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Gildan Activewear Inc.’s share price fell as much as 25 per cent after a short seller alleged the company obscured negative organic growth.
The Montreal-based clothing maker’s share price dropped throughout the morning and afternoon before closing out the trading day down almost 19 per cent to $70.39.
Earlier in the day, Jehoshaphat Research alleged Gildan had hidden its true performance by using channel stuffing.
Channel stuffing is when a company inflates sales or growth numbers by allocating more products to distributors or retailers than they can realistically sell.
Gildan did not address the allegations directly but issued a statement to investors.
The…
