ISS Recommends Gildan Activewear Shareholders Vote the GOLD Proxy Card “FOR” ALL EIGHT of Browning West’s Director Candidates, Including Former CEO Glenn Chamandy

Browning West, LP (together with its affiliates, “Browning West” or “we”), which is a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “Company”) and beneficially owns approximately 5.0% of the Company’s outstanding shares, today announced that Institutional Shareholder Services Inc. (“ISS”), a leading independent proxy advisory firm, has recommended that Gildan shareholders vote to elect all eight of Browning West’s highly qualified director candidates on the GOLD Proxy Card at the upcoming Annual Meeting of Shareholders (the “Annual Meeting”) on May 28, 2024. Notably, ISS recommended shareholders WITHHOLD support for all 10 of Gildan’s nominees: Timothy Hodgson, Lewis L. Bird, III, Dhaval Buch, Marc Caira, Jane Craighead, Sharon Driscoll, Lynn Loewen, Anne Martin-Vachon, current CEO Vince Tyra, and Les Viner.

Usman S. Nabi and Peter M. Lee of Browning West commented:

“We are pleased ISS has recommended shareholders elect our entire slate of director candidates, including Gildan co-founder and proven value creator Glenn Chamandy. The report from ISS is a resounding indictment of the incumbent Board, including directors new and old, which threw Gildan into chaos by terminating Mr. Chamandy late last year. Electing our entire slate of director candidates is the only way shareholders can ensure that Mr. Chamandy is reinstated and supported by qualified directors with relevant industry experience, track records of value creation, and best-in-class governance experience. This is also the only way that our slate’s superior operating plan can be implemented to deliver enduring value for all stakeholders.”

In its full report, ISS affirmed Browning West’s case for change and agreed with Browning West’s concerns regarding the Board’s decision to terminate Mr. Chamandy:¹

• “After considering the circumstances leading up to and since Chamandy's termination, the proposed operating plan, Chamandy's strong record and proven ability to execute the plan, the experience of the dissident slate, and the belief the dissident slate will better manage succession planning compared to the legacy board, the case to reverse the change at CEO appears compelling.”

• “Chamandy's track record over several decades appears far less complicated than the rationale to push him out. It is also clear the board arrived at a choice that did not incorporate the views of a sizable contingent of shareholders which elected them, a sign that priorities may have been misaligned.”

• “A review of Gildan's operational performance, shareholder returns, operating plan, and the circumstances surrounding the CEO change raises significant concerns regarding the legacy board's decision to replace Chamandy with new CEO Vincent Tyra.”

• “The subsequent decision by a majority of these directors to resign and appoint their own replacements – a new slate that has reaffirmed the legacy board's decisions and has unambiguously thrown its support behind Tyra – only underscores these concerns.”

• “The cardinal issue is that GIL's performance was better than the peer median for the one-, three-, five-, and ten-year periods ending on the date Chamandy was terminated, and the justification provided for his removal is weak and inconsistent.”

• “At the same time, Mr. Tyra does not present a recent track record as an operator in the industry and Mr. Tyra's operating performance at Broder fails to establish him as a clearly superior option.”

• “[…] it is puzzling the legacy board would remain so inflexible to the requests of the company's successful co-founder and CEO.”

• “It is challenging to conclude Chamandy's removal boiled down to performance, leadership qualities, or vision.”

ISS also noted the following with respect to Browning West’s nominees and strategy: