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Gildan Share Price Drops More than 20% on Short Seller Growth Accusations
- On Tuesday, Montreal-based Gildan Activewear Inc. reaffirmed its fiscal 2026 financial guidance in response to a report published by Florida-based investment firm Jehoshaphat Research alleging revenue inflation.
- Jehoshaphat Research alleges Gildan incentivized clients to over-order inventory by extending payment periods to 90 days or 120 days, warning of a looming $800 million revenue expectations gap for the second half of 2026.
- Shares tumbled 20.90% to $49.02 on Tuesday as the report claimed Gildan's true Days Sales Outstanding reached an "insane" 195 days at largest distributor S&S, far exceeding the 129-day company-wide average.
- Gildan stated it is confident its current disclosure provides investors accurate information regarding governance and financial practices, despite allegations of personal tax misrepresentation facing CEO Glenn Chamandy.
- The stock is down 75% over the last year following a high-profile conflict between Chamandy and the board, which led to his removal in December 2023 and subsequent reinstatement.
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20 Articles
20 Articles
Gildan's turn was to be struck by a short seller. The action of the Montreal clothing manufacturer lost 19% on Tuesday following the publication of a research report questioning the integrity of management.
·Montreal, Canada
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Coverage Details
Total News Sources20
Leaning Left8Leaning Right2Center6Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 38%
12%
Factuality
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