities**<sup>(2)</sup>**:** <br>conversion of cut fabric into garments |  | ■ Honduras<br> (2 facilities)<br>■ Nicaragua <br> (5 facilities) | &nbsp;&nbsp;&nbsp;■ Dominican <br>&nbsp;&nbsp;&nbsp;&nbsp;Republic <br>(3 facilities)  | ■ Bangladesh (3 facilities) |
| **Garment-dyeing**<sup>(3)</sup>**:**<br>pigment dyeing or reactive dyeing process (Pigment Pure™) |  | ■ Honduras |  |  |
| **Hosiery manufacturing facilities:**<br>conversion of yarn into finished socks |  | ■ Honduras |  |  |

---

(1) While the majority of our yarn requirements are internally produced, we also use third-party yarn-spinning suppliers, primarily in Asia for our Bangladesh operations, to satisfy the remainder of our yarn needs. The majority of cotton used by our Asian contractors is U.S. cotton.

(2) Although the majority of our sewing facilities are Company-operated, we also use the services of third-party sewing contractors, primarily in Central America and Haiti, to satisfy the remainder of our sewing requirements.

(3) Garment dyeing is a feature of our Comfort Colors® products only, a proprietary dyeing process under the name Pigment Pure™ which involves a different dyeing process than how we typically dye the majority of our products at our textile facilities.

**3.2.3 Sales, marketing and distribution** 

Our global sales and marketing office is located in Christ Church, Barbados, where we have established customer-related functions, including sales management, marketing, customer service, credit management, sales forecasting, production planning, inventory control, and logistics, as well as finance, human resources and information technology functions. We also maintain sales support offices in the U.S. We have established extensive distribution operations primarily through internally managed and operated large distribution centres and some smaller facilities in the U.S., a large distribution facility in Honduras, as well as a distribution facility in Bangladesh and one in Australia. To supplement some of our distribution needs, we also use third-party warehouses in North America and Europe.

**3.2.4 Employees and corporate office**

We currently employ approximately 50,000 employees worldwide. Our corporate head office is located in Montreal, Canada.

**3.3 Competitive environment** 

Competition in the basic apparel market is generally based upon service and product availability, price, quality, comfort and fit, style, and brand. We compete on these factors by leveraging our competitive strengths, including our strategically located and vertically integrated manufacturing supply chain, scale, cost structure, global distribution, and our brand positioning in the markets we serve. We believe our manufacturing skill set, together with our large-scale, low-cost vertically integrated supply chain infrastructure which we have developed through significant investments over time, are key competitive strengths and differentiators from our competition.

QUARTERLY REPORT - Q2 2025 P.6

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

We compete with large and smaller U.S. based and foreign manufacturers or suppliers of basic family apparel. Among the larger competing North American-based manufacturers are Hanesbrands Inc. and Fruit of the Loom, Inc., a subsidiary of Berkshire Hathaway Inc., which competes through its own brand offerings and those of its subsidiary, Russell Corporation, depending on the channel. These companies manufacture in some of the same geographies as Gildan and generally compete within the same basic apparel product categories in similar channels of distribution in North America and international markets. In socks and underwear, our competitors also include Renfro Corporation, Jockey International, Inc., and Kayser Roth Corporation. In addition, we compete with smaller U.S. based companies selling to, or operating as, wholesale distributors of imprintables activewear products, including Next Level Apparel, Color Image Apparel, Inc. (owner of the Bella + Canvas brand), as well as Central American, Mexican and Asian manufacturers that supply products in the imprintables channel. Although we also compete with some of our customers' own private brand offerings, we also supply products to certain customers that are seeking strategic suppliers with our type of manufacturing capabilities to support their private brand offerings.

**3.4 Recent events**

***U.S. administration reciprocal tariffs announced***

In a series of Executive Orders beginning on April 2, 2025, the U.S. administration imposed reciprocal tariffs of 10% on goods from most countries, effective April 5, 2025, in addition to country-specific tariff rates ranging from 11% to 50% for goods from over 50 countries that were scheduled to take effect April 9, 2025. These tariffs were subsequently modified on April 9, 2025, with the U.S. administration calling for a "pause" of 90 days to country-specific tariffs, while increasing the rate applicable to Chinese goods to 125% and then dropping it to 30% on May 14, 2025. On July 7, 2025, the U.S. Administration announced that the pause on country-specific reciprocal tariff rates will continue until August 1, 2025. Since then, the U.S. Administration has issued letters to certain countries, announcing potential changes to their reciprocal rates, including Bangladesh and India which could be subject to a 35% and 25% tariff rate respectively.

Accordingly, the tariff rates which are currently in effect are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A 10% "reciprocal" tariff for products of all countries except China, Canada, and Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 30% tariffs on products of China.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 25% general tariffs apply to most products from Mexico and Canada that are not deemed United States-Mexico-Canada Agreement (USMCA) originating, subject to sector-specific rates where applicable.

Such tariffs create additional uncertainty for our business. For example, it is difficult to predict whether the country-specific tariffs which have been paused will eventually be applied, and, if they are applied, whether they will be applied as initially imposed. The U.S. Administration is reportedly engaged in trade negotiations with multiple countries seeking to lift or mitigate reciprocal tariffs.

It is our understanding that products qualifying under the Dominican Republic - Central America - United States Free Trade Agreement (CAFTA-DR) and those under preference programs from Haiti continue to be exempt from ordinary duties. While the 10% currently in effect reciprocal tariff does apply to such products, relief is provided for the value of U.S. content in imported products, provided certain thresholds are met. The Company expects this measure to allow for significant tariff savings given the prevalence of its use of U.S. origin cotton and yarn in its production supply chain in the CAFTA-DR region and Bangladesh manufacturing hubs. With respect to tariffs on imports from China and India, the Company has limited exposure to sourcing from these countries.

The Company has and will continue to monitor the international trade environment and actively explore mitigation strategies with a view to adapting its business and operations as necessary. The Company believes that its vertically integrated low-cost manufacturing operations position it well and provides it with flexibility to navigate recent tariff developments announced thus far. However, the situation has been characterized by dynamic and important evolution and therefore remains difficult to predict. While the Company currently expects to be able to largely mitigate the impacts of the reciprocal and other tariffs announced to date through various means, including but not limited to supply chain flexibility and pricing action, there can be no assurance that such mitigation strategies will be effective and offset, in whole or in part, the impact of the tariffs on our business. See our risk factor disclosure regarding international trade agreements and international trade regulations in section 15.0 of our 2024 annual MD&A "Risks and Uncertainties" as well as section 2.0 of this MD&A "Caution Regarding Forward-Looking Statements".

QUARTERLY REPORT - Q2 2025 P.7

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**4.0 STRATEGY** 

***Gildan Sustainable Growth Strategy***

Building on a strong foundation, in 2022 the Company launched its "Gildan Sustainable Growth" (GSG) strategy focused on driving organic top and bottom-line growth through three key pillars – capacity expansion, innovation, and ESG. We believe that by leveraging our competitive advantage as a low-cost, vertically integrated manufacturer and successfully executing on well-defined capacity expansion plans, delivering value-driven and innovative products, and leading ESG practices, we will be well positioned to drive strong revenue growth, profitability and effective asset utilization, all of which are expected to allow us to deliver compelling shareholder value creation.

The three pillars of our GSG strategy are:

***Capacity-driven growth:*** *Leveraging our strong competitive advantage as a low-cost vertically integrated manufacturer as we execute on well-defined plans to expand and optimize our global production capacity to support our long-term growth plans*

Executing on our well-defined plans, we have strengthened our vertical integration by expanding our yarn-spinning capabilities through the acquisition and modernization of Frontier Yarns. We have also completed the first phase of development of a large vertically integrated textile and sewing complex in Bangladesh, as described in more detail in subsection 3.2.2 entitled "Manufacturing" in this MD&A.

***Innovation:*** *Driving leadership in innovation across the organization and all areas of operations aimed at delivering high-quality, value-driven products, increased speed-to-market, operational efficiencies and a reduced environmental footprint*

The Company has identified and defined specific key initiatives, as well as investments aimed at driving innovation in our product development and manufacturing processes, distribution and final products, including fabric features, product fit, fabric adaptability to evolving printing and decorating techniques, and ESG-friendly product attributes. We developed a new proprietary cotton technology by re-engineering our entire process from the yarn through to the finished process, enhancing fabric softness, all while improving printability. In 2025, we announced the release of new products, including additions such as the new Light Cotton™ collection and our Softstyle™ Midweight Fleece collection. We also recently introduced our new Plasma Print Technology aiming to enhance the direct-to-garment printing process by reducing the need for pre-treatment and designed to offer softer fabrics, brighter colors, improved ink coverage, and enhanced print consistency. We are also actively investing in digital tools, predictive analytics, and artificial intelligence to accelerate decision-making across the organization, streamline processes, and optimize supply chain planning.

***ESG:*** *Further increasing our ESG focus across all operations and leveraging our strong ESG standing and progress to enhance our value proposition to all our stakeholders*

In 2025, Gildan embarked on its fourth year of implementing its Next Generation ESG strategy, which encompasses a broad range of initiatives. These include reducing carbon footprint and water intensity, fostering a circular economy, supporting regional economic development, ensuring respect for human rights, and maintaining safety standards throughout the supply chain. The strategy also embraces a commitment to people, with a focus on investing in our workforce, promoting culture and belonging, in addition to enhancing ESG transparency. This strategy includes 10 core targets focused on five different pillars: Climate Energy and Water; Circularity; Human Capital Management; Long Term Value Creation; and Transparency and Disclosure. For more detailed information regarding the process of these initiatives, please refer to Gildan's 2024 ESG report. Information in our 2024 ESG Report does not form part of and is not incorporated by reference in this MD&A.

QUARTERLY REPORT - Q2 2025 P.8

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.0 OPERATING RESULTS**

**5.1 Non-GAAP financial measures** 

We use non-GAAP financial measures and ratios to assess our operating and financial performance, financial condition and leverage, and liquidity. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. In this MD&A, we use non-GAAP financial measures and ratios including: adjusted net earnings; adjusted earnings before income taxes; adjusted diluted EPS; adjusted income tax expense, adjusted effective income tax rate; adjusted gross profit; adjusted gross margin; adjusted selling, general and administrative expenses (adjusted SG&A expenses); adjusted SG&A expenses as a percentage of net sales; adjusted operating income; adjusted operating margin; and adjusted EBITDA to measure our performance and financial condition from one period to the next, which excludes the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because we believe such measures provide meaningful information to investors and management on the Company's operating and financial performance and financial condition. We also use non-GAAP financial measures including free cash flow, total debt, net debt, net debt leverage ratio and working capital.

We refer the reader to section 15.0 entitled "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A for the definition and complete reconciliation of all non-GAAP financial measures used and presented by the Company to the most directly comparable IFRS measures.

**5.2 Summary of quarterly results - GAAP basis**

The table below sets forth certain summarized unaudited quarterly financial data for net sales, net earnings, net earnings per share (basic and diluted) and weighted average number of shares (basic and diluted), for the eight most recently completed quarters. This quarterly information is unaudited and has been prepared on a GAAP basis in accordance with IAS 34 of IFRS. The financial results for any quarter are not necessarily indicative of the results to be expected for any future period.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| For the three months ended <br>*(in $ millions, except share and per share amounts or otherwise indicated)* | **Q2 2025** | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
| Net sales | **918.5** | 711.7 | 821.5 | 891.1 | 862.2 | 695.8 | 782.7 | 869.9 |
| Net earnings | **137.9** | 84.7 | 132.3 | 131.5 | 58.4 | 78.7 | 153.3 | 127.4 |
| Net earnings per share: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic<sup>(1)</sup> | **0.91** | 0.56 | 0.86 | 0.82 | 0.35 | 0.47 | 0.89 | 0.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted<sup>(1)</sup> | **0.91** | 0.56 | 0.86 | 0.82 | 0.35 | 0.47 | 0.89 | 0.73 |
| Weighted average number of shares outstanding *(in '000s)*: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | **150762** | 151875 | 153975 | 160862 | 168005 | 168869 | 171495 | 175087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | **150815** | 151990 | 154369 | 161027 | 168139 | 168977 | 171806 | 175348 |

---

(1) Quarterly EPS may not add to year-to-date EPS due to rounding.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.9

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.2.1 Seasonality and other factors affecting the variability of results and financial condition**

Our results of operations for interim and annual periods are impacted by the variability of certain factors, including, but not limited to, changes in end-use demand and customer demand, our customers' decisions to increase or decrease their inventory levels, changes in our sales mix, and fluctuations in selling prices and raw material costs. While our products are sold on a year-round basis, our business experiences seasonal changes in demand which result in quarterly fluctuations in operating results. Although certain products have seasonal demand peak periods, competitive dynamics may influence the timing of customer purchases causing seasonal trends to vary somewhat from year to year. Historically, demand for T-shirts is lowest in the fourth quarter and highest in the second quarter of the year, when distributors purchase inventory for the peak summer selling season. Historically, demand for fleece is typically highest in advance of the fall and winter seasons, in the second and third quarters of the year. Sales of hosiery and underwear are typically higher during the second half of the year, during the back-to-school period and the Christmas holiday selling season. These seasonal sales trends also result in fluctuations in our inventory levels throughout the year.

Our results are also impacted by fluctuations in the price of raw materials and other input costs. Cotton and polyester fibers are the primary raw materials used in the manufacture of our products, and we also use chemicals, dyestuffs, and trims, which we purchase from a variety of suppliers. Cotton prices are affected by consumer demand and global supply, which may be impacted by weather conditions in any given year, speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus consumer countries, and other factors that are generally unpredictable. While we enter into purchase contracts and derivative financial instruments in advance of delivery to establish firm prices for the cotton component of our yarn requirements, our realized cotton costs can fluctuate significantly between interim and annual reporting periods. Energy costs in our results of operations are also affected by fluctuations in crude oil, natural gas, and petroleum prices, which can also influence transportation costs and the cost of related items used in our business, such as polyester fibers, chemicals, dyestuffs, and trims. Changes in raw material costs are initially reflected in the cost of inventory and only impact net earnings when the respective inventories are sold.

Business acquisitions may affect the comparability of results. In addition, management decisions to consolidate or reorganize operations, including the closure of facilities, may result in significant restructuring costs in an interim or annual period. Subsection 5.4.4 entitled "Restructuring and acquisition-related costs (recovery)" in this MD&A contains a discussion of costs related to the Company's restructuring actions and business acquisitions. Share repurchases have reduced our number of shares outstanding and increased our net earnings per share (EPS). The effect of asset write-downs, including allowances for expected credit losses, provisions for discontinued inventories, and impairments of long-lived assets can also affect the variability of our results. Our results of operations over the past seven quarters have been impacted by higher than usual SG&A expenses, due to costs relating to proxy contest and leadership changes and related matters (Q4 2023: $6.3 million, Q1 2024: $19.6 million, Q2 2024: $57.2 million, Q3 2024: $5.5 million, Q4 2024: $0.4 million; Q1 2025: $0.9 million and Q2 2025: $1.1 million), as explained in sections 5.4.3 and 15.0 of this MD&A, partially offset by the favorable impact of Barbados jobs credit (Q4 2023 and Q1 2024: nil, Q2 2024: $17.2 million, Q3 2024: $6.8 million, Q4 2024: $17.8 million, Q1 2025: $8.1 million, and Q2 2025: $11.6 million). Our fiscal 2024 results of operations were also impacted by tax reforms announced in Q2 2024, including the enactment of the OECD's Pillar Two global minimum tax regime in Canada and Barbados, as well as an increase in the applicable corporate tax rate in Barbados to 9%. The impacts of these jobs credits and tax reforms were initially accounted for in Q2 2024, retroactive to January 1, 2024.

Our reported amounts for net sales, cost of sales, SG&A expenses, and financial expenses or income are impacted by fluctuations in certain foreign currencies versus the U.S. dollar as described in the "Financial risk management" section of this MD&A. The Company periodically uses derivative financial instruments to manage risks related to fluctuations in foreign exchange rates.

QUARTERLY REPORT - Q2 2025 P.10

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.3 Selected financial information**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in $ millions, except per share amounts or otherwise indicated)* | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, except per share amounts or otherwise indicated)* | **Jun 29, 2025** | Jun 30, 2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| *(in $ millions, except per share amounts or otherwise indicated)* | **Jun 29, 2025** | Jun 30, 2024 | $% | **Jun 29,<br>2025** | Jun 30,<br>2024 | $% |
| Net sales | **918.5** | 862.2 | 6.5% | **1630.2** | 1558.0 | 4.6% |
| Gross profit | **289.4** | 262.0 | 10.5% | **511.3** | 473.1 | 8.1% |
| Adjusted gross profit<sup>(1)</sup> | **289.4** | 262.0 | 10.5% | **511.3** | 473.1 | 8.1% |
| SG&A expenses | **81.7** | 123.6 | (33.9)% | **169.1** | 228.9 | (26.1)% |
| Adjusted SG&A expenses<sup>(1)</sup> | **80.7** | 66.5 | 21.3% | **167.1** | 152.1 | 9.9% |
| Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | n.m. | **13.1** | (2.1) | n.m. |
| Operating income | **199.5** | 141.2 | 41.3% | **329.1** | 246.3 | 33.6% |
| Adjusted operating income<sup>(1)</sup> | **208.7** | 195.5 | 6.8% | **344.2** | 321.0 | 7.2% |
| Adjusted EBITDA<sup>(1)</sup> | **246.3** | 232.3 | 6.0% | **412.1** | 389.4 | 5.8% |
| Financial expenses | **32.0** | 24.3 | 31.8% | **61.9** | 47.0 | 31.6% |
| Income tax expense | **29.6** | 58.5 | (49.5)% | **44.7** | 62.2 | (28.2)% |
| Adjusted income tax expense<sup>(1)</sup> | **30.8** | 46.5 | (33.8)% | **46.6** | 50.2 | (7.2)% |
| Net earnings | **137.9** | 58.4 | 136.2% | **222.6** | 137.1 | 62.4% |
| Adjusted net earnings<sup>(1)</sup> | **145.9** | 124.7 | 17.0% | **235.7** | 223.8 | 5.3% |
| Basic EPS | **0.91** | 0.35 | 160.0% | **1.47** | 0.81 | 81.5% |
| Diluted EPS | **0.91** | 0.35 | 160.0% | **1.47** | 0.81 | 81.5% |
| Adjusted diluted EPS<sup>(1)</sup> | **0.97** | 0.74 | 31.1% | **1.56** | 1.33 | 17.3% |
| Gross margin<sup>(2)</sup> | **31.5%** | 30.4% | 1.1 pp | **31.4%** | 30.4% | 1.0 pp |
| Adjusted gross margin<sup>(1)</sup> | **31.5%** | 30.4% | 1.1 pp | **31.4%** | 30.4% | 1.0 pp |
| SG&A expenses as a percentage of net sales<sup>(3)</sup> | **8.9%** | 14.3% | (5.4) pp | **10.4%** | 14.7% | (4.3) pp |
| Adjusted SG&A expenses as a percentage of net sales<sup>(1)</sup> | **8.8%** | 7.7% | 1.1 pp | **10.3%** | 9.8% | 0.5 pp |
| Operating margin<sup>(4)</sup> | **21.7%** | 16.4% | 5.3 pp | **20.2%** | 15.8% | 4.4 pp |
| Adjusted operating margin<sup>(1)</sup> | **22.7%** | 22.7% |  | **21.1%** | 20.6% | 0.5 pp |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Jun 29, 2025** | Dec 29, 2024 | |
| | **Jun 29, 2025** | Dec 29, 2024 | Variation<br>$% |
| Total assets | **4001.9** | 3715.1 | 7.7% |
| Total non-current financial liabilities | **1856.3** | 1235.9 | 50.2% |
| Long-term debt (including current portion) | **1856.3** | 1535.9 | 20.9% |
| Net debt<sup>(1)</sup> | **1848.5** | 1568.6 | 17.8% |
| Quarterly cash dividend declared per common share | &nbsp;&nbsp;&nbsp;**0.226** | 0.205 | 10.2% |
| Net debt leverage ratio<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;**2.2** | 1.9 | n/a |

---

n.m. = not meaningful

n/a = not applicable

(1) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) Gross margin is defined as gross profit divided by net sales.

(3) SG&A expenses as a percentage of net sales are defined as SG&A expenses divided by net sales.

(4) Operating margin is defined as operating income divided by net sales.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.11

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.4 Operating review** 

**5.4.1 Net sales**

Net sales by major product groups were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | $% | **Jun 29,<br>2025** | Jun 30,<br>2024 | $% |
| Activewear | **822.2** | 736.5 | 11.6% | **1469.6** | 1328.6 | 10.6% |
| Hosiery and underwear<sup>(1)</sup> | **96.3** | 125.6 | (23.3)% | **160.6** | 229.3 | (30.0)% |
| Total net sales | **918.5** | 862.1 | 6.5% | **1630.2** | 1557.9 | 4.6% |

---

(1) Also includes intimates and other fringe products.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

Net sales were derived from customers located in the following geographic areas:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | $% | **Jun 29,<br>2025** | Jun 30,<br>2024 | $% |
| United States | **825.6** | 763.7 | 8.1% | **1458.1** | 1381.7 | 5.5% |
| Canada | **32.0** | 27.5 | 16.5% | **60.0** | 52.8 | 13.5% |
| International | **60.9** | 70.9 | (14.1)% | **112.1** | 123.4 | (9.2)% |
| Total net sales | **918.5** | 862.1 | 6.5% | **1630.2** | 1557.9 | 4.6% |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

Higher net sales for the three and six months ended June 29, 2025, reflected sales increases in the Activewear category, partially offset by sales declines in the Hosiery and Underwear category. Second quarter and year-to-date Activewear sales increased year over year by 11.6% and 10.6%, respectively, driven by higher sales volumes and, to a lesser extent, favourable product mix and higher net selling prices. The Company continued to gain market share in key growth categories and saw a positive market response to recently introduced new products which feature key innovations, including our new Soft Cotton Technology. In parallel with solid sales to North American distributors, we observed continued momentum with National account customers, driven by our strong overall competitive positioning and as we continued to benefit from recent changes in the industry landscape. International sales decreased by 14.1% in the second quarter as weak demand conditions persisted in Asia and LATAM, and Europe experienced some softness as well. As for the Hosiery and underwear category, sales decreased $29 million and $69 million during the three and six months ended June 29, 2025, respectively, reflecting less favourable volume and mix, broader market weakness as well as the phase out of the Under Armour business impacting the first quarter of 2025.

**5.4.2 Gross profit**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Gross profit | **289.4** | 262.0 | 27.4 | **511.3** | 473.1 | 38.2 |
| Gross margin | **31.5%** | 30.4% | 1.1 pp | **31.4%** | 30.4% | 1.0 pp |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

The increase in gross profit for the three months and six months ended June 29, 2025 was driven by the increase in sales and higher gross margins. The increase in gross margin for the three months ended June 29, 2025 compared to the same period last year is mainly a result of lower raw material and manufacturing costs and favourable pricing, while the increase in gross margin for the six months ended June 29, 2025 was primarily driven by lower raw material costs and, to a lesser extent, by favourable pricing.

QUARTERLY REPORT - Q2 2025 P.12

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.4.3 Selling, general and administrative expenses (SG&A)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
|  |  |  |  | 45837 |  |  |
| SG&A expenses | **81.7** | 123.6 | (41.9) | **169.1** | 228.9 | (59.8) |
| Adjustment for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters<sup>(1)</sup> | **(1.1)** | (57.2) | 56.1 | **(2.0)** | (76.8) | 74.8 |
| Adjusted SG&A expenses<sup>(2)</sup> | **80.6** | 66.4 | 14.2 | **167.1** | 152.1 | 15.0 |
| SG&A expenses as a percentage of net sales | **8.9%** | 14.3% | (5.4) pp | **10.4%** | 14.7% | (4.3) pp |
| Adjusted SG&A expenses as a percentage of net sales<sup>(2)</sup> | **8.8%** | 7.7% | 1.1 pp | **10.3%** | 9.8% | 0.5 pp |

---

(1) See subsection entitled "Certain adjustments to non-GAAP measures" for additional information on adjustments in section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

For the three months ended June 29, 2025, SG&A expenses were $82 million, down from $124 million in the same period last year which included $57 million in charges related to the proxy contest, leadership changes and related matters. Excluding these charges, which were primarily incurred in the prior year, adjusted SG&A expenses were up 21% to $81 million, or 8.8% of net sales, compared to 7.7% of net sales for the same period last year. The increase in adjusted SG&A in the quarter reflects higher general and administrative expenses and increased variable compensation. Furthermore, the benefit from the Barbados jobs credit was $12 million this quarter, down from $17 million in the prior year, as detailed below. For the six months ended June 29, 2025, the increase in adjusted SG&A expenses mainly reflects higher variable compensation and distribution costs.

During the second quarter of fiscal 2024, the Government of Barbados enacted a jobs credit, in order to foster economic activity and employment in Barbados. The jobs credit was effective retroactively to January 1, 2024. The Company recognized $12 million (2024 - $17 million) for the three months ended June 29, 2025, and $20 million year-to-date (2024 - $17 million) as a reduction of SG&A expenses in the condensed interim consolidated statements of earnings and comprehensive income for this jobs credit. The retroactive benefit of the jobs credit for the first quarter of 2024 was accounted for in the second quarter of 2024.

**5.4.4 Restructuring and acquisition-related costs (recovery)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Employee termination and benefit costs | **3.6** |  | 3.6 | **3.6** |  | 3.6 |
| Exit, relocation and other costs | **4.6** | 2.0 | 2.6 | **7.3** | 3.2 | 4.1 |
| Net loss (gain) on disposal, and write-downs of property, plant and equipment, right-of-use assets and computer software related to exit activities | **(0.1)** | (4.9) | 4.8 | **2.2** | (5.3) | 7.5 |
| Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | 11.0 | **13.1** | (2.1) | 15.2 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

Restructuring and acquisition-related costs for the six months ended June 29, 2025 include $6.7 million of costs relating to the exit of third-party sewing contractor relationships in the south of Haiti, $3.1 million for the closure of a U.S. yarn-spinning facility, and other charges including costs relating to restructuring activities initiated in previous years. Restructuring and acquisition-related recoveries for the six months ended June 30, 2024 included $5.3 million in gains on disposals primarily relating to the sublease of a closed distribution facility in the western United States, partially offset by costs of $3.2 million mainly related to the completion of previously initiated restructuring activities.

QUARTERLY REPORT - Q2 2025 P.13

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.4.5 Operating income and adjusted operating income**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Operating income | **199.5** | 141.2 | 58.3 | **329.1** | 246.3 | 82.8 |
| Adjustments for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restructuring and acquisition-related costs (recovery)<sup>(1)</sup> | **8.1** | (2.9) | 11.0 | **13.1** | (2.1) | 15.2 |
| &nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters<sup>(1)</sup> | **1.1** | 57.2 | (56.1) | **2.0** | 76.8 | (74.8) |
| Adjusted operating income<sup>(2)</sup> | **208.7** | 195.5 | 13.2 | **344.2** | 321.0 | 23.2 |
| Operating margin | **21.7%** | 16.4% | 5.3 pp | **20.2%** | 15.8% | 4.4 pp |
| Adjusted operating margin<sup>(2)</sup> | **22.7%** | 22.7% |  | **21.1%** | 20.6% | 0.5 pp |

---

(1) See subsection entitled "Certain adjustments to non-GAAP measures" for additional information on adjustments in section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

The $58 million increase in operating income for the second quarter of fiscal 2025 compared to the same period last year was mainly due to the lower impact from the proxy contest, leadership changes and related matters costs. Furthermore, higher gross profit resulting from the increase in net sales and gross margins also contributed to the year over year increase, partly offset by higher restructuring and acquisition-related costs. For the six months ended June 29, 2025, compared to the same period last year, the increase in operating income also reflected items mentioned above.

Adjusted operating income (which excludes the costs for the proxy contest and leadership changes and related matters, as well as restructuring and acquisition-related costs) was $209 million or 22.7% of net sales in the second quarter of 2025, up $13 million year over year. Adjusted operating income for the year to date was $344 million, up $23 million year over year, due to higher net sales and a higher adjusted operating margin. The 50 bps increase in adjusted operating margin reflected a higher gross margin, partially offset by higher adjusted SG&A expenses as a percentage of net sales.

**5.4.6 Financial expenses, net** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Interest expense on financial liabilities recorded at amortized cost | **25.6** | 18.1 | 7.5 | **49.7** | 34.1 | 15.6 |
| Bank and other financial charges | **5.7** | 5.9 | (0.2) | **11.2** | 10.8 | 0.4 |
| Interest accretion on discounted lease obligations | **1.3** | 1.2 | 0.1 | **2.7** | 2.2 | 0.5 |
| Interest accretion on discounted provisions | **0.1** | 0.1 |  | **0.2** | 0.2 |  |
| Foreign exchange (gain) loss | **(0.7)** | (1.1) | 0.4 | **(1.9)** | (0.4) | (1.5) |
| Financial expenses, net | **32.0** | 24.2 | 7.8 | **61.9** | 46.9 | 15.0 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

The increase in interest expense for the three and six months ended June 29, 2025 of $8 million and $16 million, respectively, was mainly due to the impact of higher average borrowing levels, with the Company continuing share repurchases and repurchasing 16.1 million shares over the past 12 months, partially offset by slightly lower effective interest rates on our long-term debt. Foreign exchange gains and losses in both periods relate primarily to the revaluation of net monetary assets denominated in foreign currencies.

QUARTERLY REPORT - Q2 2025 P.14

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.4.7 Income taxes**

The Company's average effective income tax rate is calculated as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Income tax expense<sup>(5)</sup> | **29.6** | 58.5 | (28.9) | **44.7** | 62.2 | (17.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) recovery relating to restructuring charges and other adjustments | **1.2** | (0.5) | 1.7 | **1.9** | (0.5) | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of Barbados tax rate changes on the revaluation of deferred income tax assets and liabilities | **—** | (11.5) | 11.5 | **—** | (11.5) | 11.5 |
| Adjusted income tax expense<sup>(3)</sup> | **30.8** | 46.5 | (15.7) | **46.6** | 50.2 | (3.6) |
| Earnings before income taxes | **167.5** | 116.9 | 50.6 | **267.3** | 199.3 | 68.0 |
| Adjustments<sup>(1)(4)</sup> | **9.2** | 54.3 | (45.1) | **15.1** | 74.7 | (59.6) |
| Adjusted earnings before income taxes<sup>(3)</sup> | **176.7** | 171.2 | 5.5 | **282.4** | 274.0 | 8.4 |
| Average effective income tax rate<sup>(2)</sup> | **17.7%** | 50.1% | (32.4) pp | **16.7%** | 31.2% | (14.5) pp |
| Adjusted effective income tax rate<sup>(3)</sup> | **17.4%** | 27.2% | (9.8) pp | **16.5%** | 18.3% | (1.8) pp |

---

(1) See subsection entitled "Certain adjustments to non-GAAP measures" for additional information on adjustments in section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) Average effective income tax rate is calculated as income tax expense divided by earnings before income taxes.

(3) Adjusted income tax expense and adjusted earnings before income tax are non-GAAP financial measures, and adjusted effective income tax rate is a non-GAAP ratio calculated as adjusted income tax expense divided by adjusted earnings before income taxes. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(4) Adjustments for the three and six months ended June 29, 2025 of $9.2 million and $15.1 million, respectively, (2024 - $54.3 million and $74.7 million) include costs relating to proxy contest and leadership changes and related matters and restructuring and acquisition-related costs.

(5) The tax expense for the three months ended June 30, 2024, includes an amount of $39.1 million reflecting the impact of the tax measures enacted by the Government of Barbados in the second quarter of 2024. Of the $39.1 million, $15.5 million relates to the retroactive application of these tax measures from January 1, 2024.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

For the three months ended June 29, 2025, income tax expense was $29.6 million, compared to $58.5 million in the same period last year. The decrease in income tax expense is mainly due to tax measures enacted by the Government of Barbados in the second quarter of fiscal year 2024. The retroactive impact of these measures to January 1, 2024 was recognized in the second quarter of fiscal year 2024, including an income tax expense of $11.5 million for the revaluation of deferred tax assets and liabilities in Barbados. These measures included an increase in the applicable corporate tax rate to 9% (previously a sliding scale of 5.5% to 1%) and the introduction of a qualified domestic top-up tax, which imposes a top-up tax on Barbados entities subject to the OECD's Pillar Two global minimum tax regime, resulting in an effective tax rate of 15% in Barbados.

For the six months ended June 29, 2025, income tax expense was $44.7 million, compared to $62.2 million in the same period last year. The decrease in income tax expense is mainly due to a deferred income tax charge of $11.5 million in fiscal 2024, for the revaluation of deferred tax assets and liabilities in Barbados as a result of the tax measures enacted by the Government of Barbados in the second quarter of fiscal year 2024 as discussed above.

The decrease in the effective income tax rate on a GAAP basis for the six months ended June 29, 2025 compared to the same period last year (from 31.2% to 16.7%) was mainly due to the impact of $76.8 million in costs relating to the proxy contest, leadership changes, and related matters incurred in Canada in 2024, whereby these charges did not yield any tax benefit in Canada.

