News June 17, 2026
Short Seller Claims Gildan Inflated Sales
In response to claims published by Jehoshaphat Research this week, Gildan reiterated confidence in its public disclosures and 2026 fiscal guidance.
Key Takeaways
• Shares of Counselor Top 40 supplier Gildan Activewear (asi/56842) fell after short seller Jehoshaphat Research alleged the apparel manufacturer inflated sales through channel stuffing and other financial practices.
• Gildan rejected the allegations and reiterated its fiscal 2026 guidance, maintaining confidence in its public disclosures and financial reporting.
Shares fell for Counselor Top 40 supplier Gildan Activewear (asi/56842) this week after short seller Jehoshaphat Research published a report alleging the apparel manufacturer inflated sales.
Gildan disputed Jehoshaphat’s claims, saying that it remains confident that its most recent public disclosure provides accurate and comprehensive information about the company.
Jehoshaphat alleged Gildan’s revenue growth has been inflated by what the firm characterized as “channel stuffing,” or the practice of pushing short-term growth by selling more product into a distribution channel than necessary for demand. This, Jehoshaphat claimed, has manifested in significant excess inventory in Gildan’s distribution channels, which include several other Counselor Top 40 suppliers.
The short seller also alleged that “financial engineering” related to Gildan’s days sales outstanding (DSO) metric – which measures the amount of time between when an order is placed on credit and when the company is paid – obscured declining revenue. Jehoshaphat contended Gildan’s true DSO is close to 130 days across the company, and 195 days for the company’s top distribution channel.
Gildan rejected the allegations and said it continues to stand by its most recent public disclosures and fiscal 2026 guidance. In its April release covering Q1 2026, Gildan projected total 2026 sales to reach between $6 billion and $6.2 billion, with anticipated adjusted diluted earnings per share of $4.20 to $4.40. These expectations account for the expected impact of tariffs on earnings, as well as the continued successful integration of Hanesbrands – which Gildan fully acquired in December – into Gildan’s portfolio, the company said.
“The Company is confident that its current disclosure provides its investors with accurate and comprehensive information regarding Gildan, including with respect to its financial information and governance practices,” Gildan said in a statement.
Based on estimated 2024 North American promotional product revenue of $784 million, Gildan ranks third on Counselor’s most recent list of the largest suppliers in the industry. New rankings will be released in July.