The report published by Jehoshaphat Research, which holds a short position in the company, alleges discrepancies in distributor inventory levels and questions the legitimacy of Gildan’s multi-year organic growth trajectory. Investors reacted to these claims by erasing the stock’s gains from the past 52 weeks, pushing shares in Toronto to 69.59 Canadian dollars and to $48.56 in New York.

Gildan responded by issuing a statement affirming confidence in its governance and financial disclosures. The Montreal-based firm maintained its full-year guidance for fiscal 2026, signaling that it has no intention to address the specific allegations further. This volatility represents the sixth-largest one-day decline in the company’s history.