Gildan Activewear's 2Q Results Should Dispel Market Concerns

Dow Jones07-08

1429 ET - Gildan Activewear's 2Q results should "do some of the talking" after a short seller report raised concerns, says TD Cowen's Brian Morrison. The analyst notes the short report raised red flags about Gildan's rising Days Sales Outstanding, which measures how long it takes a company to collect payment from sales. Morrison says in a note that this is because the industry is consolidating and also due to "a mix shift toward higher AUR [average unit retail] products leading to an increase in the duration of credit terms, rather than higher credit risk." Morrison adds that "Gildan is outperforming by taking market share due to its low-cost advantage but also as trends shift toward premium products focused upon 'comfort/fit'."(adriano.marchese@wsj.com)

(END) Dow Jones Newswires

July 07, 2026 14:29 ET (18:29 GMT)

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