Gildan CEO Glenn Chamandy

Gildan Activewear has reported that its recent leadership battle and proxy contest cost the company a staggering $76.8 million, significantly impacting its earnings. The turmoil culminated in May with the reinstatement of CEO Glenn Chamandy, following a struggle that saw the previous board resign due to lack of shareholder support. The financial toll included $33 million in legal and advisory fees, as well as severance costs, which contributed to a 62.4% drop in net income for the second quarter compared to the previous year. Despite these setbacks, Gildan's sales rose 2.6% to $862.2 million in the second quarter, with the company reaffirming its competitive position. Chamandy criticized the proxy fight as an 'abusive' waste of resources that could have been avoided with better communication. Moving forward, Gildan aims to focus on its growth potential in the activewear market as it heads into its 40th anniversary.