QUARTERLY REPORT - Q2 2025 P.15

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**5.5 Net earnings, adjusted net earnings, and earnings per share measures**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, except per share amounts)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Net earnings | **137.9** | 58.4 | 79.5 | **222.6** | 137.1 | 85.5 |
| Adjustments for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restructuring and acquisition-related costs (recovery)<sup>(1)</sup> | **8.1** | (2.9) | 11.0 | **13.1** | (2.1) | 15.2 |
| &nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters<sup>(1)</sup> | **1.1** | 57.2 | (56.1) | **2.0** | 76.8 | (74.8) |
| &nbsp;&nbsp;&nbsp;Income tax expense relating to the above-noted adjustments | **(1.2)** | 0.5 | (1.7) | **(1.9)** | 0.5 | (2.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax recovery related to the revaluation of deferred income tax assets and liabilities | **—** | 11.5 | (11.5) | **—** | 11.5 | (11.5) |
| Adjusted net earnings<sup>(2)</sup> | **145.9** | 124.7 | 21.2 | **235.8** | 223.8 | 12.0 |
| Basic EPS | **0.91** | 0.35 | 0.56 | **1.47** | 0.81 | 0.66 |
| Diluted EPS | **0.91** | 0.35 | 0.56 | **1.47** | 0.81 | 0.66 |
| Adjusted diluted EPS<sup>(2)</sup> | **0.97** | 0.74 | 0.23 | **1.56** | 1.33 | 0.23 |

---

(1) See subsection entitled "Certain adjustments to non-GAAP measures" for additional information on adjustments in section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

The increase in GAAP net earnings for the second quarter and the first six months of 2025 compared to the same period last year was mainly due to the increase in operating income and lower income tax expenses (due to the impact of GMT in Canada and Barbados in the corresponding prior period), partly offset by higher financial expenses. The increase in adjusted net earnings for the second quarter and the first six months of 2025 compared to the same period in the prior year was mainly due to the increase in adjusted operating income, as well as a lower adjusted income tax expense, partly offset by higher financial expenses. Year over year changes in GAAP diluted EPS and adjusted diluted EPS also reflect the benefit of share repurchase net of the related additional financing expenses.

QUARTERLY REPORT - Q2 2025 P.16

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**6.0 FINANCIAL CONDITION**

**6.1 Current assets and current liabilities**

---

| | | | |
|:---|:---|:---|:---|
| *(in $ millions)* | **Jun 29, 2025** | Dec 29, 2024 | Variation |
| Cash and cash equivalents | **86.0** | 98.8 | (12.8) |
| Trade accounts receivable | **708.0** | 542.4 | 165.6 |
| Inventories | **1215.5** | 1110.6 | 104.9 |
| Prepaid expenses, deposits and other current assets | **125.4** | 107.0 | 18.4 |
| Accounts payable and accrued liabilities | **(497.5)** | (490.1) | (7.4) |
| Income tax payable | **(34.0)** | (29.7) | (4.3) |
| Current portion of lease obligations | **(19.7)** | (17.7) | (2.0) |
| Current portion of long-term debt | **—** | (300.0) | 300.0 |
| Total working capital<sup>(1)</sup> | **1583.7** | 1021.3 | 562.4 |
| Current ratio<sup>(2)</sup> | **3.9** | 2.2 | n.m. |

---

n.m. = not meaningful

(1) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) Current ratio is defined as current assets divided by current liabilities.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The increase in trade accounts receivable (which are net of accrued sales discounts) was mainly due to the impact of seasonally higher sales, as well as higher days sales outstanding (DSO) as a result of longer payment terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The increase in inventories was mainly due to increases in raw material and work-in-progress volumes to support new programs, as well as higher finished goods inventories mainly due to seasonally higher volumes, and the impact of reciprocal tariffs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prepaid expenses, deposits and other current assets are higher mainly due to higher supplier advances, partially offset by lower derivative financial instrument assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The increase in accounts payable and accrued liabilities was mainly due to the impact of reciprocal tariffs, higher raw material and other purchases resulting from higher production levels, as well as higher derivative financial instrument liabilities, partially offset by seasonally lower accruals for variable compensation and the payment of the 2024 share buyback tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The decrease in current portion of long-term is due to the repayment of the delayed draw term loan on March 19, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Working capital was $1,583.7 million as at June 29, 2025, compared to $1,021.3 million as at December 29, 2024. The current ratio at the end of the second quarter of fiscal 2025 was 3.9, compared to 2.2 at the end of fiscal 2024.

QUARTERLY REPORT - Q2 2025 P.17

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**6.2 Property, plant and equipment, right-of-use assets, intangible assets, and goodwill**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in $ millions)* | Property, plant<br>and equipment | Right-of-use <br>assets | Intangible<br>assets | Goodwill |
| Balance, December 29, 2024 | 1173.2 | 95.6 | 253.3 | 271.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 56.6 | 9.4 | 2.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | (57.8) | (7.8) | (6.3) |  |
| &nbsp;&nbsp;&nbsp;Net carrying amounts of disposals and write-downs | (3.8) | (0.2) |  |  |
| **Balance, June 29, 2025** | **1168.2** | **97.0** | **249.9** | **271.7** |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** The slight decrease in property, plant and equipment reflects the impact of depreciation, largely offset by capital expenditures related to textile and sewing manufacturing operations, as well as modernization of yarn facilities obtained through the acquisition of Frontier Yarns in December 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The slight increase in right-of-use assets mainly reflects the impact of manufacturing and distribution facility lease agreements and renewals entered into during the first half of fiscal 2025, partially offset by the impact of depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intangible assets are comprised of customer contracts and relationships, trademarks, license agreements, non-compete agreements, and computer software. The decrease in intangible assets mainly reflects the amortization of $6.3 million.

**6.3 Other non-current assets and non-current liabilities**

---

| | | | |
|:---|:---|:---|:---|
| *(in $ millions)* | **Jun 29, 2025** | Dec 29, 2024 | Variation |
| Deferred income tax assets | **19.5** | 21.8 | (2.3) |
| Other non-current assets | **60.7** | 40.8 | 19.9 |
| Long-term debt | **(1856.3)** | (1235.9) | (620.4) |
| Lease obligations | **(98.5)** | (99.7) | 1.2 |
| Deferred income tax liabilities | **(26.5)** | (28.6) | 2.1 |
| Other non-current liabilities | **(46.3)** | (56.8) | 10.5 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The increase in other non-current assets is mainly due to an increase in the fair value of derivative financial instrument assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• See section 8.0 of this MD&A entitled "Liquidity and capital resources" and subsection 7.4 of this MD&A entitled "Cash flows from (used in) financing activities", for the discussion on long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other non-current liabilities include provisions, employee benefit obligations and certain derivative financial instrument liabilities.

QUARTERLY REPORT - Q2 2025 P.18

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**7.0 CASH FLOWS** 

**7.1 Cash flows from (used in) operating activities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Net earnings | **137.9** | 58.4 | 79.5 | **222.6** | 137.1 | 85.5 |
|  Adjustments for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **37.6** | 36.8 | 0.8 | **67.9** | 68.4 | (0.5) |
| &nbsp;&nbsp;&nbsp;Non-cash restructuring gains related to property, plant and equipment, right-of-use assets, and computer software | **(0.1)** | (4.9) | 4.8 | **2.2** | (5.4) | 7.6 |
| &nbsp;&nbsp;&nbsp;Cash settled share-based awards in connection with outgoing executives termination benefits | **—** | (15.4) | 15.4 | **—** | (15.4) | 15.4 |
| &nbsp;&nbsp;&nbsp;(Gain) Loss on disposal of PP&E and right-of-use assets | **(0.1)** |  | (0.1) | **(0.2)** |  | (0.2) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | **2.3** | 13.8 | (11.5) | **1.3** | 13.0 | (11.7) |
| &nbsp;&nbsp;&nbsp;Share-based compensation | **9.5** | 37.0 | (27.5) | **18.4** | 43.2 | (24.8) |
| &nbsp;&nbsp;&nbsp;Other | **0.6** | (11.7) | 12.3 | **(1.1)** | (12.4) | 11.3 |
| Changes in non-cash working capital balances | **0.4** | 26.0 | (25.6) | **(265.1)** | (115.9) | (149.2) |
| Cash flows from operating activities | **188.1** | 140.0 | 48.1 | **46.0** | 112.6 | (66.6) |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flows from operating activities were $46 million for the six months ended June 29, 2025, compared to cash flows from operating activities of $113 million in the corresponding period last year. The decrease was mainly due to the impact of a higher increase in non-cash working capital, as explained below, partially offset by higher net earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-cash working capital increased by $265 million during the six months ended June 29, 2025, compared to an increase of $116 million during the six months ended June 30, 2024. The higher increase was mainly due to a higher increase in inventories, an increase in prepaid expenses, deposits and other current assets compared to a decrease in the same period last year, as well as a lower increase in accounts payable and accrued liabilities. See section 6.1 "Current assets and current liabilities" for additional explanations on the variances between December 30, 2024 and June 29, 2025 impacting non-cash working capital.

QUARTERLY REPORT - Q2 2025 P.19

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**7.2 Cash flows from (used in) investing activities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Purchase of property, plant and equipment | **(33.1)** | (35.5) | 2.4 | **(55.3)** | (77.7) | 22.4 |
| Purchase of intangible assets | **(1.3)** | (0.7) | (0.6) | **(2.4)** | (2.5) | 0.1 |
| Proceeds from disposal of assets held for sale, and other disposals of PP&E | **0.2** | 0.1 | 0.1 | **0.2** | 0.2 |  |
| Cash flows used in investing activities | **(34.2)** | (36.1) | 1.9 | **(57.5)** | (80.0) | 22.5 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flows used in investing activities were $58 million for the six months ended June 29, 2025, compared to cash flows used in investing activities of $80 million in the corresponding period last year. The change was mainly due to planned lower capital expenditures in 2025 following the completion of the first textile and sewing complex in Bangladesh.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital expenditures<sup>1</sup> for the six months ended June 29, 2025 are described in section 6.2 of this MD&A entitled "Property, plant and equipment, right-of-use assets, intangible assets, and goodwill".

**7.3 Free cash flow**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Cash flows from operating activities | **188.2** | 140.1 | 48.1 | **46.0** | 112.7 | (66.7) |
| Cash flows used in investing activities | **(34.2)** | (36.2) | 2.0 | **(57.5)** | (80.1) | 22.6 |
| Adjustment for: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions | **—** |  |  | **—** |  |  |
| Free cash flow<sup>(1)</sup> | **154.0** | 103.9 | 50.1 | **(11.5)** | 32.6 | (44.1) |

---

(1) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The year over year decrease in free cash flow of $44 million for the six months ended June 29, 2025 was mainly due to a $67 million decrease in operating cash flows, which was mainly caused by an increase in non-cash working capital that was largely in line with the Company's expectations (see section 7.1 of this MD&A entitled "Cash flows from (used in) operating activities"), partially offset by lower cash flows used in investing activities (as explained in section 7.2. of this MD&A entitled "Cash flows from (used in) investing activities").

(1) Capital expenditures include purchases of property, plant and equipment and intangible assets.

QUARTERLY REPORT - Q2 2025 P.20

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**7.4 Cash flows from (used in) financing activities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation | **Jun 29,<br>2025** | Jun 30,<br>2024 | Variation |
| Increase (decrease) in amounts drawn under revolving long-term bank credit facility | **5.0** | 79.0 | (74.0) | **80.0** | 234.0 | (154.0) |
| Proceeds from issuance of Senior unsecured notes | **—** |  |  | **486.3** |  | 486.3 |
| Repayment of delayed draw term loan | **—** |  |  | **(300.0)** |  | (300.0) |
| Payment of lease obligations | **(4.5)** | (3.0) | (1.5) | **(8.9)** | (6.8) | (2.1) |
| Dividends paid | **(68.5)** | (69.2) | 0.7 | **(68.5)** | (69.2) | 0.7 |
| Proceeds from the issuance of shares | **0.4** | 1.2 | (0.8) | **9.2** | 1.6 | 7.6 |
| Repurchase and cancellation of shares | **(76.4)** | (112.5) | 36.1 | **(138.0)** | (169.2) | 31.2 |
| Share repurchases for settlement of non-Treasury RSUs | **—** |  |  | **(25.8)** | (13.9) | (11.9) |
| Payment of tax on shares repurchased for cancellation under normal course issuer bid (NCIB) program | **—** |  |  | **(14.9)** |  | (14.9) |
| Withholding taxes paid pursuant to the settlement of non-Treasury RSUs | **(0.1)** | (0.1) |  | **(21.3)** | (8.2) | (13.1) |
| Cash flows used in financing activities | **(144.1)** | (104.6) | (39.5) | **(1.9)** | (31.7) | 29.8 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flows used in financing activities for the six months ended June 29, 2025 of $2 million (2024 - $32 million) were mainly related to the repurchase and cancellation of common shares under the NCIB programs as discussed in section 8.7 of this MD&A, the payment of dividends, and funds used for the settlement of the stock-based awards vesting during the quarter, largely offset by net cash inflows relating to long-term debt.

**8.0 LIQUIDITY AND CAPITAL RESOURCES**

**8.1 Capital allocation framework**

Historically, our primary uses of funds have been for working capital requirements, capital expenditures, business acquisitions, and the payment of dividends and share repurchases, which we have funded with cash generated from operations and with funds drawn from our long-term debt facilities. We have established a capital allocation framework intended to enhance sales and earnings growth as well as shareholder returns. After funding working capital needs, our first priority of cash use is to fund our organic growth with the required capital investments. Beyond these requirements, our next priorities for capital allocation are to support our dividends and for opportunistic complementary acquisitions with a preference towards opportunities that could enhance our supply chain model. In addition, we have used excess cash to repurchase shares under normal course issuer bid programs.

The Company has set a net debt leverage target ratio<sup>2</sup> of 1.5 to 2.5 times pro-forma adjusted EBITDA for the trailing twelve months, which it believes will provide an efficient capital structure and a framework within which it can execute on its capital allocation priorities. We expect that cash flows from operating activities and the unutilized financing capacity under our long-term debt facilities, as well as our ability to obtain additional debt financing if required, will continue to provide us with sufficient liquidity to fund our organic growth strategy, including anticipated working capital requirements and projected capital expenditures (which are currently planned to be at levels close to 5% of net sales during the next three years), as well as for returning capital to shareholders through dividends and continued share repurchases in line with our leverage framework and value considerations. Refer to note 26 of the audited annual consolidated financial statements for the year ended December 29, 2024 for a discussion on the Company's liquidity risk.

(2) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

QUARTERLY REPORT - Q2 2025 P.21

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**8.2 Long-term debt and net debt and net debt leverage ratio**

The Company's long-term debt as at June 29, 2025 is described below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Effective interest rate**<sup>(1)</sup> | **Principal amount** | **Principal amount** | **Maturity date** |
| *(in $ millions, or otherwise indicated)* | **Effective interest rate**<sup>(1)</sup> | **Jun 29, 2025** | Dec 29, 2024 | **Maturity date** |
| **Non-current portion of long-term debt** |  |  |  |  |
| Revolving long-term bank credit facility, interest at variable U.S. interest rate<sup>(2)(3)</sup> | **5.9%** | **80.0** |  | **Mar 2030** |
| Senior unsecured Canadian notes, Series 1, interest at fixed rate of 4.36%, payable semi-annually | **5.5%** | **366.6** | 347.1 | **Nov 2029** |
| Senior unsecured Canadian notes, Series 2, interest at fixed rate of 4.71%, payable semi-annually | **5.8%** | **146.6** | 138.8 | **Nov 2031** |
| Senior unsecured Canadian notes, Series 3, interest at CORRA plus 1.26%, payable quarterly | **5.7%** | **110.0** |  | **Mar 2028** |
| Senior unsecured Canadian notes, Series 4, interest at fixed rate of 3.630%, payable semi-annually | **5.6%** | **146.6** |  | **Mar 2028** |
| Senior unsecured Canadian notes, Series 5, interest at fixed rate of 4.149%, payable semi-annually | **5.6%** | **256.6** |  | **Nov 2030** |
| Term loan, interest at variable U.S. interest rate, payable monthly<sup>(2)(4)</sup> | **4.9%** | **300.0** | 300.0 | **Jun 2026** |
| Term loan, interest at variable U.S. interest rate, payable monthly<sup>(5)</sup> | **5.9%** | **300.0** | 300.0 | **Aug 2029** |
| Notes payable, interest at fixed rate of 2.91%, payable semi-annually<sup>(6)</sup> | **2.9%** | **100.0** | 100.0 | **Aug 2026** |
| Notes payable, interest at Adjusted SOFR plus a spread of 1.57%, payable quarterly<sup>(6)(7)</sup> | **2.9%** | **50.0** | 50.0 | **Aug 2026** |
|  |  | **1856.4** | 1235.9 |  |
| **Current portion of long-term debt** |  |  |  |  |
| Delayed draw term loan (DDTL), interest at variable U.S. interest rate, payable monthly<sup>(2)(4)(8)</sup> | **n/a** | **—** | 300.0 | **n/a** |
|  |  | **—** | 300.0 |  |
| **Long-term debt (including current portion)** |  | **1856.4** | 1535.9 |  |

---

n/a = not applicable

(1)Represents the annualized effective interest rate for the six months ended June 29, 2025, including the impact of interest rate swaps, and cross currency interest rate swaps, where applicable.

(2)Secured Overnight Financing Rate (SOFR) advances at adjusted Term SOFR (includes a 0% to 0.25% reference rate adjustment) plus a spread ranging from 1% to 3%.

(3)The Company's committed unsecured revolving long-term bank credit facility of $1 billion provides for an annual extension which is subject to the approval of the lenders. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the credit facility agreement and its amendments). In addition, an amount of $12.8 million (December 29, 2024 - $10.8 million) has been committed against this facility to cover various letters of credit.

(4)The unsecured term loan is non-revolving and can be prepaid in whole or in part at any time with no penalties. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments). The term loan matures on June 30, 2026.

(5)The term loan facility can be prepaid in whole or in part at any time with no penalties. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments).

