Gildan Activewear Plunges on Short Seller Revenue Accusation

Gildan Activewear shares suffered their steepest drop in over six years after short seller Jehoshaphat Research published a report alleging the company inflated revenue figures.

The report, which targets the Montreal-based apparel manufacturer known for its T-shirts and activewear, claims that Gildan used accounting maneuvers to boost reported revenue. Shares fell as much as 15%, erasing billions in market value. The company has not yet responded to the allegations. Short-seller reports often trigger sharp selloffs, as they raise doubts about financial integrity and can lead to regulatory scrutiny.

For equity traders, the episode highlights the vulnerability of consumer discretionary stocks to reputational risk. Gildan's business model relies on volume sales to wholesale and retail partners; any suggestion of revenue manipulation could strain relationships with customers and suppliers. Investors should monitor the company's official response and any subsequent analyst downgrades. The broader apparel sector may also face contagion risk if similar accounting concerns emerge elsewhere. For current pricing on Gildan and other affected stocks, check NowPrice's equities page.

Looking ahead, the key catalysts will be Gildan's formal rebuttal, potential SEC or exchange inquiries, and the next earnings report. Short interest in the stock may rise further if the allegations gain traction. Traders should watch for any insider trading filings or changes in institutional ownership that could signal confidence levels.