(Bloomberg) -- Gildan Activewear Inc.’s rough battle ahead of a shareholder vote against activist investor Browning West LP is already paying off for one group of people: its advisers.

The apparel-maker spent $15.4 million in “advisory, legal and other expenses” partly relating to “the ongoing proxy contest and shareholder matters” in the first quarter, Gildan said in its earnings statement for the first quarter. The firm also recorded $2.5 million in costs tied to its potential sale process initiated in March.

Such costs cut into earnings of the Montreal-based T-shirt maker, which owns the American Apparel brand and supplies Walmart Inc. and Nike Inc. Gildan earlier Wednesday reported operating income of $105.1 million for the first quarter, down 18% from the same period a year ago.

Gildan earned 59 cents a share on an adjusted basis, higher than the 52 cents expected by analysts. But the results were slightly below consensus on earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg. The numbers “reflect mixed top-line trends but continued discipline on margins and costs,” CIBC Capital Markets analyst Mark Petrie said in a report. 

The shares tumbled more than 7% in Toronto before paring losses to trade down 3.5% as of 12:55 p.m. 

Read More: Ex-Goldman Executive Rips ‘Drama-Seekers’ in Gildan Battle

Browning West — which is clashing with Gildan in an attempt to reinstall former Chief Executive Officer Glenn Chamandy and overhaul the firm’s board and strategy — lambasted Gildan this week for an “absurd level” of spending, alleging the company had “hired at least three law firms, three investment banks, a public relations firm, a proxy solicitor and a private investigator.”

Gildan didn’t respond to a request for comment outside of regular business hours.

(Updates with analyst comment and share price movement, beginning in the fourth paragraph.)

©2024 Bloomberg L.P.