Short-seller Jehoshaphat Research issued a report that sent Gildan's shares down 19% on June 16. Its main allegation is that the firm is offering generous payment terms to distributors to inflate sales. Gildan responded by reiterating its guidance and the accuracy of its financial disclosures.
Gildan has dominant market share in printwear basics and has invested in a low-cost production and distribution process to maintain its position. Demand for imprintables has recovered since a significant drop during the pandemic.
Bears
The Hanesbrands deal is the largest in Gildan’s history and brings execution risks. Hanesbrands has had inconsistent results over the years, and the branded basics market is competitive.
Gildan is a vertically integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. It is a leader in blank T-shirts, sweatshirts, and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels, a business that has been greatly enhanced by the Hanesbrands acquisition. Gildan’s brands include Hanes, Bali, Maidenform, Playtex, Gildan, American Apparel, Comfort Colors, and Goldtoe. Gildan produces most of its clothing at factories in Latin America but has been ramping up production at its new facility in Bangladesh. Incorporated in 1984, the Montreal-based company operates internationally but generated 90% of its sales in the US in 2025.