0854 ET - Gildan Activewear's sales practices likely aren't as problematic as a short seller has alleged, according to TD Cowen analyst Brian Morrison, "and that the assertion of channel stuffing at its largest customer, S&S, is incorrect per our S&S and industry channel checks," he says. "More importantly, our S&S contact stated that current Gildan inventory is in line with their forecast growth rate, and the increase in 2025 A/R [accounts receivable] to $640mm from $374mm in 2024 pertains somewhat to sales timing, and more so to product mix as it incurs rapid growth in high unit revenue items," Morrison says in a report. Gildan Activewear plunged 19% Tuesday after short seller Jehoshaphat Research criticized the company's financial reporting metrics and distributor inventory levels. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

June 17, 2026 08:54 ET (12:54 GMT)

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