Gildan Activewear Shares Plunge Amid Inventory Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: PRnewswire
- Inventory Allegations: Gildan Activewear faces allegations of approximately $510 million in excess inventory in its distributor channel, contradicting executive statements over the past three years, resulting in an 18.77% drop in share price in a single day.
- Inconsistent Executive Statements: CEO Glenn Chamandy claimed during Q1 and Q3 2025 earnings calls that inventory was healthy and showed no signs of destocking, yet the short-seller's report reveals the opposite, raising investor concerns about the company's transparency.
- Financial Performance vs. Market Reaction: Despite reporting nearly $1.2 billion in record net sales for Q1 2026, the market's reaction to the inventory issues has significantly eroded investor confidence, indicating worries about the company's financial health.
- Legal Investigation Initiated: Levi & Korsinsky LLP is investigating potential securities law violations by Gildan, encouraging affected investors to submit their information, which could expose the company to legal liabilities and further impact its stock price.
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Analyst Views on GIL
Wall Street analysts forecast GIL stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 50.340
Low
63.00
Averages
72.87
High
110.00
Current: 50.340
Low
63.00
Averages
72.87
High
110.00
About GIL
Gildan Activewear Inc. is a manufacturer of everyday basic apparel. Its product offering includes activewear, underwear and socks, sold to a broad range of customers, including wholesale distributors, screenprinters, or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms and to global lifestyle brand companies. The Company markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan, Hanes, Comfort Colors, American Apparel, ALLPRO, GOLDTOE, Peds, Bali, Playtex, Maidenform, Bonds, as well as Champion which is under an exclusive licensing agreement for the printwear channel in the United States and Canada. It owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Bangladesh.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gildan Reaffirms Fiscal 2026 Guidance Amid Short Seller Report
- Response to Short Seller Report: Gildan Activewear Inc. acknowledges the short seller report published on June 16, 2026, and reaffirms that its current disclosures provide accurate and comprehensive information, ensuring investors have a clear understanding of the company's financials and governance practices.
- Fiscal Guidance Reaffirmation: The company reiterates its fiscal 2026 guidance as communicated in its April 30, 2026 press release, demonstrating confidence in future performance despite prevailing market uncertainties.
- Caution on Forward-Looking Statements: Gildan warns investors that certain statements constitute forward-looking information, which may be subject to risks and uncertainties, indicating that actual results could differ materially from expectations, thus advising caution to investors.
- Commitment to Sustainability: Gildan integrates industry-leading labor, environmental, and governance practices into its operations and supply chain, showcasing the company's commitment to sustainability, which supports its long-term business strategy.
See More
Gildan Activewear Shares Plunge Amid $510 Million Inventory Allegations
- Inventory Issues Uncovered: Jehoshaphat Research's report alleges Gildan Activewear has approximately $510 million in excess channel inventory, leading to an 18.77% drop in stock price in a single day, significantly impacting investor confidence and triggering legal investigations.
- Contradictory Executive Statements: Company executives have repeatedly claimed over the past three years that channel inventory is 'healthy and balanced,' yet the short-seller's allegations directly contradict these statements, potentially leading to a credibility crisis and legal liabilities for the company.
- Financial Performance Impacted: Although Gildan reported record first-quarter net sales of nearly $1.2 billion in 2026, the revelation of inventory issues may adversely affect future sales expectations and investor trust.
- Legal Investigation Initiated: Levi & Korsinsky law firm has begun investigating potential securities law violations by Gildan, encouraging affected investors to submit their information for legal recourse, highlighting the market's heightened concern over the company's transparency.
See More
Gildan Activewear Shares Plunge Amid Inventory Allegations
- Inventory Allegations: Gildan Activewear faces allegations of approximately $510 million in excess inventory in its distributor channel, contradicting executive statements over the past three years, resulting in an 18.77% drop in share price in a single day.
- Inconsistent Executive Statements: CEO Glenn Chamandy claimed during Q1 and Q3 2025 earnings calls that inventory was healthy and showed no signs of destocking, yet the short-seller's report reveals the opposite, raising investor concerns about the company's transparency.
- Financial Performance vs. Market Reaction: Despite reporting nearly $1.2 billion in record net sales for Q1 2026, the market's reaction to the inventory issues has significantly eroded investor confidence, indicating worries about the company's financial health.