(6)The unsecured notes issued to accredited investors in the U.S. private placement market can be prepaid in whole or in part at any time, subject to the payment of a prepayment penalty as provided for in the Note Purchase Agreement.

(7)Adjusted SOFR rate is determined on the basis of floating rate notes that bear interest at a floating rate plus a spread of 1.57%.

(8)On May 16, 2024, the Company extended the term of the DDTL to May 26, 2025. The DDTL was fully repaid on March 19, 2025.

QUARTERLY REPORT - Q2 2025 P.22

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

On August 30, 2024, the Company entered into an unsecured five-year term loan agreement for a total principal amount of $300 million. The term loan is non-revolving and provides for a spread added to the adjusted Term SOFR which is based on the total net debt to EBITDA ratio (as defined in the term loan agreement).

On November 22, 2024, the Company issued at par, 4.362% Series 1 senior unsecured notes ("Series 1 notes") with a principal amount of $500 million in Canadian dollars ($357.1 million in U.S. dollars), which will mature on November 22, 2029. Additionally, on the same date, the Company issued at par, 4.711% Series 2 senior unsecured notes ("Series 2 notes") with a principal amount of $200 million in Canadian dollars ($142.9 million in U.S. dollars), which will mature on November 22, 2031. The notes were offered in Canada on a private placement basis.

The Series 1 notes and Series 2 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the combined principal at US$500 million and the interest at 5.49% and 5.765% respectively. Interest on these senior unsecured Canadian notes is payable semi-annually.

On March 13, 2025, the Company issued floating rate Series 3 senior unsecured notes ("Series 3 notes") with a principal amount of $150 million in Canadian dollars ($104 million in U.S. dollars), which will mature on March 13, 2028. The Series 3 floating rate notes were issued at par and bear interest at a rate equal to the daily compounded CORRA plus 1.26% annually. On the same date, the Company issued at par, 3.630% Series 4 senior unsecured notes ("Series 4 notes") with a principal amount of $200 million in Canadian dollars ($139 million in U.S. dollars), which will mature on March 13, 2028. Additionally, on the same date, the Company issued 4.149% Series 5 senior unsecured notes ("Series 5 notes") with a principal amount of $350 million in Canadian dollars ($243 million in U.S. dollars), which will mature on November 22, 2030. The notes were offered in Canada on a private placement basis.

The Series 3 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$104 million and converts the interest payment to SOFR plus 1.405%.

The Series 4 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$139 million. The Series 4 notes also have a fixed-to-floating interest rate swap to convert the fixed interest rate to SOFR plus 1.425%.

The Series 5 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$243 million and the interest at 5.635%.

All of these hedging instruments relating to the Senior unsecured notes are for the same duration as the hedged note.

On March 19, 2025, the Company repaid its delayed draw term loan.

Under the terms of the revolving facility, term loan facilities and U.S. private notes, the Company is required to comply with certain covenants, including maintenance of financial ratios. The Company was in compliance with all financial covenants at June 29, 2025. The Company expects to maintain compliance with its covenants over the next twelve months, based on its current expectations and forecasts.

---

| | | |
|:---|:---|:---|
| *(in $ millions)* | **Jun 29, 2025** | Dec 29, 2024 |
| Long-term debt (including current portion) | **1856.3** | 1535.9 |
| Bank indebtedness | **—** |  |
| Foreign currency component of derivative financial instrument on Canadian Senior unsecured notes | **(40.1)** | 14.1 |
| Lease obligations (including current portion) | **118.3** | 117.4 |
| Total debt<sup>(1)</sup> | **1934.5** | 1667.4 |
| Cash and cash equivalents | **(86.0)** | (98.8) |
| Net debt<sup>(1)</sup> | **1848.5** | 1568.6 |

---

(1) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.23

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

The primary measure used by the Company to monitor its financial leverage is its net debt leverage ratio as defined in section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A. Gildan's net debt leverage ratio as at June 29, 2025 was 2.2 times (1.9 times at December 29, 2024) which was within the Company's target range of 1.5 times to 2.5 times. The Company's net debt leverage ratio is calculated as follows:

---

| | | |
|:---|:---|:---|
| *(in $ millions, or otherwise indicated)* | **Jun 29, 2025** | Dec 29, 2024 |
| Adjusted EBITDA for the trailing twelve months<sup>(1)</sup> | **856.5** | 833.8 |
| Adjustment for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions | **—** |  |
| Pro-forma adjusted EBITDA for the trailing twelve months | **856.5** | 833.8 |
| Net debt<sup>(1)</sup> | **1848.5** | 1568.6 |
| Net debt leverage ratio<sup>(1)(2)</sup> | **2.2** | 1.9 |

---

(1) This is a non-GAAP financial measure or ratio. See section 15.0 "Definition and reconciliation of non-GAAP financial measures and related ratios" in this MD&A.

(2) The Company's net debt to EBITDA ratio for purposes of its term loans and revolving facility was 2.3x and for purposes of U.S. private placement notes was 2.3x at June 29, 2025.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

The total net debt to EBITDA ratios (as defined in each of the Company's revolving long-term bank credit facility, term loans and note purchase agreements and their amendments) vary from the definition of the Company's non-GAAP ratio and non-GAAP financial measures "net debt leverage ratio" and "adjusted EBITDA" respectively, as presented in this MD&A in certain respects. The definitions in the loan and note purchase agreements include letters of credit in net debt, exclude certain cash balances, and are based on accounting for all leases as operating leases, while the Company's reported net debt leverage ratio reflects lease accounting in accordance with IFRS 16 Leases. In addition, adjustments permitted to EBITDA in the loan and note purchase agreements vary from the adjustments used by the Company in calculating its adjusted EBITDA non-GAAP financial measure. As a result of these differences, our total net debt to EBITDA ratio for purposes of our term loans and revolving facility was 2.3x (2.0x at December 29, 2024), and for purposes of our U.S. private placement note agreements was 2.3x at June 29, 2025 (2.2x at December 29, 2024).

The Company, upon approval from its Board of Directors, may issue or repay long-term debt, issue or repurchase shares, or undertake other activities as deemed appropriate under the specific circumstances.

**8.3 Off-balance sheet arrangements and maturity analysis of contractual obligations**

In the normal course of business, we enter into contractual obligations that will require us to disburse cash over future periods. The following table sets forth the maturity of our contractual obligations by period as at June 29, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in $ millions)* | **Carrying amount** | Contractual cash flows | Less than 1 year | 1 to 3 years | 4 to 5 years | More than 5 years |
| Accounts payable and accrued liabilities | **497.5** | 497.5 | 497.5 |  |  |  |
| Long-term debt<sup>(1)</sup> | **1856.3** | 1856.3 |  | 706.6 | 746.5 | 403.2 |
| Interest obligations<sup>(2)</sup> | **—** | 377.5 | 100.7 | 157.0 | 102.6 | 17.2 |
| Purchase and other obligations<sup>(3)</sup> | **—** | 600.0 | 429.2 | 130.2 | 24.3 | 16.3 |
| Lease obligations | **118.3** | 142.4 | 29.0 | 48.0 | 29.5 | 35.9 |
| Total contractual obligations | **2472.1** | 3473.7 | 1056.4 | 1041.8 | 902.9 | 472.6 |

---

(1) See Section 8.2 "Long-term debt and net debt and net debt leverage ratio" for additional details on the Company's long-term debt (including the current portion thereof).

(2) Interest obligations include expected interest payments on long-term debt as at June 29, 2025 (assuming balances remain outstanding through to maturity). For variable rate debt, the Company has applied the rate applicable at June 29, 2025 to the currently established maturity dates. These amounts include the effects of the hedging instruments.

(3) Purchase and other obligations includes commitments to purchase raw materials and equipment, as well as minimum royalty obligations and other contractual commitments.

QUARTERLY REPORT - Q2 2025 P.24

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

As disclosed in note 23 to our fiscal 2024 audited annual consolidated financial statements, we have granted financial guarantees, irrevocable standby letters of credit, and surety bonds to third parties to indemnify them in the event the Company and some of our subsidiaries do not perform their contractual obligations. As at June 29, 2025, the maximum potential liability under these guarantees was $79 million, of which $17 million was for surety bonds and $62 million was for financial guarantees and standby letters of credit.

**8.4 Derivative instruments**

The Company may periodically use derivative financial instruments to manage risks related to fluctuations in foreign exchange rates, commodity prices, interest rates, and changes in the price of our common shares under our share-based compensation plans. Derivative financial instruments are not used for speculative purposes. As at June 29, 2025, the Company's outstanding derivative financial instruments (most of which are designated as effective hedging instruments) consist of foreign exchange and commodity forward, option, cross currency and interest rate swap contracts on senior notes, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the Company's term loans and unsecured notes. For more information about our derivative financial instruments, please refer to notes 9 and 10 to the unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025.

**8.5 Outstanding share data**

Our common shares are listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) under the symbol GIL. As at July 28, 2025, there were 149,314,370 common shares issued and outstanding along with 1,700,718 dilutive restricted share units (Treasury RSUs) outstanding. Each Treasury RSU entitles the holder to receive one common share from treasury at the end of the vesting period, subject to the attainment of performance conditions, without any monetary consideration being paid to the Company. Treasury RSUs are primarily used as part of special long-term plans, to attract candidates or for retention purposes, and their vesting conditions, including any performance objectives, and are determined by the Board of Directors at the time of grant.

**8.6 Declaration of dividend**

On July 30, 2025, the Board of Directors declared a cash dividend of $0.226 per share for an expected aggregate payment of $34 million which will be paid on September 15, 2025 on all of the issued and outstanding common shares of the Company, rateably and proportionately, to the holders of record on August 21, 2025. This dividend is an "eligible dividend" for the purposes of the Income Tax Act (Canada) and any other applicable provincial legislation pertaining to eligible dividends.

As part of the Company's capital allocation framework as described in section 8.1 of this MD&A, the Board of Directors considers several factors when deciding to declare quarterly cash dividends, including the Company's present and future earnings, cash flows for working capital requirements, capital expenditures, debt covenant and repayment obligations, capital requirements, the macro-economic environment, and present and future regulatory and legal restrictions.

The Company's dividend payout policy and the declaration of dividends are subject to the discretion of the Board of Directors and, consequently, there can be no assurances that Gildan's dividend policy will be maintained or that dividends will be declared in respect of any quarter or other future periods. The declaration of dividends by the Board of Directors is ultimately dependent on the Company's operations and financial results which are, in turn, subject to various assumptions and risks, including those set out in this MD&A.

**8.7 Normal course issuer bid (NCIB)**

On July 31, 2024, the Company received approval from the TSX to renew its NCIB program commencing on August 9, 2024, to purchase for cancellation a maximum of 16,106,155 common shares, representing approximately 10% of the Company's public float, as at July 26, 2024 (the reference date for the renewed NCIB). The Company is authorized to make purchases under the renewed NCIB until August 8, 2025, in accordance with the requirements of the TSX. Purchases are to be made by means of open market transactions on both the TSX and the New York Stock Exchange (NYSE), or alternative U.S. or Canadian trading systems if eligible, or by such other means as may be permitted by securities regulatory authorities, including pre-arranged crosses, exempt offers, private agreements under an issuer bid exemption order issued by securities regulatory authorities and block purchases of common shares.

QUARTERLY REPORT - Q2 2025 P.25

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

In accordance with the requirements of the TSX, the Company may purchase, in addition to purchases made on other exchanges including the NYSE, up to a maximum of 80,209 common shares daily through the facilities of the TSX, which represents 25% of the Average Daily Trading Volume (ADTV) for the most recently completed six-month period noted above.

In connection with its 2024-2025 NCIB program, the Company entered into an automatic share purchase plan (ASPP) with a designated broker which allows for the purchase of common shares under the NCIB at times when the Company would ordinarily not be permitted to purchase its common shares due to regulatory restrictions or self-imposed trading blackout periods.

A share buyback tax of 2% was enacted in Canada during the second quarter of 2024. The share buyback tax is charged to retained earnings.

During the six months ended June 29, 2025, the Company repurchased for cancellation a total of 2,894,900 common shares under its NCIB program for total costs of $141 million (including $2.5 million of taxes on share repurchases), of which $5 million was charged to share capital and the balance was charged to retained earnings.

**9.0 LEGAL PROCEEDINGS**

**9.1 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.

We record a liability when we believe that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. We review these matters at least quarterly and adjust these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events, pertaining to a particular case.

**10.0 FINANCIAL RISK MANAGEMENT**

The Company is exposed to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk, interest rate risk, commodity price risk, as well as risks arising from changes in the price of our common shares under our share-based compensation plans. Please refer to note 25 of the audited annual consolidated financial statements for the year ended December 29, 2024 for additional details, and for more information about our derivative financial instruments, please refer to notes 9 and 10 of the unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025.

**11.0 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

Our material accounting policies are described in note 3 to our fiscal 2024 audited annual consolidated financial statements. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

**11.1 Critical judgments in applying accounting policies**

The following are critical judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determination of cash-generating units (CGUs)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income taxes

QUARTERLY REPORT - Q2 2025 P.26

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**12.0 ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS NOT YET APPLIED**

**12.1 Accounting policies**

The Company's unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025 were prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). The Company applied the same accounting policies in the preparation of the unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 29, 2025 as those disclosed in note 3 of its fiscal 2024 audited annual consolidated financial statements.

**12.2 New accounting standards and interpretations not yet applied**

**IFRS 9 Financial Instruments ("IFRS 9") and IFRS 7 Financial Instruments: Disclosures ("IFRS 7")**

In May 2024, IASB issued limited amendments to IFRS 9 and IFRS 7. These amendments provide clarity on the timing of recognition and derecognition of financial assets and liabilities, the assessment of contractual cash flow characteristics, and the resulting classification and disclosure of financial assets with environmental, social, and governance-linked or other contingent features. Additionally, the amendments clarify that a financial liability is derecognized on the settlement date, with the accounting policy choice to derecognize a financial liability settled using an electronic payment system before the settlement date, provided specific conditions are met. Additional disclosures are required for financial instruments with contingent features and investments in equity instruments designated at fair value through other comprehensive income with these amendments. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt only the amendments to the classification of financial assets. The Company is currently evaluating the potential impact of these amendments on its consolidated financial statements.

**IFRS 18 Presentation and Disclosure in Financial Statements**

On April 9, 2024, the IASB issued IFRS 18 to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1 unchanged. The standard sets out requirements on presentation and disclosures in financial statements. It introduces a defined structure for the statement of income composed of required categories and subtotals. The standard also introduces specific disclosure requirements for management-defined performance measures and a reconciliation between these measures and the most similar subtotal specified in IFRS, which must be disclosed in a single note. IFRS 18 applies for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of IFRS 18 on its consolidated financial statements.

**13.0 INTERNAL CONTROL OVER FINANCIAL REPORTING**

**Changes in internal controls and procedures**

There have been no changes in the Company's internal control over financial reporting that occurred during the period beginning on March 31, 2025 and ended on June 29, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**14.0 RISKS AND UNCERTAINTIES**

In note 25 of our 2024 audited annual consolidated financial statements we describe certain risks related to financial instruments and in our 2024 Annual MD&A under the section "Risks and uncertainties", we describe the principal risks that could have a material and adverse effect on our financial condition, results of operations or business, cash flows, or the trading price of our common shares, as well as cause actual results to differ materially from our expectations expressed in or implied by our forward-looking statements. The risks listed below are not the only risks that could affect the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our financial condition, results of operations, cash flows, or business. The risks described in our 2024 Annual MD&A include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to implement our growth strategies and plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to compete effectively

QUARTERLY REPORT - Q2 2025 P.27

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to integrate acquisitions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be negatively impacted by changes in general economic and financial conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on a small number of significant customers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our customers do not commit to purchase minimum quantities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to anticipate, identify, or react to changes in consumer preferences and trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to manage production and inventory levels effectively in relation to changes in customer demand

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be negatively impacted by fluctuations and volatility in the price of raw materials used to manufacture our products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on key suppliers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be negatively impacted by climate, political, social, and economic risks, natural disasters, pandemics, and endemics in the countries in which we operate or from which we source production

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with laws and regulations in the various countries in which we operate and the potential negative effects of litigation and/or regulatory actions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on certain international trade (including multilateral and bilateral) agreements and preference programs and are subject to evolving international trade regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Factors or circumstances that could increase our effective income tax rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with environmental and health and safety regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Global climate change could have an adverse impact on our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with product safety regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be negatively impacted by changes in our relationship with our employees or changes to domestic and foreign employment regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience negative publicity as a result of actual, alleged, or perceived violations of labour laws or international labour standards, unethical labour, and other business practices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to protect our intellectual property rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely significantly on our information systems for our business operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be negatively impacted by data security breaches or data privacy violations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rapid developments in artificial intelligence (AI) could adversely impact our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depend on key management and our ability to attract and/or retain key personnel

See section 3.4 "Recent Events" for a discussion on the tariffs imposed by the U.S. administration and related risks and uncertainties.

