Gildan hit with investor class action over alleged channel stuffing

An investor has filed a proposed securities class action against Gildan Activewear, the No. 5 supplier on the PPAI 100, in the U.S. District Court for the Northern District of New York. The Oct. 15 complaint relies on a June report from short seller Jehoshaphat Research alleging Gildan shipped distributors more inventory than they ordered to inflate growth.

That report claimed more than $500 million in revenue was pulled forward from later 2026 quarters, citing unnamed former employees, customers and distributors who described rebates and extended payment terms. Gildan said at the time that it stood by its disclosures; the suit argues the company has never offered a detailed rebuttal. The stock fell 18.7% on the day the report came out.

Other investors have until Dec. 14 to file motions, and no court date is set. The allegations are unproven; Gildan most recently reported second-quarter 2026 net sales of $1.58 billion, up nearly 75% from a year earlier.