- Legal Investigation Initiated: Levi & Korsinsky LLP is investigating potential securities law violations by Gildan, encouraging affected investors to submit their information, which could expose the company to legal liabilities and further impact its stock price.
See More
Gildan Activewear Inc. Under Investigation for Securities Violations
- Investigation Launched: The Law Offices of Howard G. Smith have announced an investigation into Gildan Activewear Inc. (NYSE:GIL) regarding potential violations of federal securities laws, indicating significant legal risks that could undermine investor confidence.
- Financial Manipulation Allegations: A report by Jehoshaphat Research alleges that Gildan has been “stuffing the channel” to inflate revenues, which could cannibalize future demand and negatively impact the company's long-term growth trajectory.
- Stock Price Plunge: Following the announcement of the investigation, Gildan's stock price fell by $11.62, or 18.8%, closing at $50.35 per share on June 16, 2026, resulting in direct losses for investors and reflecting market concerns over the company's financial health.
- Investor Rights at Risk: The law firm is urging affected investors to come forward to pursue claims for recovery, highlighting the potential for ongoing legal challenges to further impact the company's market performance and investor trust.
See More
Gildan Activewear Shares Plunge 18.77% Amid Short Seller Report
- Significant Stock Drop: Gildan Activewear shares plummeted 18.77% on Tuesday, closing at $50.34, primarily due to concerns raised by a short seller report regarding the company's sales practices and growth trends, indicating a significant decline in market confidence about its future performance.
- Inventory Overhang Issue: The Jehoshaphat Research report alleged that Gildan shipped excess inventory to distributors beyond actual demand, creating an estimated $500 million inventory overhang, which not only impacts the company's cash flow but may also lead to future sales pressure.
- Negative Organic Growth: The report claimed that despite reported revenue growth, Gildan has experienced negative organic growth for years, raising investor concerns about the company's long-term growth potential, which could affect its market valuation.
- Financial Guidance Reaffirmed: Despite the pressure, Gildan reaffirmed its fiscal 2026 guidance, forecasting revenue between $6.0 billion and $6.2 billion and adjusted earnings per share of $4.20 to $4.40, demonstrating the company's confidence in future growth despite the negative market reaction.
See More
Block & Leviton Investigates Gildan Activewear for Securities Violations
- Stock Price Plunge: Gildan Activewear's shares fell over 20% on June 16, 2026, primarily due to a Jehoshaphat Research report alleging 'channel stuffing', resulting in an estimated $500 million product overhang, which directly impacts investor confidence and market performance.
- Negative Growth Allegations: The report further claims that despite reporting revenue growth, Gildan has experienced negative organic growth for years, creating inconsistencies that may attract regulatory scrutiny and affect future financing capabilities.
- Legal Investigation Initiated: Block & Leviton is investigating whether Gildan violated securities laws and may file a lawsuit on behalf of investors seeking to recover losses, indicating potential legal risks and financial liabilities for the company.
- Investor Action Recommendation: Investors are encouraged to contact Block & Leviton to learn how to recover losses, which not only provides legal support for affected shareholders but may also influence the company's future shareholder structure and market trust.
See More
Gildan Reaffirms Fiscal 2026 Guidance Amid Short Seller Report
- Response to Short Seller Report: Gildan Activewear Inc. acknowledges the short seller report published on June 16, 2026, and reaffirms that its current disclosures provide accurate and comprehensive information, ensuring investors have a clear understanding of the company's financials and governance practices.
- Fiscal Guidance Reaffirmation: The company reiterates its fiscal 2026 guidance as communicated in its April 30, 2026 press release, demonstrating confidence in future performance despite prevailing market uncertainties.
- Caution on Forward-Looking Statements: Gildan warns investors that certain statements constitute forward-looking information, which may be subject to risks and uncertainties, indicating that actual results could differ materially from expectations, thus advising caution to investors.
- Commitment to Sustainability: Gildan integrates industry-leading labor, environmental, and governance practices into its operations and supply chain, showcasing the company's commitment to sustainability, which supports its long-term business strategy.
See More
Gildan Activewear Shares Plunge Amid $510 Million Inventory Allegations
- Inventory Issues Uncovered: Jehoshaphat Research's report alleges Gildan Activewear has approximately $510 million in excess channel inventory, leading to an 18.77% drop in stock price in a single day, significantly impacting investor confidence and triggering legal investigations.
