Gildan Announces the Publication of its 2025 Sustainability Report Highlighting Continued Progress Towards Key Social and Environmental Targets Superscript 1

Sustainability Report Highlights

• Publication: Release of 22nd Sustainability Report for the 2025 reporting period.
• Targets Met: Achieved 100% sustainable cotton sourcing and a 25% reduction in water intensity vs. 2018 baseline.
• Recycled Materials: Increased use to 25.2% of total materials used.
• Certifications: Nine facilities attained ISO 45001 certification; included in Dow Jones Best-in-Class Index for the 13th consecutive year.
• Integration Context: CEO Glenn Chamandy noted sustainability efforts will scale with HanesBrands integration.

News Impact Analysis

• Routine Nature: The sustainability report is an expected annual disclosure and does not contain new financial guidance or strategic pivots. It confirms existing "Next Generation Sustainability" strategy progress rather than introducing new catalysts.
• ESG Sentiment: Positive for institutional investors focused on ESG criteria, reinforcing the company's long-term operational resilience and risk management regarding environmental targets.
• Financial Context: The news must be weighed against Q1 2026 earnings (April 30) which showed an EPS miss despite revenue growth due to integration costs ($106M inventory step-up charge).
• Debt Overhang: While the sustainability report is positive, the underlying capital structure remains stressed with leverage at 3.3x against a target of 1.5-2.5x. This limits immediate share buyback capacity (NCIB paused) and constrains financial flexibility.

Business Model

• Core Operations: Vertically integrated manufacturer of branded and private label activewear and innerwear.
• Flagship Project: Integration of HanesBrands Inc. to create a global apparel leader with expanded brand portfolio (Hanes, Champion, Comfort Colors).
• Geographic Footprint: Manufacturing in Bangladesh, Honduras, Nicaragua, El Salvador, Vietnam, China, and Turkey; sales across North America, Europe, Asia Pacific, and Latin America.