Gildan Activewear investors lost more than 18% of their holdings after Jehoshaphat Research published a report alleging the Company's reported sales were inflated by channel-stuffing practices, with distributors allegedly carrying approximately $510 million in excess inventory.
On April 30, 2026, Gildan reported what it called "record Q1 sales from continuing operations of nearly $1.2 billion, which were up 64% versus last year." The Company's Q1 2026 press release framed an inventory reduction as "proactive." Six weeks later, Jehoshaphat Research, disclosing a short position, alleged that revenue growth was driven not by genuine end-market demand but by channel-stuffing, and that organic growth had actually been negative for years.
The Company's same-day response, delivered by SVP IR & Communications Jessy Hayem, reaffirmed FY-2026 guidance and asserted "confidence in the accuracy and completeness of our disclosures." CEO Glenn Chamandy and CFO Luca Barile had signed certifications in both the FY2025 40-F filed February 26, 2026, and the Q1 2026 6-K filed April 30, 2026, attesting that those filings contained no untrue statements of material fact and did not omit material facts necessary to make the statements not misleading.
To receive more information, please fill out the form.
