Shares of Gildan Activewear Inc (NYSE:GIL) are sliding Tuesday morning following the release of a short report by Jehoshaphat Research. Here’s what investors need to know.
Gildan Activewear stock is among today’s weakest performers. What’s behind GIL decline?
Short Seller Accuses Gildan Of Artificially Inflating Sales
Jehoshaphat Research argues that Gildan has been artificially inflating its growth narrative through aggressive “channel stuffing” to advance short-term growth and pull forward future demand.
According to the report, Gildan’s true organic growth over the last three years is negative, averaging a 3% annual decline rather than the reported 1% increase. Jehoshaphat asserts that this reality is obscured by financial engineering, specifically off-balance sheet accounts receivable factoring.
