Gildan Activewear Under Investigation for Alleged Financial Misconduct
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Globenewswire
- Investigation Background: Bronstein, Gewirtz & Grossman, LLC is investigating potential claims against Gildan Activewear Inc. for allegedly inflating revenues through channel stuffing, which may cannibalize future demand, while transferring nearly half of its receivables off-balance sheet.
- Stock Price Reaction: Following the report, Gildan's stock price fell by $11.62, or 18.8%, closing at $50.35 per share on June 16, 2026, indicating significant market concern regarding the company's financial health.
- Investor Action: Investors are encouraged to visit Bronstein, Gewirtz & Grossman, LLC's website for more information and to assist in the investigation, highlighting the firm's proactive approach in seeking feedback and evidence from affected investors.
- Fee Structure: The law firm operates on a contingency fee basis, meaning they will only seek reimbursement for expenses and attorney fees from the court if they successfully recover funds, thereby reducing financial risk for investors.
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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: 51.890
Low
63.00
Averages
72.87
High
110.00
Current: 51.890
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 Shares Plunge 18% Amid Channel Stuffing Allegations
- Stock Price Drop: Gildan Activewear's shares plummeted over 18% on June 16 after Jehoshaphat Research published a report accusing the company of improper channel stuffing, resulting in a market cap loss of $2.15 billion, highlighting severe investor concerns regarding financial transparency.
- Investigation Launched: National shareholder rights firm Hagens Berman has initiated an investigation into Gildan to determine if federal securities laws were violated, indicating a declining trust in the company's sales practices among investors.
- Improper Sales Practices: The report alleges that Gildan engaged in improper channel stuffing and revenue recognition by compelling customers to pull forward sales, potentially undermining the integrity of its financial reporting and affecting future financing capabilities.
- Legal Implications: Should the investigation confirm the allegations, Gildan may face legal liabilities and compensation claims, which could have long-term negative impacts on its reputation and market position.
See More
Gildan Shareholders Lose Nearly 19% After Allegations of Channel Stuffing
- Stock Price Plunge: Gildan Activewear's stock plummeted 18.77% on June 16, 2026, following a report from Jehoshaphat Research, marking one of the largest single-day declines in the company's history, resulting in significant losses for investors, particularly those who bought at higher prices.
- Inventory Issues Exposed: The report alleged that Gildan had approximately $510 million in excess inventory, claiming the company inflated revenue growth through channel stuffing, which has led to negative organic growth for years, severely undermining investor confidence.
- Financial Guidance Reaffirmed: Despite the allegations, Gildan's SVP Jessy Hayem reaffirmed the FY-2026 guidance, stating confidence in the accuracy and comprehensiveness of their disclosures, attempting to stabilize market sentiment amid the turmoil.
- Legal Investigation Initiated: Affected investors are encouraged to contact Levi & Korsinsky to participate in a legal investigation against Gildan, potentially qualifying for recovery, highlighting the market's heightened scrutiny on corporate governance and transparency.
See More
Gildan Activewear Under Investigation by Investors Amid Allegations
- Investigation Background: Bronstein, Gewirtz & Grossman, LLC is investigating potential claims against Gildan Activewear Inc. due to allegations of channel stuffing to inflate revenues, raising concerns among investors about future demand.
- Financial Concerns: A report from Jehoshaphat Research highlights that Gildan obscures issues through financial engineering, transferring nearly half of its receivables off-balance sheet, which may undermine financial transparency and investor confidence.
- Stock Price Reaction: Following the investigation news, Gildan's stock price fell by $11.62, or 18.8%, closing at $50.35 per share on June 16, 2026, reflecting market worries regarding the company's financial health.
- Investor Action: Investors are encouraged to visit Bronstein, Gewirtz & Grossman, LLC's website for more information and to assist in the investigation, indicating a heightened focus on corporate governance and transparency in the market.
