Gildan Activewear executives described distributor inventory as "healthy" and "in balance" across multiple earnings calls -- then shares fell nearly 19% when a short-seller alleged $510 million in excess channel inventory.
NEW YORK, June 17, 2026 /PRNewswire/ -- Investors who held Gildan Activewear (NYSE: GIL) shares lost 18.77% of their investment today after Jehoshaphat Research published a report alleging the Company had been channel-stuffing distributors with approximately $510 million in excess inventory. Shareholders who suffered losses on their GIL investment are encouraged to submit their information to Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
The short-seller report directly contradicts a series of executive statements spanning 3 years. On the Q1 2025 call (April 29, 2025), CEO Glenn Chamandy stated: "As far as the inventory in the channel, it's in good balance, and we haven't seen any sign of destocking." On the Q3 2025 call (October 29, 2025), Chamandy told investors: "Our sales in the distributor channel remain healthy, and we're seeing sustained momentum in our national account customers." By Q1 2026 (April 30, 2026), the Company reported "record" first quarter net sales of "nearly $1.2 billion."
As recently as April 30, 2026, CEO Chamandy and CFO Luca Barile signed certifications in the Company's 6-K filing attesting that interim filings "do not contain any untrue statement of a material fact or omit to state a material fact required to be stated." Today, GIL shares fell more than 18% in a single session following allegations that the distributor channel those statements described was carrying half a billion dollars in excess inventory.
If you purchased Gildan Activewear shares and suffered a loss, click here to discuss your legal rights with Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the GIL Investigation
Q: Who is conducting the GIL investigation?A: Levi & Korsinsky, LLP is investigating potential securities law violations on behalf of investors who purchased GIL securities and suffered financial losses. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Gildan Activewear made materially false or misleading statements regarding the health of its distributor channel and inventory levels. When allegations of approximately $510 million in excess distributor inventory surfaced, the stock price declined 18.77%.
Q: Who is eligible to participate in the GIL investigation?A: Investors who purchased GIL stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do GIL investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my GIL shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought GIL and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I live outside the United States?A: U.S. securities fraud investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
View original content to download multimedia:https://www.prnewswire.com/news-releases/gildan-activewear-investigation-initiated-levi--korsinsky-investigates-the-officers-and-directors-of-gildan-activewear-gil-302803368.html
SOURCE Levi & Korsinsky, LLP