**15.0 DEFINITION AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND RELATED RATIOS**

We use non-GAAP financial measures, as well as non-GAAP ratios to assess our operating and financial performance, financial condition and leverage, and liquidity. The terms and definitions of the non-GAAP financial measures used in this MD&A and a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure are provided below. The non-GAAP financial measures are presented on a consistent basis for all periods presented in this MD&A. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

**Non-GAAP financial measures and related ratios**

In this MD&A we use non-GAAP financial measures including adjusted net earnings, adjusted earnings before income taxes, adjusted income tax expense, adjusted gross profit, adjusted SG&A expenses, adjusted operating income, adjusted EBITDA, as well as non-GAAP ratios including adjusted diluted EPS, adjusted effective income tax rate, adjusted gross margin, adjusted SG&A expenses as a percentage of net sales, and adjusted operating margin. These financial metrics are used to measure our performance and financial condition from one period to the next, which excludes the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating and financial performance, and because we believe such measures provide meaningful information on the Company's operating and financial performance and financial condition. Excluding these items does not imply they are non-recurring. We also use non-GAAP financial measures including free cash flow, total debt, net debt, net debt leverage ratio and working capital.

**Certain adjustments to non-GAAP measures**

As noted above certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of the Company's operating and financial results and could potentially distort

QUARTERLY REPORT - Q2 2025 P.28

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial measure and ratio are explained below:

*Restructuring and acquisition-related costs (recovery)*

Restructuring and acquisition-related costs (recoveries) are comprised of costs directly related to significant exit activities, including the closure of business locations and sale of business locations or the relocation of business activities, significant changes in management structure, as well as transaction, exit, and integration costs incurred pursuant to business acquisitions. Restructuring and acquisition-related costs are included as an adjustment in arriving at adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted earnings before income taxes, adjusted diluted EPS, and adjusted EBITDA. For the three and six months ended June 29, 2025, restructuring and acquisition-related costs of $8.1 million and $13.1 million, respectively, (2024 - $2.9 million (recovery) and $2.1 million (recovery)), were recognized. Subsection 5.4.4 entitled "Restructuring and acquisition-related costs (recovery)" in this MD&A contains a detailed discussion of these costs.

*Costs relating to proxy contest and leadership changes and related matters*

On December 11, 2023, the Company's then Board of Directors (the "Previous Board") announced the termination of the Company's President and Chief Executive Officer, Glenn Chamandy. On such date, the Previous Board appointed Vince Tyra as President and Chief Executive Officer, and Mr. Tyra took office in the first quarter of fiscal 2024, effective on January 15, 2024. Following the termination of Mr. Chamandy, shareholder Browning West and others initiated a campaign and proxy contest against the Previous Board, proposing a new slate of Directors and requesting the reinstatement of Mr. Chamandy as President and Chief Executive Officer. In the second quarter of 2024, on April 28, 2024, in advance of the May 28, 2024, Annual General Meeting of Shareholders ("Annual Meeting"), the Previous Board announced a refreshed Board of Directors ("Refreshed Board") that resulted in the immediate replacement of five Directors, with two additional Directors staying on temporarily but not standing for re-election at the Annual Meeting. On May 23, 2024, five days prior to the Annual Meeting, the Refreshed Board and Mr. Tyra resigned, along with Arun Bajaj, the Company's Executive Vice-President, Chief Human Resources Officer (CHRO) and Legal Affairs. The Refreshed Board appointed Browning West's nominees to the Board of Directors (the "New Board"), effective as of that date. On May 24, 2024, the New Board reinstated Mr. Chamandy as President and Chief Executive Officer. On May 28, 2024, the New Board was elected by shareholders at the Annual Meeting. The Company incurred significant expenses primarily at the direction of the Previous Board and the Refreshed Board, including: (i) legal, communication, proxy advisory, financial and other advisory fees relating to the proxy contest and related matters and the termination and subsequent reinstatement of Mr. Chamandy; (ii) legal, financial and other advisory fees with respect to a review process initiated by the Previous Board following receipt of a confidential non-binding expression of interest to acquire the Company; (iii) special senior management retention awards; (iv) severance and termination benefits relating to outgoing executives; and (v) incremental director meeting fees and insurance premiums. In addition, subsequent to the Annual Meeting, the Corporate Governance and Social Responsibility Committee (the "CGSRC") recommended to the New Board, and the New Board approved, back-pay compensation for Mr. Chamandy (who did not receive any severance payment following his termination on December 11, 2023), relating to his reinstatement, including the reinstatement of share-based awards that were canceled by the Previous Board. In light of the strong shareholder support received for its successful campaign and the fact that the Refreshed Board resigned in advance of the Annual Meeting, the CGSRC also recommended to the New Board, and the New Board approved, the reimbursement of Browning West's legal and other advisory expenses relating to the proxy contest, in the amount of $9.4 million in the second quarter of 2024.

The total costs relating to these non-recurring events ("Costs relating to proxy contest and leadership changes and related matters") amounted to $1.1 million and $2.0 million for the three and six months ended June 29, 2025 (2024 - $57.2 million and $76.8 million), respectively, as itemized in the table below with corresponding footnotes. Such costs are included in selling, general and administrative expenses. The impact of the below charges is included as adjustments in arriving at adjusted SG&A expenses, adjusted SG&A expenses as a percentage of net sales, adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, adjusted net earnings, adjusted diluted EPS, and adjusted EBITDA.

QUARTERLY REPORT - Q2 2025 P.29

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Advisory fees on shareholder matters<sup>(1)</sup> | **1.1** | 18.0 | **1.7** | 33.3 |
| Severance and other termination benefits<sup>(2)</sup> | **—** | 21.6 | **—** | 21.6 |
| Compensation expenses relating to Glenn Chamandy's termination and subsequent reinstatement as President and Chief Executive Officer<sup>(3)</sup> | **—** | 7.8 | **—** | 8.9 |
| Incremental costs relating to the Previous Board and Refreshed Board<sup>(4)</sup> | **—** | 7.4 | **0.1** | 7.4 |
| Costs relating to assessing external interests in acquiring the Company<sup>(5)</sup> | **—** | 0.5 | **—** | 3.0 |
| Special retention awards, net of jobs credit<sup>(6)</sup> | **—** | 1.9 | **0.2** | 2.6 |
| Costs relating to proxy contest and leadership changes and related matters | **1.1** | 57.2 | **2.0** | 76.8 |

---

(1) Relates to advisory, legal and other expenses for the proxy contest and shareholder matters. Charges incurred during the three and six months ended June 29, 2025 of $1.1 million and $1.7 million, respectively, (2024 - $18.0 million and $33.3 million), include:

–$1.1 million and $1.7 million for the three and six months ended June 29, 2025, respectively, (2024 - $8.6 million and $23.9 million), of advisory, legal and other fees and expenses related to the proxy contest and shareholder matters. The 2024 charges were incurred mainly at the direction of the Previous Board and the Refreshed Board; and

–$9.4 million of accrued expenses in the second quarter of 2024 for the reimbursement of advisory, legal and other fees and expenses incurred by Browning West in relation to the proxy contest (refer to note 8(c)) of the condensed interim consolidated financial statements for additional information).

(2) Relates to the payout of severance and other termination benefits to Mr. Tyra and Mr. Bajaj pursuant to existing severance arrangements approved and made by the Refreshed Board in the context of the proxy contest, just prior to its conclusion in May 2024. The cash payouts in the second quarter of 2024 for severance and termination benefits totaled $24.4 million, of which $15.3 million was for Mr. Tyra and $9.1 million was for Mr. Bajaj. The respective charges included in selling, general and administrative expenses during the second quarter of 2024 totaled $21.6 million (of which $14.1 million was for Mr. Tyra and $7.5 million was for Mr. Bajaj), and included $12.3 million for accelerated vesting of share-based awards as well $9.3 million in other termination benefits for these executives.

(3) Salary and other accrued benefits related to back-pay as part of the reinstatement of Mr. Chamandy by the New Board in Q2 2024, including the reinstatement of share-based awards which had been canceled by the Previous Board. Net charges incurred during the three and six months ended June 30, 2024 of $7.8 million and $8.9 million, respectively, included:

–$1.7 million for backpay and accruals for short-term incentive plan benefits;

–$14.6 million of stock-based compensation expense for past service costs related to the reinstatement of Mr. Chamandy's 2022 and 2023 long-term incentive program (LTIP) grants (for which a reversal of compensation expense of approximately $6.0 million was recorded in the fourth quarter of fiscal 2023);

–$1.3 million and $2.4 million, respectively, of stock-based compensation expense adjustments relating to Mr. Chamandy's 2021 LTIP share-based grant which vested in 2024; and

–The reversal of a $9.8 million accrual for severance in the second quarter of 2024 (which had been accrued for in the fourth quarter of 2023), as Mr. Chamandy forfeited any termination benefit entitlement in connection with the award of back-pay and reinstatement of canceled share-based awards as noted above.

(4) The Company incurred nil and $0.1 million (2024 - $7.4 million and $7.4 million), respectively, of incremental costs relating to the Previous Board and Refreshed Board. The fiscal 2025 charge relates to the increase in the value of unpaid deferred share units (DSUs). The fiscal 2024 charges includes $4.8 million for a Directors and Officers run off insurance policy, $0.4 million for special board meeting fee payments, and $2.2 million for the increase in value of the deferred share units (DSU) liability.

QUARTERLY REPORT - Q2 2025 P.30

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

(5) Relates to advisory, legal and other expenses with respect to the announced review process initiated by the Previous Board following receipt of a confidential non-binding expression of interest to acquire the Company.

(6) Stock-based compensation expenses of nil and $0.2 million for the three and six months ended June 29, 2025 (2024 - $1.9 million and $2.6 million), relating to special retention awards, net of jobs credit.

**Adjusted net earnings and adjusted diluted EPS**

Adjusted net earnings are calculated as net earnings before restructuring and acquisition-related costs, impairment (impairment reversal) of intangible assets, net insurance gains, gain on sale and leaseback, costs relating to proxy contest and leadership changes and related matters, and income tax expense or recovery relating to these items. Adjusted net earnings also excludes income taxes related to the re-assessment of the probability of realization of previously recognized or de-recognized deferred income tax assets, and income taxes relating to the revaluation of deferred income tax assets and liabilities as a result of statutory income tax rate changes in the countries in which we operate. Adjusted diluted EPS is calculated as adjusted net earnings divided by the diluted weighted average number of common shares outstanding. The Company uses adjusted net earnings and adjusted diluted EPS to measure its net earnings performance from one period to the next, and in making decisions regarding the ongoing operations of its business, without the variation caused by the impacts of the items described above. The Company excludes these items because they affect the comparability of its net earnings and diluted EPS and could potentially distort the analysis of net earnings trends in its business performance. The Company believes adjusted net earnings and adjusted diluted EPS are useful to investors because they help identify underlying trends in our business that could otherwise be masked by certain expenses, write-offs, charges, income or recoveries that can vary from period to period. Excluding these items does not imply they are non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, except per share amounts)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Net earnings | **137.9** | 58.4 | **222.6** | 137.1 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | **13.1** | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters | **1.1** | 57.2 | **2.0** | 76.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (recovery) expense relating to restructuring charges and other items above | **(1.2)** | 0.5 | **(1.9)** | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of Barbados tax rate changes on the revaluation of deferred income tax assets and liabilities | **—** | 11.5 | **—** | 11.5 |
| Adjusted net earnings | **145.9** | 124.7 | **235.8** | 223.8 |
| Basic EPS | **0.91** | 0.35 | **1.47** | 0.81 |
| Diluted EPS | **0.91** | 0.35 | **1.47** | 0.81 |
| Adjusted diluted EPS<sup>(1)</sup> | **0.97** | 0.74 | **1.56** | 1.33 |

---

(1) This is a non-GAAP ratio. It is calculated as adjusted net earnings divided by the diluted weighted average number of common shares outstanding.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.31

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Adjusted earnings before income taxes, adjusted income tax expense, and adjusted effective income tax rate**

Adjusted effective income tax rate is defined as adjusted income tax expense divided by adjusted earnings before income taxes. Adjusted earnings before income taxes excludes restructuring and acquisition-related costs, impairment (impairment reversal) of intangible assets, net insurance gains, gain on sale and leaseback, and the impact of costs relating to proxy contest and leadership changes and related matters. Adjusted income tax expense is defined as income tax expense excluding tax rate changes resulting in the revaluation of deferred income tax assets and liabilities, income taxes relating to the re-assessment of the probability of realization of previously recognized or de-recognized deferred income tax assets, and income tax expense relating to restructuring charges and other pretax adjustments noted above. The Company excludes these adjustments because they affect the comparability of its effective income tax rate. The Company believes the adjusted effective income tax rate provides a clearer understanding of our normalized effective tax rate and financial performance for the current period and for purposes of developing its annual financial budgets. The Company believes that adjusted effective income tax rate is useful to investors in assessing the Company's future effective income tax rate as it identifies certain pre-tax expenses and gains and income tax charges and recoveries which are not expected to recur on a regular basis (in particular, non-recurring costs such as proxy contest and leadership changes and related matters incurred in the Company's Canadian legal entity which do not result in tax recoveries, and tax rate changes resulting in the revaluation of deferred income tax assets and liabilities).

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Earnings before income taxes | **167.5** | 116.9 | **267.3** | 199.3 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | **13.1** | (2.1) |
| &nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters | **1.1** | 57.2 | **2.0** | 76.8 |
| Adjusted earnings before income taxes | **176.7** | 171.2 | **282.4** | 274.0 |
| Income tax expense | **29.6** | 58.5 | **44.7** | 62.2 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax recovery (expense) relating to restructuring charges and other adjustments above | **1.2** | (0.5) | **1.9** | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of Barbados tax rate changes on the revaluation of deferred income tax assets and liabilities | **—** | (11.5) | **—** | (11.5) |
| Adjusted income tax expense | **30.8** | 46.5 | **46.6** | 50.2 |
| Average effective income tax rate<sup>(1)</sup> | **17.7%** | 50.1% | **16.7%** | 31.2% |
| Adjusted effective income tax rate<sup>(2)</sup> | **17.4%** | 27.2% | **16.5%** | 18.3% |

---

(1) Average effective income tax rate is calculated as income tax expense divided by earnings before income taxes.

(2) This is a non-GAAP ratio. It is calculated as adjusted income tax expense divided by adjusted earnings before income taxes.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.32

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Adjusted gross profit and adjusted gross margin**

Adjusted gross profit is calculated as gross profit excluding the impact of the net insurance gains in fiscal 2023. The Company uses adjusted gross profit and adjusted gross margin to measure its performance at the gross margin level from one period to the next, without the variation caused by the impacts of the item described above. The Company excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Excluding this item does not imply that it is non-recurring. The Company believes adjusted gross profit and adjusted gross margin are useful to management and investors because they help identify underlying trends in our business in how efficiently the Company uses labor and materials for manufacturing goods to our customers that could otherwise be masked by the impact of net insurance gains in prior years. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Gross profit | **289.4** | 262.0 | **511.3** | 473.1 |
| Adjustments | **—** |  | **—** |  |
| Adjusted gross profit | **289.4** | 262.0 | **511.3** | 473.1 |
| Gross margin | **31.5%** | 30.4% | **31.4%** | 30.4% |
| Adjusted gross margin<sup>(1)</sup> | **31.5%** | 30.4% | **31.4%** | 30.4% |

---

(1) This is a non-GAAP ratio. It is calculated as adjusted gross profit divided by net sales.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

**Adjusted SG&A expenses and adjusted SG&A expenses as a percentage of net sales**

Adjusted SG&A expenses are calculated as selling, general and administrative expenses excluding the impact of costs relating to proxy contest and leadership changes and related matters. The Company uses adjusted SG&A expenses and adjusted SG&A expenses as a percentage of net sales to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Excluding these items does not imply they are non-recurring. The Company believes adjusted SG&A expenses and adjusted SG&A expenses as a percentage of net sales are useful to investors because they help identify underlying trends in our business that could otherwise be masked by costs relating to the proxy contest and leadership changes and related matters, which the Company believes are unusual and non-recurring in nature. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| SG&A expenses | **81.7** | 123.6 | **169.1** | 228.9 |
| Adjustment for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters | **(1.1)** | (57.2) | **(2.0)** | (76.8) |
| Adjusted SG&A expenses | **80.6** | **66.4** | **167.1** | **152.1** |
| SG&A expenses as a percentage of net sales | **8.9%** | 14.3% | **10.4%** | 14.7% |
| Adjusted SG&A expenses as a percentage of net sales<sup>(1)</sup> | **8.8%** | 7.7% | **10.3%** | 9.8% |

---

(1) This is a non-GAAP ratio. It is calculated as adjusted SG&A expenses divided by net sales.

