Gildan Activewear Inc. (GIL.TO): Quick Thoughts Following Mgmt Discussion About Bearish Research Report

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Gildan Activewear Inc. (GIL.TO): Quick Thoughts Following Mgmt Discussion About Bearish Research Report

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16 Jun 2026 22:27:06 ET │ 10 pages

Gildan Activewear Inc. (GIL.TO)

Quick Thoughts Following Mgmt Discussion About Bearish Research

Report

CITI’S TAKE Neutral

Earlier today, short-seller Jehoshaphat Research put out a report with a Price (16 Jun 26 16:00) US$50.93

negative view on GIL. The report suggested that the increase in GIL’s Target price US$69.00

Accounts Receivable (and higher DSOs) implies pulling forward sales in

Expected share price return 35.5% the wholesale distributor channel (mainly S&S/Alphabroder), and using

factoring (selling a portion of its AR) to move some of its A/R off balance Expected dividend yield 2.0%

sheet. In our discussion with mgmt, they focused on how they reiterated Expected total return 37.4%

F26 guidance in their press release today (in response to the report), and Market Cap US$9,432M

they needed more time to craft a detailed response. They emphasized that

inventory availability is key in that channel and when S&S/Alphabroder

are combined, GIL expected an increase in its inventory, as S&S typically

holds more days of inventory on hand. We didn’t come away from our Paul Lejuez, CFA, CPAAC

conversation with a clear understanding of the health of inventory in the +1-212-816-6462

channel or the higher DSO/factoring dynamic. We maintain Neutral rating. paul.lejuez@citi.com

Brandon Cheatham, CFA

Key takeaways from speaking with mgmt: 1) GIL has given S&S exclusive rights to +1-212-816-7113

certain products and increased its inventories of higher-priced, slower-moving brandon.cheatham@citi.com

products (e.g., American Apparel, All Pro, Champion), which mgmt referenced to Tracy Kogan