Story perspectives

Gildan Shares Drop 19% Over Channel-Stuffing, Plans $2.2B Hanes Deal

6/17/2026

Summary

Gildan Shares Plunge

Gildan Activewear shares dropped 18.75% on Tuesday, closing at $70.39 and erasing $3 billion in value.
Jehoshaphat Research alleged Gildan used channel stuffing by urging excess orders, extending payment terms, and hiding it through off-balance factoring.
Gildan reiterated fiscal 2026 guidance of $6-$6.2 billion revenue and $850 million free cash flow.
CEO Glenn Chamandy announced a $2.2 billion acquisition of HanesBrands slated for August 2025.

Summary

Gildan Under Fire

Jehoshaphate Research claims Gildan’s organic growth has fallen 3% annually over the past three years, contradicting the company’s reported 1% increase.
The report also alleges personal tax misrepresentation by CEO Glenn Chamandy.
Three senior members of Gildan’s Ethics and Fraud Compliance Committee have resigned, raising governance concerns.
Factoring data show Gildan’s Days Sales Outstanding at 129 days company-wide and 195 days at its largest distributor, S&S.

History

Historical Context

In 2001 Enron’s $63.4 billion asset collapse and $40 billion shareholder lawsuit exposed massive accounting fraud, prompting the 2002 Sarbanes-Oxley Act to tighten oversight. Regulators now cite that precedent as they examine Gildan Activewear’s alleged revenue inflation tied to a $2.2 billion HanesBrands deal, underscoring continued demand for stricter corporate governance and investor confidence.

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Gildan Shares Plunge

Gildan Activewear shares dropped 18.75% on Tuesday, closing at $70.39 and erasing $3 billion in value.
Jehoshaphat Research alleged Gildan used channel stuffing by urging excess orders, extending payment terms, and hiding it through off-balance factoring.
Gildan reiterated fiscal 2026 guidance of $6-$6.2 billion revenue and $850 million free cash flow.
CEO Glenn Chamandy announced a $2.2 billion acquisition of HanesBrands slated for August 2025.

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