QUARTERLY REPORT - Q2 2025 P.33

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Adjusted operating income and adjusted operating margin**

Adjusted operating income is calculated as operating income before restructuring and acquisition-related costs and excludes impairment (impairment reversal) of intangible assets, net insurance gains in 2023, gain on sale and leaseback, and costs relating to proxy contest and leadership changes and related matters. Management uses adjusted operating income and adjusted operating margin to measure its performance at the operating income level as we believe it provides a better indication of our operating performance and facilitates the comparison across reporting periods, without the variation caused by the impacts of the items described above. The Company excludes these items because they affect the comparability of its operating results and could potentially distort the analysis of trends in its operating income and operating margin performance. The Company believes adjusted operating income and adjusted operating margin are useful to investors because they help identify underlying trends in our business in how efficiently the Company generates profit from its primary operations that could otherwise be masked by the impact of the items noted above that can vary from period to period. Excluding these items does not imply they are non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions, or otherwise indicated)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Operating income | **199.5** | 141.2 | **329.1** | 246.3 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | **13.1** | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs relating to proxy contest and leadership changes and related matters | **1.1** | 57.2 | **2.0** | 76.8 |
| Adjusted operating income | **208.7** | 195.5 | **344.2** | 321.0 |
| Operating margin | **21.7%** | 16.4% | **20.2%** | 15.8% |
| Adjusted operating margin<sup>(1)</sup> | **22.7%** | 22.7% | **21.1%** | 20.6% |

---

(1) This is a non-GAAP ratio. It is calculated as adjusted operating income divided by net sales.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.34

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Adjusted EBITDA**

Adjusted EBITDA is calculated as earnings before financial expenses net, income taxes, and depreciation and amortization, and excludes the impact of restructuring and acquisition-related costs. Adjusted EBITDA also excludes impairment (impairment reversal) of intangible assets, net insurance gains in 2023, gain on sale and leaseback, and costs relating to proxy contest and leadership changes and related matters. Management uses adjusted EBITDA, among other measures, to facilitate a comparison of the profitability of its business on a consistent basis from period-to-period and to provide a more complete understanding of factors and trends affecting our business. The Company also believes this measure is commonly used by investors and analysts to assess profitability and the cost structure of companies within the industry, as well as measure a company's ability to service debt and to meet other payment obligations, or as a common valuation measurement. The Company excludes depreciation and amortization expenses, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors. Excluding these items does not imply they are non-recurring. This measure does not have any standardized meanings prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Net earnings | **137.9** | 58.4 | **222.6** | 137.1 |
| Restructuring and acquisition-related costs (recovery) | **8.1** | (2.9) | **13.1** | (2.1) |
| Costs relating to proxy contest and leadership changes and related matters | **1.1** | 57.2 | **2.0** | 76.8 |
| Depreciation and amortization | **37.6** | 36.8 | **67.9** | 68.4 |
| Financial expenses, net | **32.0** | 24.3 | **61.9** | 47.0 |
| Income tax expense | **29.6** | 58.5 | **44.7** | 62.2 |
| Adjusted EBITDA | **246.3** | 232.3 | **412.2** | 389.4 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

**Free cash flow**

Free cash flow is defined as cash flow from operating activities, less cash flow used in investing activities excluding cash flows relating to business acquisitions. The Company considers free cash flow to be an important indicator of the financial strength and liquidity of its business, and it is a key metric used by management in managing capital as it indicates how much cash is available after capital expenditures to repay debt, to pursue business acquisitions, and/or to redistribute to its shareholders. Management believes that free cash flow also provides investors with an important perspective on the cash available to us to service debt, fund acquisitions, and pay dividends. In addition, free cash flow is commonly used by investors and analysts when valuing a business and its underlying assets. This measure does not have any standardized meanings prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| *(in $ millions)* | **Jun 29,<br>2025** | Jun 30,<br>2024 | **Jun 29,<br>2025** | Jun 30,<br>2024 |
| Cash flows from operating activities | **188.2** | 140.1 | **46.0** | 112.7 |
| Cash flows used in investing activities | **(34.2)** | (36.2) | **(57.5)** | (80.1) |
| Adjustment for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions | **—** |  | **—** |  |
| Free cash flow | **154.0** | 103.9 | **(11.5)** | 32.6 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.35

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Total debt and net debt**

Total debt is defined as the total bank indebtedness, long-term debt (including any current portion), foreign currency component of derivative financial instruments related to the cross-currency swap's notional amount, and lease obligations (including any current portion), and net debt is calculated as total debt net of cash and cash equivalents. The Company considers total debt and net debt to be important indicators for management and investors to assess the financial position and liquidity of the Company and measure its financial leverage. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | |
|:---|:---|:---|
| *(in $ millions)* | **Jun 29, 2025** | Dec 29, 2024 |
| Long-term debt (including current portion) | **1856.3** | 1535.9 |
| Bank indebtedness | **—** |  |
| Foreign currency component of derivative financial instrument on Canadian Senior unsecured notes | **(40.1)** | 14.1 |
| Lease obligations (including current portion) | **118.3** | 117.4 |
| Total debt | **1934.5** | 1667.4 |
| Cash and cash equivalents | **(86.0)** | (98.8) |
| Net debt | **1848.5** | 1568.6 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

**Net debt leverage ratio**

The net debt leverage ratio is defined as the ratio of net debt to pro-forma adjusted EBITDA for the trailing twelve months, all of which are non-GAAP measures. The pro-forma adjusted EBITDA for the trailing twelve months reflects business acquisitions made during the period, as if they had occurred at the beginning of the trailing twelve-month period. The Company has currently set a net debt leverage target ratio of 1.5 to 2.5 times pro-forma adjusted EBITDA for the trailing twelve months. The net debt leverage ratio serves to evaluate the Company's financial leverage and is used by management in its decisions on the Company's capital structure, including financing strategy. The Company believes that certain investors and analysts use the net debt leverage ratio to measure the financial leverage of the Company, including our ability to pay off our incurred debt. The Company's net debt leverage ratio differs from the net debt to EBITDA ratio that is a covenant in our loan and note agreements, and therefore the Company believes it is a useful additional measure. This measure does not have any standardized meanings prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.

---

| | | |
|:---|:---|:---|
| *(in $ millions, or otherwise indicated)* | **Jun 29, 2025** | Dec 29, 2024 |
| Adjusted EBITDA for the trailing twelve months | **856.5** | 833.8 |
| Adjustment for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions | **—** |  |
| Pro-forma adjusted EBITDA for the trailing twelve months | **856.5** | 833.8 |
| Net debt | **1848.5** | 1568.6 |
| Net debt leverage ratio<sup>(1)</sup> | **2.2** | 1.9 |

---

(1) The Company's total net debt to EBITDA ratio for purposes of its term loans and revolving facility was 2.3x (2.0x at December 29, 2024), and for purposes of U.S. private placement notes was 2.3x at June 29, 2025 (2.2x at December 29, 2024). Refer to section 8.2 of this MD&A.

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.36

------

---

| | |
|:---|:---|
| ![newheaderlogoenga.jpg](newheaderlogoenga.jpg) | MANAGEMENT'S DISCUSSION AND ANALYSIS |

---

**Working capital**

Working capital is a non-GAAP financial measure and is defined as current assets less current liabilities. Management believes that working capital, in addition to other conventional financial measures prepared in accordance with IFRS, provides information that is helpful to understand the financial condition of the Company. The objective of using working capital is to present readers with a view of the Company from management's perspective by interpreting the material trends and activities that affect the short-term liquidity and financial position of the Company, including its ability to discharge its short-term liabilities as they come due. This measure is not comparable to similarly titled measures used by other public companies.

---

| | | |
|:---|:---|:---|
| *(in $ millions)* | **Jun 29, 2025** | Dec 29, 2024 |
| Cash and cash equivalents | **86.0** | 98.8 |
| Trade accounts receivable | **708.0** | 542.4 |
| Inventories | **1215.5** | 1110.6 |
| Prepaid expenses, deposits and other current assets | **125.4** | 107.0 |
| Accounts payable and accrued liabilities | **(497.5)** | (490.1) |
| Income taxes payable | **(34.0)** | (29.7) |
| Current portion of lease obligations | **(19.7)** | (17.7) |
| Current portion of long-term debt | **—** | (300.0) |
| Working capital | **1583.7** | 1021.3 |

---

Certain minor rounding variances exist between the unaudited condensed interim consolidated financial statements and this summary.

QUARTERLY REPORT - Q2 2025 P.37

## Exhibit 99.2

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |

---

 **GILDAN ACTIVEWEAR INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

**(in thousands of U.S. dollars) - unaudited**

---

| | | |
|:---|:---|:---|
| | **June 29,<br>2025** | December 29,<br>2024 |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**86016** | $98799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable (note 4) | **708022** | 542359 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories (note 5) | **1215520** | 1110562 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses, deposits and other current assets | **125373** | 106964 |
| Total current assets | **2134931** | 1858684 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | **1168179** | 1173240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | **96974** | 95568 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | **249931** | 253319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | **271677** | 271677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **19503** | 21800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | **60659** | 40834 |
| Total non-current assets | **1866923** | 1856438 |
| Total assets | $**4001854** | $3715122 |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $**497479** | $490073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | **34015** | 29668 |
| &nbsp;&nbsp;&nbsp;Current portion of lease obligations (note 8[(](#i53a91fb0ce71425181073b3b88c65722_43)d)) | **19749** | 17749 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt (note 6) | **—** | 300000 |
| Total current liabilities | **551243** | 837490 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt (note 6) | **1856340** | 1235870 |
| &nbsp;&nbsp;&nbsp;Lease obligations (note 8[(](#i53a91fb0ce71425181073b3b88c65722_43)d)) | **98511** | 99671 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **26466** | 28630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | **46271** | 56810 |
| Total non-current liabilities | **2027588** | 1420981 |
| Total liabilities | **2578831** | 2258471 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share capital | **288025** | 268557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contributed surplus | **52939** | 69920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **1110932** | 1118201 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) (note 10) | **(28873)** | (27) |
| Total equity attributable to shareholders of the Company | **1423023** | 1456651 |
| Total liabilities and equity | $**4001854** | $3715122 |

---

See accompanying notes to unaudited condensed interim consolidated financial statements.

 QUARTERLY REPORT - Q2 2025 38

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |

---

**GILDAN ACTIVEWEAR INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS**

**AND COMPREHENSIVE INCOME**

**(in thousands of U.S. dollars, except per share data) - unaudited**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Net sales (note 14) | $**918504** | $862168 | $**1630176** | $1557964 |
| Cost of sales (note 8(f)) | **629129** | 600216 | **1118864** | 1084879 |
| Gross profit | **289375** | 261952 | **511312** | 473085 |
| Selling, general and administrative expenses (notes 8(e), 8(f)) | **81740** | 123630 | **169060** | 228868 |
| Restructuring and acquisition-related costs (recoveries) (note 7) | **8141** | (2893) | **13112** | (2095) |
| Operating income | **199494** | 141215 | **329140** | 246312 |
| Financial expenses, net (note 8[(](#i53a91fb0ce71425181073b3b88c65722_43)b)) | **31992** | 24272 | **61856** | 46998 |
| Earnings before income taxes | **167502** | 116943 | **267284** | 199314 |
| Income tax expense | **29573** | 58537 | **44673** | 62241 |
| Net earnings | **137929** | 58406 | **222611** | 137073 |
| Other comprehensive loss, net of related income taxes (note 10): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedges | **(18393)** | (12882) | **(28846)** | (8329) |
| Comprehensive income | $**119536** | $45524 | $**193765** | $128744 |
| Earnings per share (note 11): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $**0.91** | $0.35 | $**1.47** | $0.81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $**0.91** | $0.35 | $**1.47** | $0.81 |

---

See accompanying notes to unaudited condensed interim consolidated financial statements.

 QUARTERLY REPORT - Q2 2025 39

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |

---

**GILDAN ACTIVEWEAR INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**Six months ended June 29, 2025 and June 30, 2024** 

**(in thousands or thousands of U.S. dollars) - unaudited**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Share capital | Share capital | Contributed<br>surplus | Accumulated<br>other<br>comprehensive<br>income (loss) | Retained<br>earnings | Total<br>equity |
| | Number | Amount | Contributed<br>surplus | Accumulated<br>other<br>comprehensive<br>income (loss) | Retained<br>earnings | Total<br>equity |
| Balance, December 29, 2024 | 152411 | $268557 | $69920 | $(27) | $1118201 | $1456651 |
| Share-based compensation |  |  | 18294 |  |  | 18294 |
| Shares issued under employee share purchase plan | 18 | 868 |  |  |  | 868 |
| Shares issued pursuant to exercise of stock options | 283 | 11676 | (3246) |  |  | 8430 |
| Shares issued or distributed pursuant to vesting of restricted share units | 575 | 13168 | (34453) |  |  | (21285) |
| Shares repurchased for cancellation (including share buyback taxes) | (2895) | (5362) |  |  | (135664) | (141026) |
| Share repurchases for settlement of non-Treasury RSUs | (501) | (882) |  |  | (24875) | (25757) |
| Deferred compensation to be settled in non-Treasury RSUs |  |  | 1540 |  |  | 1540 |
| Dividends declared |  |  | 884 |  | (69341) | (68457) |
| Transactions with shareholders of the Company recognized directly in equity | (2520) | 19468 | (16981) |  | (229880) | (227393) |
| Cash flow hedges (note 10) |  |  |  | (28846) |  | (28846) |
| Net earnings |  |  |  |  | 222611 | 222611 |
| Comprehensive income |  |  |  | (28846) | 222611 | 193765 |
| **Balance, June 29, 2025** | **149891** | $**288025** | $**52939** | $**(28873)** | $**1110932** | $**1423023** |
| Balance, December 31, 2023 | 169986 | $271213 | $61363 | $13650 | $1611231 | $1957457 |
| Share-based compensation |  |  | 40788 |  |  | 40788 |
| Shares issued under employee share purchase plan | 24 | 827 |  |  |  | 827 |
| Shares issued pursuant to exercise of stock options | 29 | 976 | (143) |  |  | 833 |
| Shares issued or distributed pursuant to vesting of restricted share units | 394 | 10287 | (18456) |  |  | (8169) |
| Shares repurchased for cancellation (including share buyback taxes) | (4531) | (7414) |  |  | (160909) | (168323) |
| Share repurchases for settlement of non-Treasury RSUs | (410) | (656) |  |  | (13207) | (13863) |
| Change from equity-settled to cash-settled arising from change in settlement |  |  | (15396) |  |  | (15396) |
| Payout of employee portion of deferred compensation |  |  | (1333) |  |  | (1333) |
| Dividends declared |  |  | 410 |  | (69631) | (69221) |
| Transactions with shareholders of the Company recognized directly in equity | (4494) | 4020 | 5870 |  | (243747) | (233857) |
| Cash flow hedges (note 10) |  |  |  | (8329) |  | (8329) |
| Net earnings |  |  |  |  | 137073 | 137073 |
| Comprehensive income |  |  |  | (8329) | 137073 | 128744 |
| Balance, June 30, 2024 | 165492 | $275233 | $67233 | $5321 | $1504557 | $1852344 |

---

See accompanying notes to unaudited condensed interim consolidated financial statements.

 QUARTERLY REPORT - Q2 2025 40

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |

---

**GILDAN ACTIVEWEAR INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands of U.S. dollars) - unaudited**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Cash flows from (used in) operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net earnings | $**137929** | $58406 | $**222611** | $137073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization (note 8(a)) | **37593** | 36794 | **67938** | 68382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash restructuring (recoveries) costs related to property, plant and equipment (PP&E), right-of-use assets, and computer software (note 7) | **(54)** | (4940) | **2222** | (5394) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash settled share-based awards in connection with outgoing executives' termination benefits | **—** | (15396) | **—** | (15396) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) Loss on disposal of PP&E and right-of-use assets | **(92)** | 8 | **(183)** | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | **9514** | 36959 | **18374** | 43248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **2339** | 13837 | **1257** | 13015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (note 12(a)) | **584** | (11650) | **(1109)** | (12415) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in non-cash working capital balances (note 12(c)) | **382** | 26032 | **(265148)** | (115857) |
| Cash flows from operating activities | **188195** | 140050 | **45962** | 112654 |
| Cash flows from (used in) investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | **(33056)** | (35531) | **(55334)** | (77702) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible assets | **(1328)** | (745) | **(2369)** | (2545) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of assets held for sale, and other disposals of PP&E | **198** | 95 | **213** | 167 |
| Cash flows used in investing activities | **(34186)** | (36181) | **(57490)** | (80080) |
| Cash flows from (used in) financing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in amounts drawn under long-term bank credit facility | **5000** | 79000 | **80000** | 234000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of Senior unsecured notes | **—** |  | **486280** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of delayed draw term loan | **—** |  | **(300000)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of lease obligations | **(4497)** | (3002) | **(8935)** | (6792) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | **(68457)** | (69221) | **(68457)** | (69221) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of shares | **424** | 1239 | **9218** | 1584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase and cancellation of shares | **(76369)** | (112510) | **(138018)** | (169210) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share repurchases for settlement of non-Treasury RSUs | **—** |  | **(25757)** | (13863) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of tax on shares repurchased for cancellation under normal course issuer bid (NCIB) program | **—** |  | **(14910)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes paid pursuant to the settlement of non-Treasury RSUs | **(87)** | (125) | **(21285)** | (8169) |
| Cash flows used in financing activities | **(143986)** | (104619) | **(1864)** | (31671) |
| Effect of exchange rate changes on cash and cash equivalents denominated in foreign currencies | **497** | (169) | **609** | (268) |
| Increase (Decrease) in cash and cash equivalents during the period | **10520** | (919) | **(12783)** | 635 |
| Cash and cash equivalents, beginning of period | **75496** | 91196 | **98799** | 89642 |
| Cash and cash equivalents, end of period | $**86016** | $90277 | $**86016** | $90277 |
| Cash paid during the period (included in cash flows from operating activities): | Cash paid during the period (included in cash flows from operating activities): | Cash paid during the period (included in cash flows from operating activities): | Cash paid during the period (included in cash flows from operating activities): | Cash paid during the period (included in cash flows from operating activities): |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $**28218** | $17867 | $**50101** | $34432 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net of refunds | **8808** | 7373 | **13854** | 13133 |

---

Supplemental disclosure of cash flow information (note [1](#i53a91fb0ce71425181073b3b88c65722_73)2).

