By Adriano Marchese

Shares of Gildan Activewear plunged Tuesday after a short seller's report criticized the company's financial reporting and inventory management practices.

The stock was recently trading down 20% in Toronto at 69.59 Canadian dollars ($49.73) and 22% lower in New York at $48.56.

The day's decline marked the sharpest single-day decline for the Montreal-based apparel manufacture since October 2019, when shares fell nearly 26% for both its Toronto and New York-listed shares.

The stock drop on the Toronto Stock Exchange follows the publication of a report by Joheshaphat Research, which disclosed that it holds a short position in the company's stock.

The report by Joheshaphat Research criticized the company's financial reporting metrics and distributor inventory levels, questioning the sustainability of Gildan's multi-year organic growth trajectory and accounts receivable practices.

Later Tuesday, Gildan said in a release that it is aware of the published report and remained confident in its financial disclosures and governance practices. The company also backed its full-year guidance for fiscal 2026 and added that doesn't intend to provide any further comment at this time.

The day's selloff ranks as the sixth worst one-day decline on record for both exchanges, and erases the stock's gains over the last 52 weeks.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 16, 2026 13:18 ET (17:18 GMT)

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