March 2018 – Gildan Activewear Inc. (GIL: TSX and NYSE) finished the year strong, with consolidated net sales in the fourth quarter of 2017 of $653.7 million (all figures U.S.) increasing 11.2% compared to the corresponding quarter in 2016, and reflected a sales increase of 27.6% in the Printwear segment, including the impact of the acquisition of American Apparel, partly offset by a decline of 9.2% in Branded Apparel.

For the year ended December 31, 2017, sales totalled $2.75 billion, up 6.4% compared to last year and within Gildan’s previous sales guidance.

Segmented Operating Results

The Printwear business delivered strong double-digit sales growth in the fourth quarter of 2017 which contributed to a 10.4% increase in Printwear sales for the full year of $1,822.0 million. This increase exceeded Gildan’s previous guidance which called for sales growth in the high-single-digit range. Printwear sales in the fourth quarter of 2017 were $415.6 million, up 27.6% from $325.8 million in the fourth quarter of 2016.

Net sales for the Branded Apparel segment in the quarter were $238.1 million, down 9.2% from $262.1 million in the fourth quarter of 2016. For the full year, Branded Apparel net sales of $928.8 million were below Gildan’s projection of low single-digit growth and slightly down from $934.0 million in 2016. This was mainly due to lower sock sales and the impact from the planned exit of private label programs. These factors more than offset the benefit of higher sales of underwear and the incremental sales contribution from the Peds acquisition which was completed in the third quarter of 2016.