India, June 17 -- Gildan Activewear Inc. (GIL) shares fell 18.77% on Tuesday to close at $50.34 after a short seller report raised concerns about the company's sales practices and growth trends.
The report, published by Jehoshaphat Research on June 16, alleged that Gildan had shipped excess inventory to distributors beyond underlying demand, creating an estimated $500 million inventory overhang. It also claimed the company's organic growth has been negative for years despite reported revenue growth and questioned certain sales practices.
The apparel manufacturer said it is aware of the report, but "remains confident that its disclosures provide investors with accurate and comprehensive information regarding the company, including its fina...