Gildan Activewear Drops After Short Seller Flags Sales Concerns
Gildan Activewear Inc. shares sank Tuesday after Jehoshaphat Research revealed a short position and accused the clothing maker of inflating revenue with channel stuffing. Short sellers bet on a stock’s decline, and channel stuffing means sending more goods to distributors or customers than end demand supports. Gildan’s shares on the NYSE were last down 21.7% at $48.50, dropping as low as $46.56 in heavy trading. MarketScreener data showed the stock on the TSX off about 20% to CA$68.96.