See accompanying notes to unaudited condensed interim consolidated financial statements.

 QUARTERLY REPORT - Q2 2025 41

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**For the periods ended June 29, 2025** 

**(Tabular amounts in thousands or thousands of U.S. dollars except per share data, unless otherwise indicated)**

**1. REPORTING ENTITY:**

Gildan Activewear Inc. (the "Company" or "Gildan") is domiciled in Canada and is incorporated under the *Canada Business Corporations Act.* Its principal business activity is the manufacture and sale of activewear, hosiery, and underwear. The Company's fiscal year ends on the Sunday closest to December 31 of each year.

The address of the Company's registered office is 600 de Maisonneuve Boulevard West, Suite 3300, Montreal, Quebec. These unaudited condensed interim consolidated financial statements are as at and for the three and six months ended June 29, 2025 and include the accounts of the Company and its subsidiaries. The Company is a publicly listed entity and its shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol GIL.

**2. BASIS OF PREPARATION:**

**(a) Statement of compliance:**

These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). These unaudited condensed interim consolidated financial statements should be read in conjunction with the Company's fiscal 2024 audited consolidated financial statements. The Company applied the same accounting policies in the preparation of these unaudited condensed interim consolidated financial statements as those disclosed in note 3 of its most recent annual consolidated financial statements.

These unaudited condensed interim consolidated financial statements were authorized for issuance by the Board of Directors of the Company on July 30, 2025.

**(b) Seasonality of the business:**

The Company's net sales are subject to seasonal variations. Net sales have historically been higher during the second and third quarters of the fiscal year.

**(c) Operating segments:**

The Company manages its business on the basis of one reportable operating segment.

 QUARTERLY REPORT - Q2 2025 42

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**3. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED:**

**IFRS 9 Financial Instruments ("IFRS 9") and IFRS 7 Financial Instruments: Disclosures ("IFRS 7")**

In May 2024, IASB issued limited amendments to IFRS 9 and IFRS 7. These amendments provide clarity on the timing of recognition and derecognition of financial assets and liabilities, the assessment of contractual cash flow characteristics, and the resulting classification and disclosure of financial assets with environmental, social, and governance-linked or other contingent features. Additionally, the amendments clarify that a financial liability is derecognized on the settlement date, with the accounting policy choice to derecognize a financial liability settled using an electronic payment system before the settlement date, provided specific conditions are met. Additional disclosures are required for financial instruments with contingent features and investments in equity instruments designated at fair value through other comprehensive income with these amendments. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt only the amendments to the classification of financial assets. The Company is currently evaluating the potential impact of these amendments on its consolidated financial statements.

**IFRS 18 Presentation and Disclosure in Financial Statements**

On April 9, 2024, the IASB issued IFRS 18 to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1 unchanged. The standard sets out requirements on presentation and disclosures in financial statements. It introduces a defined structure for the statement of income composed of required categories and subtotals. The standard also introduces specific disclosure requirements for management-defined performance measures and a reconciliation between these measures and the most similar subtotal specified in IFRS, which must be disclosed in a single note. IFRS 18 applies for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of IFRS 18 on its consolidated financial statements.

 QUARTERLY REPORT - Q2 2025 43

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**4. TRADE ACCOUNTS RECEIVABLE:**

---

| | | |
|:---|:---|:---|
| | **June 29,<br>2025** | December 29,<br>2024 |
| Trade accounts receivable | $**721420** | $553420 |
| Allowance for expected credit losses | **(13398)** | (11061) |
|  | $**708022** | $542359 |

---

As at June 29, 2025, trade accounts receivables being serviced under a receivables purchase agreement amounted to $296.9 million (December 29, 2024 - $272.1 million). The receivables purchase agreement, which allows for the sale of a maximum of $400 million of accounts receivables at any one time, expires on June 16, 2026, subject to annual extensions. The Company retains servicing responsibilities, including collection, for these trade receivables sold. The difference between the carrying amount of the receivables sold under the agreement and the cash received at the time of transfer was $3.9 million (2024 - $4.3 million) and $7.4 million (2024 - $7.7 million) for the three and six months ended June 29, 2025, respectively, and was recorded in bank and other financial charges.

The movement in the allowance for expected credit losses in respect of trade receivables was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Allowance for expected credit losses, beginning of period | $**(12768)** | $(11274) | $**(11061)** | $(11165) |
| Impairment of trade accounts receivable | **(560)** | (472) | **(2537)** | (815) |
| (Recovery) Write-off of trade accounts receivable | **(70)** | 110 | **200** | 344 |
| Allowance for expected credit losses, end of period | $**(13398)** | $(11636) | $**(13398)** | $(11636) |

---

**5. INVENTORIES:**

---

| | | |
|:---|:---|:---|
| | **June 29,<br>2025** | December 29,<br>2024 |
| Raw materials and spare parts inventories | $**189063** | $170321 |
| Work in progress | **76601** | 65399 |
| Finished goods | **949856** | 874842 |
|  | $**1215520** | $1110562 |

---

 QUARTERLY REPORT - Q2 2025 44

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**6. LONG-TERM DEBT:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Effective interest rate**<sup>(1)</sup> | **Principal amount** | **Principal amount** | **Maturity date** |
| | **Effective interest rate**<sup>(1)</sup> | **June 29,<br>2025** | December 29,<br>2024 | **Maturity date** |
| **Non-current portion of long-term debt** |  |  |  |  |
| Revolving long-term bank credit facility, interest at variable U.S. interest rate<sup>(2)(3)</sup> | **5.9%** | $**80000** | $— | **Mar 2030** |
| Senior unsecured Canadian notes, Series 1, interest at fixed rate of 4.36%, payable semi-annually | **5.5%** | **366550** | 347050 | **Nov 2029** |
| Senior unsecured Canadian notes, Series 2, interest at fixed rate of 4.71%, payable semi-annually | **5.8%** | **146620** | 138820 | **Nov 2031** |
| Senior unsecured Canadian notes, Series 3, interest at CORRA plus 1.26%, payable quarterly | **5.7%** | **109965** |  | **Mar 2028** |
| Senior unsecured Canadian notes, Series 4, interest at fixed rate of 3.630%, payable semi-annually | **5.6%** | **146620** |  | **Mar 2028** |
| Senior unsecured Canadian notes, Series 5, interest at fixed rate of 4.149%, payable semi-annually | **5.6%** | **256585** |  | **Nov 2030** |
| Term loan, interest at variable U.S. interest rate, payable monthly<sup>(2)(4)</sup> | **4.9%** | **300000** | 300000 | **Jun 2026** |
| Term loan, interest at variable U.S. interest rate, payable monthly<sup>(5)</sup> | **5.9%** | **300000** | 300000 | **Aug 2029** |
| Notes payable, interest at fixed rate of 2.91%, payable semi-annually<sup>(6)</sup> | **2.9%** | **100000** | 100000 | **Aug 2026** |
| Notes payable, interest at Adjusted SOFR plus a spread of 1.57%, payable quarterly<sup>(6)(7)</sup> | **2.9%** | **50000** | 50000 | **Aug 2026** |
|  |  | $**1856340** | $1235870 |  |
| **Current portion of long-term debt** |  |  |  |  |
| Delayed draw term loan (DDTL), interest at variable U.S. interest rate, payable monthly<sup>(2)(4)(8)</sup> | **n/a** | **—** | 300000 | **n/a** |
|  |  | $**—** | $300000 |  |
| **Long-term debt (including current portion)** |  | $**1856340** | $1535870 |  |

---

n/a = not applicable

(1)Represents the annualized effective interest rate for the six months ended June 29, 2025, including the impact of interest rate swaps and cross currency interest rate swaps, where applicable.

(2)Secured Overnight Financing Rate (SOFR) advances at adjusted Term SOFR (includes a 0% to 0.25% reference rate adjustment) plus a spread ranging from 1% to 3%.

(3)The Company's committed unsecured revolving long-term bank credit facility of $1 billion provides for an annual extension which is subject to the approval of the lenders. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the credit facility agreement and its amendments). In addition, an amount of $12.8 million (December 29, 2024 - $10.8 million) has been committed against this facility to cover various letters of credit.

(4)The unsecured term loan is non-revolving and can be prepaid in whole or in part at any time with no penalties. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments). The term loan matures on June 30, 2026.

(5)The term loan facility can be prepaid in whole or in part at any time with no penalties. The spread added to the adjusted Term SOFR is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments).

(6)The unsecured notes issued to accredited investors in the U.S. private placement market can be prepaid in whole or in part at any time, subject to the payment of a prepayment penalty as provided for in the Note Purchase Agreement.

(7)Adjusted SOFR rate is determined on the basis of floating rate notes that bear interest at a floating rate plus a spread of 1.57%.

(8)On May 16, 2024, the Company extended the term of the DDTL to May 26, 2025.The DDTL was fully repaid on March 19, 2025.

 QUARTERLY REPORT - Q2 2025 45

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**6. LONG-TERM DEBT (continued):**

On August 30, 2024, the Company entered into an unsecured five-year term loan agreement for a total principal amount of $300 million. The term loan is non-revolving and provides for a spread added to the adjusted Term SOFR which is based on the total net debt to EBITDA ratio (as defined in the term loan agreement).

On November 22, 2024, the Company issued at par, 4.362% Series 1 senior unsecured notes ("Series 1 notes") with a principal amount of $500 million in Canadian dollars ($357.1 million in U.S. dollars), which will mature on November 22, 2029. Additionally, on the same date, the Company issued at par, 4.711% Series 2 senior unsecured notes ("Series 2 notes") with a principal amount of $200 million in Canadian dollars ($142.9 million in U.S. dollars), which will mature on November 22, 2031. The notes were offered in Canada on a private placement basis.

The Series 1 notes and Series 2 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the combined principal at US$500 million and the interest at 5.49% and 5.765% respectively. Interest on these senior unsecured Canadian notes is payable semi-annually.

On March 13, 2025, the Company issued floating rate Series 3 senior unsecured notes ("Series 3 notes") with a principal amount of $150 million in Canadian dollars ($104 million in U.S. dollars), which will mature on March 13, 2028. The Series 3 floating rate notes were issued at par and bear interest at a rate equal to the daily compounded CORRA plus 1.26% annually. On the same date, the Company issued at par, 3.630% Series 4 senior unsecured notes ("Series 4 notes") with a principal amount of $200 million in Canadian dollars ($139 million in U.S. dollars), which will mature on March 13, 2028. Additionally, on the same date, the Company issued 4.149% Series 5 senior unsecured notes ("Series 5 notes") with a principal amount of $350 million in Canadian dollars ($243 million in U.S. dollars), which will mature on November 22, 2030. The notes were offered in Canada on a private placement basis.

The Series 3 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$104 million and converts the interest payment to SOFR plus 1.405%.

The Series 4 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$139 million. The Series 4 notes also have a fixed-to-floating interest rate swap to convert the fixed interest rate to SOFR plus 1.425%.

The Series 5 notes have been hedged for foreign currency fluctuations through cross currency principal and interest rate swaps, which serves to lock in the principal at US$243 million and the interest at 5.635%.

All of these hedging instruments relating to the Senior unsecured notes are for the same duration as the hedged note.

On March 19, 2025, the Company repaid its delayed draw term loan.

Under the terms of the revolving facility, term loan facilities and U.S. private notes, the Company is required to comply with certain covenants, including maintenance of financial ratios. The Company was in compliance with all financial covenants at June 29, 2025.

 QUARTERLY REPORT - Q2 2025 46

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**7. RESTRUCTURING AND ACQUISITION-RELATED COSTS (RECOVERIES):**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Employee termination and benefit costs | $**3551** | $— | $**3551** | $— |
| Exit, relocation and other costs | **4645** | 1982 | **7340** | 3228 |
| Net loss (gain) on disposal, and write-downs of property, plant and equipment, right-of-use assets and computer software related to exit activities | **(55)** | (4875) | **2221** | (5323) |
| Restructuring and acquisition-related costs (recovery) | $**8141** | $(2893) | $**13112** | $(2095) |

---

Restructuring and acquisition-related costs for the six months ended June 29, 2025 include $6.7 million of costs relating to the exit of third-party sewing contractor relationships in the south of Haiti, $3.1 million for the closure of a U.S. yarn-spinning facility, and other charges including costs relating to restructuring activities initiated in previous years. Restructuring and acquisition-related recoveries for the six months ended June 30, 2024 included $5.3 million in gains on disposals primarily relating to the sublease of a closed distribution facility in the western United States, partially offset by costs of $3.2 million mainly related to the completion of previously initiated restructuring activities.

**8. OTHER INFORMATION:**

**(a) Depreciation and amortization:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Depreciation of property, plant and equipment | $**28872** | $28906 | $**57790** | $56072 |
| Depreciation of right-of-use assets | **3829** | 3963 | **7770** | 7334 |
| Adjustment for the variation of depreciation included in inventories at the beginning and end of the period | **1734** | 647 | **(3932)** | (2024) |
| Amortization of intangible assets, excluding computer software | **1924** | 1923 | **3847** | 4257 |
| Amortization of computer software | **1234** | 1355 | **2463** | 2743 |
| Depreciation and amortization included in net earnings | $**37593** | $36794 | $**67938** | $68382 |

---

Included in property, plant and equipment as at June 29, 2025 is $46.7 million (December 29, 2024 - $57.7 million) of buildings and equipment not yet available for use in operations. Included in intangible assets as at June 29, 2025 is $6.2 million (December 29, 2024 - $3.9 million) of software not yet available for use in operations. Depreciation and amortization on these assets commence when the assets are available for use.

As at June 29, 2025, the Company has approximately $59.0 million in commitments to purchase property and equipment, mainly related to manufacturing operations.

 QUARTERLY REPORT - Q2 2025 47

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**8. OTHER INFORMATION (continued):**

**(b) Financial expenses, net:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Interest expense on financial liabilities recorded at amortized cost | $**25619** | $18053 | $**49653** | $34087 |
| Bank and other financial charges | **5650** | 5942 | **11197** | 10813 |
| Interest accretion on discounted lease obligations | **1312** | 1224 | **2692** | 2237 |
| Interest accretion on discounted provisions | **134** | 107 | **244** | 213 |
| Foreign exchange gain | **(723)** | (1054) | **(1930)** | (352) |
| Financial expenses, net | $**31992** | $24272 | $**61856** | $46998 |

---

**(c) Related party transaction:**

The Company incurred expenses for aircraft usage of $0.3 million (2024 - $0.6 million) and $0.6 million (2024 - $0.6 million) respectively, for the three and six months ended June 29, 2025, with a company controlled by the President and Chief Executive Officer of the Company. The payments made are in accordance with the terms of the agreement established and agreed to by the related parties. As at June 29, 2025, the amount in accounts payable and accrued liabilities related to the airplane usage was $0.2 million (December 29, 2024 - $0.2 million).

As at June 29, 2025, the Company has a commitment of $0.3 million under this agreement, which relates to minimum usage fees for the remainder of fiscal 2025.

Included in selling, general and administrative expenses (SG&A), for the six months ended June 30, 2024, were the following related party transactions relating to the fiscal 2024 proxy contest:

–$21.6 million of severance and other termination benefits to outgoing executives (see note 8(e)). The cash payouts in the second quarter of 2024 for the severance and termination benefits totaled $24.4 million, of which $15.3 million was for Mr. Tyra and $9.1 million was for Mr. Bajaj.

–$9.4 million in accrued expenses relating to the approved reimbursement of legal and other advisory expenses incurred by Browning West (one of the Company's shareholders which has a partner serving on the Company's Board of Directors since May 23, 2024). The approved reimbursement related to expenses incurred by Browning West relating to the proxy contest which arose following the termination of the Company's President and Chief Executive Officer, Glenn Chamandy, and his subsequent reinstatement as President and Chief Executive Officer on May 24, 2024.

–Refer to note 8(e) for compensation expenses relating to Mr. Chamandy's reinstatement as President and CEO, as well incremental costs relating to the previous Board and refreshed Board.

 QUARTERLY REPORT - Q2 2025 48

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**8. OTHER INFORMATION (continued):**

**(d) Lease obligations:** 

The Company's leases are primarily for manufacturing, sales, distribution, and administrative facilities.

