Gildan Activewear (GIL) Stock Drops After Short Seller Report, Company Reaffirms 2026 Guidance

Gildan Activewear (GIL) shares fell on June 17, 2026, following a short seller report from Spruce Point Capital Management. The report alleged overstated inventory and other accounting issues, though Gildan promptly reaffirmed its 2026 financial guidance. Spruce Point's report claimed Gildan's inventory levels were inflated, suggesting potential accounting irregularities and a lack of transparency. The short seller also questioned the company's operational efficiency and financial disclosures. In response, Gildan Activewear stated the report contained "inaccurate and misleading statements." The apparel manufacturer reiterated its 2026 financial targets, projecting revenue of $3.5 billion and an adjusted EBITDA margin between 22-24%.