Gildan Activewear Inc. reported net earnings of $2.9 million, or 10 cents per diluted share, for first fiscal quarter ended January 4, 2004, down respectively 21.6% and 23.1% compared with $3.7 million or 13 cents per diluted share in the first quarter of fiscal 2003.

Consensus analyst expectations for the quarter were in the range of 8 cents to 9 cents per diluted share. The Company's results for the quarter reflect increases in cost of sales and depreciation expense as a result of the upward revaluation of opening inventories and fixed assets required in order to give effect to the change to U.S. functional currency.

Net earnings for the first quarter of fiscal 2004 were $5.5 million or 18 cents per diluted share before reflecting the accounting treatment of these adjustments resulting from the change to U.S. functional currency, up respectively 48.6% and 38.5% from the first quarter of last year.

Compared to last year, the higher first quarter results reflected further
manufacturing efficiencies and increased unit sales, including the timing
impact of distributors building inventory in anticipation of a January price
increase, as well as more favourable product-mix. These factors were partially
offset by lower selling prices, combined with higher cotton costs, increased
selling, general and administration expenses and higher depreciation as a
result of the Company's recent major capital investment projects.

Sales in the quarter were U.S. $78.0 million, up 20.0% from U.S.
$65.0 million in the first quarter of fiscal 2003. The higher sales were due
to a 21.9% increase in unit shipments and a higher valued product-mix,
partially offset by lower selling prices. The higher unit sales reflected
12.3% growth in overall industry shipments of T-shirts in the U.S. wholesale
distributor market, the impact of increased shipments into the channel in
anticipation of the price increase, and continuing market share penetration in
sport shirts and fleece achieved by Gildan compared with the first quarter of
last year.

Gildan maintained its market leadership position in the overall T-shirt
category, with a share of 30.5% in the first quarter of fiscal 2004, compared
with 31.4% in the corresponding quarter of last year. During the first
quarter, the Company focused on higher-valued product-lines within the T-shirt
category, and decided not to fully participate in highly discounted white T-shirt promotions.

Although overall industry shipments in the sport shirt segment through
the U.S. distributor channel declined by 7.6%, Gildan continued to achieve
significant penetration in this segment where its unit shipments grew by 27.5%
compared with the first quarter of last year and its market share increased to
20.4%, versus 14.7% a year ago. Gildan's share in the fleece category also
increased in the first quarter to 13.9%, compared with 10.3% a year ago, as
the Company expanded its offering of fleece products. Industry demand in this
segment increased by 1.9% versus the first quarter of last year.

All U.S. market and market share data is based on the S.T.A.R.S. Report
produced by ACNielsen Market Decisions.

Gross margins were 27.1% in the first quarter, compared with 29.4% in the
first quarter of fiscal 2003. Before the impact of the adjustments resulting
from the change to U.S. functional currency, gross margins in the first
quarter of fiscal 2004 were 29.8%. Gross margins were positively impacted by
the Company's recent capital investments, in particular the significantly
higher proportion of overall production from the new low-cost integrated
textile manufacturing facility at Rio Nance, Honduras. The resulting
reductions in manufacturing costs, together with the impact of more favourable
product-mix, were offset by lower selling prices, as well as higher cotton
costs and the impact of the stronger Canadian dollar.

The Company is continuing to project a diluted EPS range of U.S. $2.25 –
$2.30 for fiscal 2004, up 25.7% – 28.5% from fiscal 2003, before taking
account of the estimated U.S. $0.16 per diluted share impact as a result of
revaluing opening inventories and fixed assets. After reflecting the
adjustments resulting from the transition to U.S. functional currency, the
Company's EPS forecast for fiscal 2004 is U.S. $2.10 – $2.15, up 17.3% – 20.1%
from fiscal 2003.

These full year projections assume a 15% increase in unit sales volumes
combined with a slight increase in selling prices in fiscal 2004 over fiscal
2003, to reflect partial pass-through of significantly higher cotton costs.
Although there is currently some promotional activity in February following
the implementation of the January 2004 selling price increase, the Company
expects that upward pressure on selling prices will continue as manufacturers
consume inventories which include higher-cost cotton.

In the first quarter, the Company used $35.8 million of cash, defined as
cash flows from operating activities less cash used in investing activities,
due to a U.S. $35.7 million use of cash for the planned seasonal build-up of
inventories. The Company used U.S. $16.1 million in the quarter for capital
expenditures, primarily to implement its continuing offshore capacity
expansion plans and its investment in a 50%/50% joint venture to acquire a
yarn spinning facility. The Company ended the quarter with surplus cash
reserves of U.S. $37.5 million.

The Company expects to invest approximately U.S. $60 million in capital
expenditures for the full fiscal year, and to generate approximately U.S. $5 –
$10 million of free cash flow, defined as cash flow from operating activities
less cash flow from investing activities. The Company intends to use U.S.
$17.5 million of its surplus cash to meet the first scheduled installment of
its U.S. senior note repayment on June 10, 2004.

As of January 31, 2004, there were 23,453,443 Class A subordinate shares
and 6,094,000 Class B multiple voting shares issued and outstanding along with
811,985 options outstanding.

                           Gildan Activewear Inc.
                     Consolidated Statements of Earnings
            (In thousands of U.S. dollars, except per share data)

                                                         Three months ended

                                                      January 4, December 29,
                                                           2004         2002
                                                    ------------ ------------
                                                     (unaudited)  (unaudited)

    Sales                                             $  77,959    $  65,000
    Cost of sales                                        56,859       45,915

    Gross profit                                         21,100       19,085

    Selling, general and administrative expenses         11,397       10,084

    Earnings before interest, income taxes,
     depreciation and amortization (EBITDA)               9,703        9,001

    Depreciation and amortization                         4,932        3,496
    Interest expense                                      1,589        1,445

    Earnings before income taxes                          3,182        4,060

    Income taxes                                            310          369

    Net earnings                                      $   2,872    $   3,691

    Basic EPS                                         $    0.10    $    0.13

    Diluted EPS                                       $    0.10    $    0.13