Gildan Activewear Inc. Investigation
Company: Gildan Activewear Inc.
Ticker: (NYSE) GIL
Join the Gildan Activewear Inc. Investigation
Investigation Details
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.