- Contradictory Executive Statements: Company executives have repeatedly claimed over the past three years that channel inventory is 'healthy and balanced,' yet the short-seller's allegations directly contradict these statements, potentially leading to a credibility crisis and legal liabilities for the company.
- Financial Performance Impacted: Although Gildan reported record first-quarter net sales of nearly $1.2 billion in 2026, the revelation of inventory issues may adversely affect future sales expectations and investor trust.
- Legal Investigation Initiated: Levi & Korsinsky law firm has begun investigating potential securities law violations by Gildan, encouraging affected investors to submit their information for legal recourse, highlighting the market's heightened concern over the company's transparency.
See More
Gildan Activewear Shares Plunge Amid Inventory Allegations
- Inventory Allegations: Gildan Activewear faces allegations of approximately $510 million in excess inventory in its distributor channel, contradicting executive statements over the past three years, resulting in an 18.77% drop in share price in a single day.
- Inconsistent Executive Statements: CEO Glenn Chamandy claimed during Q1 and Q3 2025 earnings calls that inventory was healthy and showed no signs of destocking, yet the short-seller's report reveals the opposite, raising investor concerns about the company's transparency.
- Financial Performance vs. Market Reaction: Despite reporting nearly $1.2 billion in record net sales for Q1 2026, the market's reaction to the inventory issues has significantly eroded investor confidence, indicating worries about the company's financial health.
- Legal Investigation Initiated: Levi & Korsinsky LLP is investigating potential securities law violations by Gildan, encouraging affected investors to submit their information, which could expose the company to legal liabilities and further impact its stock price.
See More
Gildan Activewear Inc. Under Investigation for Securities Violations
- Investigation Launched: The Law Offices of Howard G. Smith have announced an investigation into Gildan Activewear Inc. (NYSE:GIL) regarding potential violations of federal securities laws, indicating significant legal risks that could undermine investor confidence.
- Financial Manipulation Allegations: A report by Jehoshaphat Research alleges that Gildan has been “stuffing the channel” to inflate revenues, which could cannibalize future demand and negatively impact the company's long-term growth trajectory.
- Stock Price Plunge: Following the announcement of the investigation, Gildan's stock price fell by $11.62, or 18.8%, closing at $50.35 per share on June 16, 2026, resulting in direct losses for investors and reflecting market concerns over the company's financial health.
- Investor Rights at Risk: The law firm is urging affected investors to come forward to pursue claims for recovery, highlighting the potential for ongoing legal challenges to further impact the company's market performance and investor trust.
See More
Gildan Activewear Shares Plunge 18.77% Amid Short Seller Report
- Significant Stock Drop: Gildan Activewear shares plummeted 18.77% on Tuesday, closing at $50.34, primarily due to concerns raised by a short seller report regarding the company's sales practices and growth trends, indicating a significant decline in market confidence about its future performance.
- Inventory Overhang Issue: The Jehoshaphat Research report alleged that Gildan shipped excess inventory to distributors beyond actual demand, creating an estimated $500 million inventory overhang, which not only impacts the company's cash flow but may also lead to future sales pressure.
- Negative Organic Growth: The report claimed that despite reported revenue growth, Gildan has experienced negative organic growth for years, raising investor concerns about the company's long-term growth potential, which could affect its market valuation.
- Financial Guidance Reaffirmed: Despite the pressure, Gildan reaffirmed its fiscal 2026 guidance, forecasting revenue between $6.0 billion and $6.2 billion and adjusted earnings per share of $4.20 to $4.40, demonstrating the company's confidence in future growth despite the negative market reaction.
See More
Block & Leviton Investigates Gildan Activewear for Securities Violations
- Stock Price Plunge: Gildan Activewear's shares fell over 20% on June 16, 2026, primarily due to a Jehoshaphat Research report alleging 'channel stuffing', resulting in an estimated $500 million product overhang, which directly impacts investor confidence and market performance.
- Negative Growth Allegations: The report further claims that despite reporting revenue growth, Gildan has experienced negative organic growth for years, creating inconsistencies that may attract regulatory scrutiny and affect future financing capabilities.
- Legal Investigation Initiated: Block & Leviton is investigating whether Gildan violated securities laws and may file a lawsuit on behalf of investors seeking to recover losses, indicating potential legal risks and financial liabilities for the company.
- Investor Action Recommendation: Investors are encouraged to contact Block & Leviton to learn how to recover losses, which not only provides legal support for affected shareholders but may also influence the company's future shareholder structure and market trust.
See More
