Gildan share price drops as much as 25% on short seller growth accusations

Signage is seen at Gildan Activewear Inc.'s annual meeting in Montreal, Tuesday, May 28, 2024. THE CANADIAN PRESS/Christinne Muschi

Gildan Activewear Inc.’s share price fell as much as 25 per cent after a short seller alleged the company obscured negative organic growth.

The Montreal-based clothing maker’s share price dropped throughout the morning and afternoon before closing out the trading day down almost 19 per cent to $70.39.

Earlier in the day, Jehoshaphat Research alleged Gildan had hidden its true performance by using channel stuffing.

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Channel stuffing is when a company inflates sales or growth numbers by allocating more products to distributors or retailers than they can realistically sell.

Gildan did not address the allegations directly but issued a statement to investors.

The company says it is confident that its current disclosure provides investors with accurate and comprehensive information and will not comment on the matter further.

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Tara Deschamps, The Canadian Press

This report by The Canadian Press was first published June 16, 2026.