On June 18, Gildan Activewear rose 5.55% in regular trading, trading at $53.08/share, with turnover of $144 million. The rebound follows a 19% plunge in the prior session triggered by a short seller report.
On the news front, TD Cowen analyst Brian Morrison published a channel check report explicitly stating that allegations of channel stuffing at Gildan's largest customer S&S are inaccurate. According to Morrison's S&S contacts, Gildan's current inventory levels are consistent with projected growth rates. Regarding the increase in accounts receivable from $374 million in 2024 to $640 million in 2025, the analyst attributed this primarily to product mix shifts as higher-priced products are growing rapidly in revenue contribution, rather than evidence of improper sales practices.
The short seller Jehoshaphat Research had claimed Gildan used channel stuffing to inflate revenue growth, alleging distributors and customers were sitting on approximately $510 million in excess inventory as of Q1. Gildan subsequently issued a formal statement addressing the report. The analyst rebuttal and company response appear to have restored investor confidence, driving the intraday recovery.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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