The Globe and Mail reports in its Wednesday, June 17, edition that Gildan Activewear is facing scrutiny from a short seller claiming the company is inflating sales, causing its shares to drop 19 per cent and erasing about $3 -billion in market value. The Globe's Tim Kiladze writes that Jehoshaphat Research published a report Tuesday alleging Gildan has been incentivizing clients to order more product than they may need in a given quarter to boost Gildan's revenue. "We believe this company has been inflating its revenues through channel stuffing for years but is finally running out of room to do so, and this will expose the weaker revenue and earnings profile of the business," Jehoshaphat wrote in its report. On Tuesday, Gildan said it is "confident that its current disclosure provides its investors with accurate and comprehensive information regarding Gildan, including with respect to its financial information and governance practices." Gildan also reiterated its fiscal 2026 earnings guidance, which previously estimated full-year revenue of $6-billion (U.S.) to $6.2-billion (U.S.) and free cash flow above $850-million (U.S.). Jehoshaphat said its short position in Gildan is worth 4 per cent of Gildan's public float.