The following table presents lease obligations recorded in the condensed interim consolidated statements of financial position:

---

| | | |
|:---|:---|:---|
| | **June 29,<br>2025** | December 29,<br>2024 |
| Current | $**19749** | $17749 |
| Non-current | **98511** | 99671 |
|  | $**118260** | $117420 |

---

The following table presents the future minimum lease payments under non-cancellable leases (including short-term leases) as at June 29, 2025:

---

| | |
|:---|:---|
| | **June 29,<br>2025** |
| Less than one year | $**28975** |
| One to five years | **77488** |
| More than five years | **35883** |
|  | $**142346** |

---

For the three and six months ended June 29, 2025, the total cash outflow for recognized lease obligations (including interest) was $5.8 million and $11.6 million (2024 - $4.2 million and $9.0 million) respectively, of which $4.5 million and $8.9 million (2024 - $3.0 million and $6.8 million) respectively, was included as part of cash outflows used in financing activities.

 QUARTERLY REPORT - Q2 2025 49

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**8. OTHER INFORMATION (continued):**

**(e) Costs relating to proxy contest and leadership changes and related matters:**

For the three and six months ended June 29, 2025 costs relating to proxy contest and leadership changes and related matters included in SG&A expenses amounted to $1.1 million and $2.0 million, respectively, and included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advisory fees on shareholder matters of $1.1 million and $1.7 million, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stock-based compensation relating to special retention awards, net of jobs credits, of nil and $0.2 million, respectively. At the grant date, these special retention awards had a total fair value of $8.6 million. The stock-based compensation expense relating to these awards is being recognized over the respective vesting periods, with most of the awards having vested at the end of 2024; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Incremental costs relating to the previous Board and refreshed Board of nil and $0.1 million, respectively, This charge relates to the increase in value of the deferred share units (DSU) liability.

For the three and six months ended June 30, 2024 costs relating to proxy contest and leadership changes and related matters included in SG&A expenses amounted to $57.2 million and $76.8 million, respectively, and included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advisory fees on shareholder matters of $18.0 million and $33.3 million, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Severance and other termination benefits of $21.6 million in the second quarter to outgoing executives (Mr. Tyra and Mr. Bajaj) following the conclusion of the proxy contest in May 2024 which included an expense of $12.3 million resulting from the accelerated vesting of RSU awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation expenses relating to Mr. Chamandy's termination and subsequent reinstatement as President and Chief Executive Officer of $7.8 million and $8.9 million, respectively. The expense included $1.7 million and $1.7 million, respectively, for back pay and accruals for short-term incentive plan benefits, as well as $15.9 million and $17.0 million, respectively, in stock-based compensation expense adjustments for reinstated share-based awards (for which a reversal of compensation expense of approximately $6 million was recorded in the fourth quarter of fiscal 2023), partially offset by the reversal of $9.8 million in the second quarter of 2024 in severance benefits which had been accrued in the fourth quarter of 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Incremental costs relating to the previous Board and refreshed Board of $7.4 million and $7.4 million, respectively. These charges included $4.8 million for a Directors and Officers run-off insurance policy, $0.4 million for special board meeting fee payments, and $2.2 million for the increase in value of the deferred share units (DSU) liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stock-based compensation relating to special retention awards of $1.9 million and $2.6 million, respectively. In connection with the departure of Mr. Bajaj, $2.5 million of these awards were fully paid out in cash to him during the second quarter of 2024; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advisory, legal and other expenses of $0.5 million and $3.0 million, respectively, with respect to the announced review process initiated by the previous Board following receipt of a confidential non-binding expression of interest to acquire the Company.

**(f) Government assistance:**

For the three and six months ended June 29, 2025 the Company recognized $3.8 million and $8.3 million (2024 - $4.6 million and $8.8 million), respectively, in cost of sales in the condensed interim consolidated statements of earnings and comprehensive income relating to government assistance for production costs.

During the second quarter of fiscal 2024, the Government of Barbados enacted a jobs credit, in order to foster economic activity and employment in Barbados. For the three and six months ended June 29, 2025 the Company recognized $11.6 million and $19.7 million (2024 - $17.2 million and $17.2 million), respectively, for this jobs credit, as a reduction of SG&A expenses in the condensed interim consolidated statements of earnings and comprehensive income, which was mostly applied as a reduction to income taxes payable. The retroactive impact of the jobs credit for Q1 2024 was accounted for in Q2 2024.

 QUARTERLY REPORT - Q2 2025 50

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**8. OTHER INFORMATION (continued):**

**(g) Share repurchases:** 

On June 20, 2024, Canada's Bill C-59 was enacted into law, which, among other things, introduced a 2% tax on the annual net value of share repurchases by public corporations in Canada occurring on or after January 1, 2024. The Company is subject to this tax which is based on the shares repurchased for cancellation under the Company's normal course issuer bid (NCIB) program. The tax cost for the six months ended June 29, 2025 was $2.5 million (2024 - $3.3 million) and has been recorded as a charge to retained earnings. This amount is included in accounts payable and accrued liabilities in the condensed interim consolidated statements of financial position as at June 29, 2025, as the amount is only payable in 2026.

**9. FAIR VALUE MEASUREMENT:**

**Financial instruments – carrying amounts and fair values:**

The carrying amounts and fair values of financial assets and liabilities included in the unaudited condensed interim consolidated statements of financial position are as follows:

---

| | | |
|:---|:---|:---|
| | **June 29,<br>2025** | December 29,<br>2024 |
| **Financial assets** |  |  |
| Amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**86016** | $98799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **708022** | 542359 |
| &nbsp;&nbsp;&nbsp;Financial assets included in prepaid expenses, deposits and other current assets | **83206** | 56785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term non-trade receivables included in other non-current assets | **20176** | 22321 |
| Derivative financial instruments designated as effective hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;Derivative financial assets included in prepaid expenses, deposits and other current assets | **7586** | 12108 |
| &nbsp;&nbsp;&nbsp;Derivative financial assets included in other non-current assets | **24709** |  |
| **Financial liabilities** |  |  |
| Amortized cost: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities<sup>(1)</sup> | $**480751** | $478317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt - bearing interest at variable rates | **839965** | 950000 |
| &nbsp;&nbsp;&nbsp;Long-term debt - bearing interest at fixed rates<sup>(2)</sup> | **1016375** | 585870 |
| Derivative financial instruments designated as effective hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;Derivative financial liabilities included in accounts payable and accrued liabilities | **16728** | 11756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial liabilities included in other non-current liabilities | **—** | 8602 |

---

(1) Accounts payable and accrued liabilities include $9.8 million (December 29, 2024 - $11.6 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement. Accounts payable and accrued liabilities also include balances payable of $30.9 million (December 29, 2024 - $37.8 million) resulting mainly from a one-week timing difference between the collection of sold receivables and the weekly remittance to the bank counterparty under the receivables purchase agreement that is disclosed in note 4 to these unaudited condensed interim consolidated financial statements.

(2) The fair value of the long-term debt bearing interest at fixed rates was $1,036.3 million as at June 29, 2025 (December 29, 2024 - $627.3 million).

 QUARTERLY REPORT - Q2 2025 51

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**9. FAIR VALUE MEASUREMENT (continued):**

***Short-term financial assets and liabilities***

The Company has determined that the fair value of its short-term financial assets and liabilities approximates their respective carrying amounts as at the reporting dates due to the short-term maturities of these instruments, as they bear variable interest-rates, or because the terms and conditions are comparable to current market terms and conditions for similar items.

***Non-current assets and long-term debt bearing interest at variable rates***

The fair values of the long-term non-trade receivables included in other non-current assets and the Company's long-term debt bearing interest at variable rates also approximate their respective carrying amounts because the interest rates applied to measure their carrying amounts approximate current market interest rates.

***Long-term debt bearing interest at fixed rates***

The fair value of the long-term debt bearing interest at fixed rates is determined using the discounted future cash flows method and at discount rates based on yield to maturities for similar issuances. The fair value of the long-term debt bearing interest at fixed rates was measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of the long-term debt bearing interest at fixed rates, the Company takes into account its own credit risk and the credit risk of the counterparties.

***Derivatives***

Derivative financial instruments are designated as effective hedging instruments and consist of foreign exchange and commodity forward, option, and swap contracts, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the term loan and unsecured notes. The fair value of the forward contracts is measured using a generally accepted valuation technique which is the discounted value of the difference between the contract's value at maturity based on the rate set out in the contract and the contract's value at maturity based on the rate that the counterparty would use if it were to renegotiate the same contract terms at the measurement date under current conditions. The fair value of the option contracts is measured using option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs, including volatility estimates and option adjusted credit spreads. The fair value of the interest rate swaps is determined based on market data, by measuring the difference between the fixed contracted rate and the forward curve for the applicable floating interest rates.

The Company has also entered into derivative transactions to hedge its exposure to foreign currency exchange risk related to its series 1,2,3 and 5 notes liability and interest expense denominated in Canadian dollars. These cross-currency swaps were designated at inception and are accounted for as a cash flow hedges, and to the extent that the hedges are effective, unrealized gains and losses are included in other comprehensive income until reclassified to the statement of income as the hedged interest payments and principal repayments impact net income.

The Company also entered into derivative transactions to hedge its exposure to foreign currency exchange risk related to its Series 4 notes liability and fixed interest expense denominated in Canadian dollars. The cross-currency swap has been designated at inception and is accounted for as a fair value hedge of the changes in fair value arising from the changes in the risk-free interest rate and foreign currency exchange rate. The carrying amount of the Series 4 notes liability is adjusted for the fair value change attributable to the hedged risk with a corresponding entry in profit or loss. The fair value changes on the cross-currency swap are recognized in profit or loss within the same line item.

Derivative financial instruments were measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of derivative financial instruments the Company takes into account its own credit risk and the credit risk of the counterparties.

 QUARTERLY REPORT - Q2 2025 52

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**10. OTHER COMPREHENSIVE INCOME (LOSS) ("OCI"):**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Net gain (loss) on derivatives designated as cash flow hedges: | Net gain (loss) on derivatives designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency risk | $**14308** | $1519 | $**13553** | $1517 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity price risk | **(4022)** | (9398) | **(8171)** | (2781) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | **195** | 1055 | **117** | 3967 |
| Income taxes | **889** | (15) | **896** | (15) |
| Amounts reclassified from OCI to inventory, related to commodity price risk | **4215** | (3852) | **6242** | (7073) |
| Amounts reclassified from OCI to net earnings, related to foreign currency risk, commodity price risk, and interest rate risk, and included in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | **1082** | (114) | **(475)** | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales | **—** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | **177** | 100 | **842** | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial expenses, net | **(35379)** | (2179) | **(42068)** | (3947) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **142** | 2 | **218** | (6) |
| Other comprehensive loss | $**(18393)** | $(12882) | $**(28846)** | $(8329) |

---

As at June 29, 2025, accumulated other comprehensive loss of $28.9 million consisted of net deferred loss on cross currency interest rate swaps of $13.1 million, net deferred losses on forward foreign exchange contracts of $5.3 million, net deferred losses on commodity forward, option, and swap contracts of $14.5 million partially offset by net deferred gains on interest rate swap contracts of $2.9 million and net deferred tax recovery of $1.1 million. Approximately $20.4 million of net losses presented in accumulated other comprehensive income are expected to be reclassified to inventory or net earnings within the next twelve months.

 QUARTERLY REPORT - Q2 2025 53

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**11. EARNINGS PER SHARE:**

Reconciliation between basic and diluted earnings per share is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Net earnings - basic and diluted | $**137929** | $58406 | $**222611** | $137073 |
| Basic earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic weighted average number of common shares outstanding | **150762** | 168005 | **151318** | 168437 |
| Basic earnings per share | $**0.91** | $0.35 | $**1.47** | $0.81 |
| Diluted earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic weighted average number of common shares outstanding | **150762** | 168005 | **151318** | 168437 |
| &nbsp;&nbsp;&nbsp;Plus dilutive impact of stock options, Treasury RSUs and common shares held in trust | **53** | 134 | **81** | 122 |
| Diluted weighted average number of common shares outstanding | **150815** | 168139 | **151399** | 168559 |
| Diluted earnings per share | $**0.91** | $0.35 | $**1.47** | $0.81 |

---

Excluded from the above calculation for the three and six months ended June 29, 2025 are 1.7 million and 1.7 million treasury RSUs (2024 - nil and nil), respectively, which are considered contingently issuable shares for which performance conditions have not been met as at June 29, 2025.

**12. SUPPLEMENTAL CASH FLOW DISCLOSURE:**

**(a) Adjustments to reconcile net earnings to cash flows from (used in) operating activities - other items:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Unrealized net (gain) loss on foreign exchange and financial derivatives | $**(49)** | $(75) | $**1721** | $(504) |
| Timing differences between settlement of financial derivatives and transfer of deferred gains or losses in accumulated OCI to inventory and net earnings | **(6394)** | (6607) | **(5711)** | (5762) |
| Other non-current assets | **7277** | (5570) | **4728** | (4800) |
| Other non-current liabilities | **(250)** | 602 | **(1847)** | (1349) |
|  | $**584** | $(11650) | $**(1109)** | $(12415) |

---

 QUARTERLY REPORT - Q2 2025 54

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**12. SUPPLEMENTAL CASH FLOW DISCLOSURE (continued):**

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Dividends payable | $**(34625)** | $(34546) | $**—** | $— |
| Shares repurchased for cancellation included in accounts payable and accrued liabilities | **573** | 5681 | **533** | (4270) |
| Net additions to property, plant and equipment and intangible assets included in accounts payable and accrued liabilities | **82** | 1597 | **346** | 1590 |
| Proceeds on disposal of property, plant and equipment and computer software included in other current assets | **—** | (53) | **—** | (106) |
| Additions to right-of-use assets included in lease obligations | **8739** | 16318 | **9030** | 16525 |
| Amounts payable relating to taxes on share repurchases included in accounts payable and accrued liabilities | **1550** | 3383 | **2476** | 3383 |
| 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 | **10** | 143 | **16414** | 10430 |
| Reclass from accounts payable and accrued liabilities to contributed surplus pursuant to change in settlement of restricted share units | **—** | (13504) | **—** |  |
| Amounts payable relating to non-Treasury RSUs to be settled in cash included in accounts payable and accrued liabilities | **—** | 1295 | **—** | 2384 |
| Deferred compensation credited to contributed surplus | **(476)** | 837 | **(1540)** | 1333 |
| Non-cash ascribed value credited to contributed surplus for dividends attributed to restricted share units | **—** | 410 | **884** | 410 |

---

**(c) Changes in working capital balances:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Trade accounts receivable | $**(41709)** | $(87712) | $**(160270)** | $(188350) |
| Income taxes | **1833** | 20340 | **4853** | 19121 |
| Inventories | **15616** | 26140 | **(101026)** | (18965) |
| Prepaid expenses, deposits and other current assets | **(22075)** | 18852 | **(23202)** | 17397 |
| Accounts payable and accrued liabilities | **46717** | 48412 | **14497** | 54940 |
|  | $**382** | $26032 | $**(265148)** | $(115857) |

---

 QUARTERLY REPORT - Q2 2025 55

------

---

| | |
|:---|:---|
| ![image3a.jpg](image3a.jpg) | NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |

---

**13. CONTINGENT LIABILITIES:**

**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.

The Company records a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. The Company reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events, pertaining to a particular case.

**14. DISAGGREGATION OF REVENUE:**

Net sales by major product group were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| Activewear | $**822200** | $736549 | $**1469534** | $1328635 |
| Hosiery and underwear | **96304** | 125619 | **160642** | 229329 |
|  | $**918504** | $862168 | $**1630176** | $1557964 |

---

Net sales were derived from customers located in the following geographic areas:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
| | **June 29,<br>2025** | June 30,<br>2024 | **June 29,<br>2025** | June 30,<br>2024 |
| United States | $**825567** | $763725 | $**1458128** | $1381710 |
| Canada | **32032** | 27501 | **59966** | 52827 |
| International | **60905** | 70942 | **112082** | 123427 |
|  | $**918504** | $862168 | $**1630176** | $1557964 |

---

 QUARTERLY REPORT - Q2 2025 56

## Exhibit 99.3

**FORM 52-109F2**

**CERTIFICATION OF INTERIM FILINGS**

**FULL CERTIFICATE**

I, Glenn J. Chamandy, President and Chief Executive Officer of Gildan Activewear Inc., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Gildan Activewear Inc.** (the "issuer") for the interim period ended **June 29, 2025**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp;information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the framework set forth in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 ***ICFR - material weakness relating to design:*** N/A

5.3 ***Limitation on scope of design:*** N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on **March 31, 2025** and ended on **June 29, 2025** that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: **July 31, 2025**

*<u>(s) Glenn J. Chamandy</u>&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Glenn J. Chamandy

President and Chief Executive Officer

## Exhibit 99.4

**FORM 52-109F2**

**CERTIFICATION OF INTERIM FILINGS**

**FULL CERTIFICATE**

I, Luca Barile, Executive Vice-President, Chief Financial Officer of Gildan Activewear Inc., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Gildan Activewear Inc.** (the "issuer") for the interim period ended **June 29, 2025**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp;information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the framework set forth in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 ***ICFR - material weakness relating to design:*** N/A

5.3 ***Limitation on scope of design:*** N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on **March 31, 2025** and ended on **June 29, 2025** that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: **July 31, 2025**

*<u>(s) Luca Barile</u>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Luca Barile

Executive Vice-President, Chief Financial Officer

<br>