GIL Investor Alert: Levi & Korsinsky Investigates Gildan Activewear (GIL) for Potential Securities Fraud

Gildan Activewear guided investors toward "record" sales and reaffirmed FY-2026 outlook while an alleged $510 million distributor inventory glut went undisclosed, then shares dropped 18.77%.

NEW YORK--(BUSINESS WIRE)--Shareholders who held Gildan Activewear (NYSE: GIL) lost nearly 19% of their investment value today after Jehoshaphat Research published allegations that Gildan had been stuffing distributor channels with approximately $510 million in excess inventory, a condition never referenced in the Company's forward guidance or outlook statements. Those who lost money on GIL are encouraged to submit their information to Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [e-mail] or by telephone at [phone].

Gildan's forward-looking statements painted a picture of sustained growth. On the Q1 2026 earnings call on April 30, 2026, CEO Glenn Chamandy highlighted "record Q1 sales from continuing operations of nearly $1.2 billion." The Company reaffirmed its FY-2026 guidance. Neither the earnings call nor the accompanying 6-K filing referenced the distributor inventory conditions now alleged by the short-seller report. Specifically, Gildan's Q1 2026 press release framed inventory reduction as "proactive" -- with no mention of the approximately $500 million in alleged excess inventory sitting in distributor warehouses.

The pattern extended back multiple quarters. On the Q1 2025 call, Chamandy stated inventory in the channel was "in good balance" with no signs of de-stocking. On the Q3 2025 call, he described distributor channel sales as "healthy." The FY-2026 guidance reaffirmation came without any disclosure of the headwinds now alleged to have been building across the distribution network. Following the short report, Gildan again reaffirmed its guidance through a press release on June 16, 2026.

If you purchased Gildan Activewear shares and suffered a loss, click here to discuss your rights with Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [e-mail] or by telephone at [phone].

Levi & Korsinsky, LLP | Top 50 Securities Firm | [phone] | www.zlk.com

Frequently Asked Questions About the GIL Investigation

Q: How much did GIL stock drop? A: Shares fell almost 19% on June 16, 2026, after Jehoshaphat Research published a report alleging channel-stuffing and approximately $510 million in excess distributor inventory. Investors who purchased shares at higher prices may be eligible to participate in the investigation.

Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Gildan Activewear made materially false or misleading statements regarding distributor inventory levels and the sustainability of reported sales growth. Across multiple earnings calls from 2023 through 2026, executives described channel inventory as "healthy” and "in balance" -- characterizations now contradicted by the short-seller's allegations.

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 [e-mail] or [phone]. 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: How long will the investigation take to resolve? A: Securities fraud investigations typically take two to four years from initiation to resolution.

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.