Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsRetail & MarketingT-shirt maker Gildan plunges on short seller’s revenue claimIt’s the second time in the past year that the short seller took aim at the accounting practices of a Canadian companyAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.In a statement, Gildan reiterated its fiscal 2026 guidance and said it “is confident that its current disclosure provides its investors with accurate and comprehensive information.” Photo by Graham Hughes/BloombergShares of Gildan Activewear Inc. tumbled the most in more than six years after short seller Jehoshaphat Research published a negative report accusing the company of inflating revenue.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorJehoshaphat said it’s short the stock over so-called “channel stuffing,” alleging the apparel manufacturer has been boosting short-term growth figures by selling more product than necessary into a distribution channel. The firm said it came to this conclusion after interviewing former employees and customers and conducting an accounting analysis.Shares of Gildan fell as much as 25 per cent in Toronto on Tuesday, the most intraday since October 2019, before paring those losses to trade down 20 per cent to $69.06 as of 1:30 p.m.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“This pulling-forward of sales has been cannibalizing future demand and inflating the overall growth trajectory of this business,” Jehoshaphat said in the report, forecasting a potential 20 per cent miss on analysts’ sales estimates for the second half of the year. “This will expose the weaker revenue and earnings profile of the business.”In a statement, Gildan reiterated its fiscal 2026 guidance and said it “is confident that its current disclosure provides its investors with accurate and comprehensive information.”Jehoshaphat’s report said Gildan’s revenues “would have been declining for the past three years if not for heavy channel-stuffing” and that the recent acquisition of underwear maker Hanesbrands Inc. “adds more drag to the pro forma growth outlook.”UBS analysts led by Jay Sole saw the stock decline as a buying opportunity, saying they don’t believe Gildan will miss its 2026 revenue guidance. “We believe the company’s December analyst day will be a positive catalyst, not one where Gildan has to explain a big guidedown,” they wrote in a note.It’s the second time in the past year that Jehoshaphat has taken aim at the accounting practices of a Canadian company. Last year it wrote that subprime lender Goeasy Ltd. was delaying the recognition of bad loans. Goeasy denied the claims at the time, but in March it disclosed surprising large loan losses, sending its stock plunging. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.