Gildan Activewear Inc.‘s share price fell more than 20 per cent after a short seller alleged the company obscured negative organic growth.
The Montreal-based clothing maker’s share price dropped by more than $16 or 18.5 per cent to reach $70.38 in afternoon trading.
Earlier in the day, Jehoshaphat Research alleged Gildan had hidden its true performance by using channel stuffing.
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.
This report by The Canadian Press was first published June 16, 2026.
Companies in this story: (TSX:GIL)