See More
Gildan Activewear Faces Severe Short-Selling Attack
- Short-Selling Report Released: Jehoshaphat Research published a scathing 60-page report on Tuesday, criticizing Gildan Activewear's performance, which led to an 11% drop in stock price in a single day, reflecting market pessimism about its future prospects.
- Short Position Disclosure: The firm disclosed a 4% short position in Gildan's total float, indicating strong confidence in the stock's decline, which further exacerbated negative sentiment in the market regarding the company.
- Serious Allegations: The report includes serious accusations such as channel stuffing, tax malfeasance, and accounting irregularities, which, if true, could significantly impact Gildan's financial health and governance, potentially leading to a loss of investor confidence.
- Swift Company Response: Gildan quickly responded to the report, asserting confidence in the transparency of its financial information and governance practices; however, the market's confidence in the company's future remains severely shaken.
See More
Gildan Accused of Channel Stuffing by Short Seller
- Short Seller Allegations: Jehoshaphat Research's 60-page report accuses Gildan Activewear of channel stuffing, resulting in an 11% drop in stock price, indicating a severe loss of market confidence in the company's financial transparency.
- Financial Misconduct Claims: Additional allegations of tax malfeasance and accounting irregularities further exacerbate investor concerns about Gildan's future performance, potentially impacting its financing capabilities and market reputation.
- Management Response: Gildan quickly asserted confidence in its financial disclosures and governance practices; however, the trust in its management may be undermined by these allegations, leading potential investors to adopt a cautious stance.
- Uncertain Market Outlook: Despite Gildan's recent acquisition of Hanesbrands showcasing some market expansion potential, the short seller's accusations may cause investors to be more hesitant in considering stock purchases, affecting future stock performance.
See More
Gildan Shares Plunge 18% Amid Channel Stuffing Allegations
- Stock Price Drop: Gildan Activewear's shares plummeted over 18% on June 16 following a report from Jehoshaphat Research, resulting in a $2.15 billion loss in market capitalization, indicating severe market concerns regarding the company's financial transparency.
- Investigation Launched: Hagens Berman has initiated an investigation into Gildan to determine if it violated federal securities laws, encouraging investors to report their losses, which reflects strong skepticism about the company's compliance.
- Improper Sales Practices: The report alleges that Gildan engaged in improper channel stuffing to prematurely recognize sales, involving extreme payment terms to incentivize customers to pull forward purchases, which could adversely affect the company's future financial performance.
- Internal Evidence Disclosure: Testimonies from former employees revealed that Gildan's sales team used incentives to compel distributors to make early purchases at quarter-end, and if true, this practice could significantly impact the company's reputation and legal compliance.
See More
Gildan Shares Plunge 18% Amid Channel Stuffing Allegations
- Stock Price Drop: Gildan Activewear's shares plummeted over 18% on June 16 after Jehoshaphat Research published a report accusing the company of improper channel stuffing, resulting in a market cap loss of $2.15 billion, highlighting severe investor concerns regarding financial transparency.
- Investigation Launched: National shareholder rights firm Hagens Berman has initiated an investigation into Gildan to determine if federal securities laws were violated, indicating a declining trust in the company's sales practices among investors.
- Improper Sales Practices: The report alleges that Gildan engaged in improper channel stuffing and revenue recognition by compelling customers to pull forward sales, potentially undermining the integrity of its financial reporting and affecting future financing capabilities.
- Legal Implications: Should the investigation confirm the allegations, Gildan may face legal liabilities and compensation claims, which could have long-term negative impacts on its reputation and market position.
See More
Gildan Shareholders Lose Nearly 19% After Allegations of Channel Stuffing
- Stock Price Plunge: Gildan Activewear's stock plummeted 18.77% on June 16, 2026, following a report from Jehoshaphat Research, marking one of the largest single-day declines in the company's history, resulting in significant losses for investors, particularly those who bought at higher prices.
- Inventory Issues Exposed: The report alleged that Gildan had approximately $510 million in excess inventory, claiming the company inflated revenue growth through channel stuffing, which has led to negative organic growth for years, severely undermining investor confidence.
