T-shirt maker Gildan plunges on short seller’s revenue claim (opens original article in a new tab)

Gildan's stock dropped 20% following a short seller's claim that the company inflated revenue through excessive distribution channel sales, while Gildan maintained its financial guidance.

• Shares of Gildan Activewear Inc. fell 20% after short seller Jehoshaphat Research accused the company of inflating revenue through 'channel stuffing'
• Jehoshaphat alleged that Gildan boosted short-term growth by selling excess products into distribution channels, potentially cannibalizing future demand
• Gildan reiterated its fiscal 2026 guidance and stated confidence in its financial disclosures
• UBS analysts viewed the stock decline as a buying opportunity, believing Gildan would meet its 2026 revenue targets