- Financial Guidance Reaffirmed: Despite the allegations, Gildan's SVP Jessy Hayem reaffirmed the FY-2026 guidance, stating confidence in the accuracy and comprehensiveness of their disclosures, attempting to stabilize market sentiment amid the turmoil.
- Legal Investigation Initiated: Affected investors are encouraged to contact Levi & Korsinsky to participate in a legal investigation against Gildan, potentially qualifying for recovery, highlighting the market's heightened scrutiny on corporate governance and transparency.
See More
Gildan Activewear Under Investigation by Investors Amid Allegations
- Investigation Background: Bronstein, Gewirtz & Grossman, LLC is investigating potential claims against Gildan Activewear Inc. due to allegations of channel stuffing to inflate revenues, raising concerns among investors about future demand.
- Financial Concerns: A report from Jehoshaphat Research highlights that Gildan obscures issues through financial engineering, transferring nearly half of its receivables off-balance sheet, which may undermine financial transparency and investor confidence.
- Stock Price Reaction: Following the investigation news, Gildan's stock price fell by $11.62, or 18.8%, closing at $50.35 per share on June 16, 2026, reflecting market worries regarding the company's financial health.
- Investor Action: Investors are encouraged to visit Bronstein, Gewirtz & Grossman, LLC's website for more information and to assist in the investigation, indicating a heightened focus on corporate governance and transparency in the market.
See More
Gildan Activewear Faces Severe Short-Selling Attack
- Short-Selling Report Released: Jehoshaphat Research published a scathing 60-page report on Tuesday, criticizing Gildan Activewear's performance, which led to an 11% drop in stock price in a single day, reflecting market pessimism about its future prospects.
- Short Position Disclosure: The firm disclosed a 4% short position in Gildan's total float, indicating strong confidence in the stock's decline, which further exacerbated negative sentiment in the market regarding the company.
- Serious Allegations: The report includes serious accusations such as channel stuffing, tax malfeasance, and accounting irregularities, which, if true, could significantly impact Gildan's financial health and governance, potentially leading to a loss of investor confidence.
- Swift Company Response: Gildan quickly responded to the report, asserting confidence in the transparency of its financial information and governance practices; however, the market's confidence in the company's future remains severely shaken.
See More
Gildan Accused of Channel Stuffing by Short Seller
- Short Seller Allegations: Jehoshaphat Research's 60-page report accuses Gildan Activewear of channel stuffing, resulting in an 11% drop in stock price, indicating a severe loss of market confidence in the company's financial transparency.
- Financial Misconduct Claims: Additional allegations of tax malfeasance and accounting irregularities further exacerbate investor concerns about Gildan's future performance, potentially impacting its financing capabilities and market reputation.
- Management Response: Gildan quickly asserted confidence in its financial disclosures and governance practices; however, the trust in its management may be undermined by these allegations, leading potential investors to adopt a cautious stance.
- Uncertain Market Outlook: Despite Gildan's recent acquisition of Hanesbrands showcasing some market expansion potential, the short seller's accusations may cause investors to be more hesitant in considering stock purchases, affecting future stock performance.
See More
Gildan Shares Plunge 18% Amid Channel Stuffing Allegations
- Stock Price Drop: Gildan Activewear's shares plummeted over 18% on June 16 following a report from Jehoshaphat Research, resulting in a $2.15 billion loss in market capitalization, indicating severe market concerns regarding the company's financial transparency.
- Investigation Launched: Hagens Berman has initiated an investigation into Gildan to determine if it violated federal securities laws, encouraging investors to report their losses, which reflects strong skepticism about the company's compliance.
- Improper Sales Practices: The report alleges that Gildan engaged in improper channel stuffing to prematurely recognize sales, involving extreme payment terms to incentivize customers to pull forward purchases, which could adversely affect the company's future financial performance.
- Internal Evidence Disclosure: Testimonies from former employees revealed that Gildan's sales team used incentives to compel distributors to make early purchases at quarter-end, and if true, this practice could significantly impact the company's reputation and legal compliance.
See More
