Gildan reported rising sales and reaffirmed its 2026 outlook. A class action alleging securities fraud claims a promise-reality gap built on roughly $500 million in pulled-forward revenue.

NEW YORK, Oct. 22, 2026 /PRNewswire/ — SueWallSt highlights the gap between the promises of Gildan Activewear Inc. (NYSE: GIL) and the reality alleged in a securities class action filed on behalf of investors who purchased GIL securities between February 19, 2025 and June 15, 2026. Check if you might be eligible to recover your investment losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

Gildan reported 2025 net sales of $3,619.2 million, an increase of $348.6 million from $3,270.6 million in 2024. On June 16, 2026, a short seller report alleged that Gildan had pulled about $500 million in revenue forward from upcoming 2026 quarters, and GIL shares fell $11.63, or 18.7%, from $61.97 to close at $50.34. LEAD PLAINTIFF DEADLINE: December 14, 2026.

The Promise: Growth, Effective Controls, and a Steady Outlook

The company projected stability at every turn. Gildan’s annual reports showed net sales increasing from $3,270.6 million in 2024 to $3,619.2 million in 2025, an increase of $348.6 million, or 10.7%. Management told shareholders its controls were effective for both years, and on April 30, 2026, Gildan reiterated its fiscal 2026 guidance.

The Reality Alleged in the Lawsuit

The complaint alleges that this growth rested on channel stuffing, with distributors loaded with product beyond end-user demand. The short seller report cited in the action estimated that Gildan’s revenues “would have been declining for the past 3 years if not for heavy channel stuffing.” It also described one distributor “sitting on over six months of unpaid Gildan product” right after Christmas.

Even on the day of the decline, Gildan said it was “confident that its current disclosure provides its investors with accurate and comprehensive information” and reiterated its fiscal 2026 guidance. Plaintiffs contend that confidence did not reflect conditions in the distributor channel.

Gildan’s Promise-Reality Gap: By the Numbers

• Reported growth vs. alleged decline: Net sales rose about $202.6 million in 2025. The short report claimed underlying revenues had trended down since 2023.
• 2026 guidance vs. pulled-forward sales: Gildan reaffirmed its guidance on June 16, 2026. The report says roughly $500 million in revenue had “essentially come out of the upcoming quarters in 2026.”
• Scale of the gap: The alleged $500 million overhang is nearly 1.43 times the reported 2025 net sales increase.
• Hanes contribution vs. alleged undisclosed issues: 2025 results included $217 million in Hanes net sales and a $17 million Hanes net loss. The complaint asserts that channel stuffing also extended to Hanes.

“Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The lawsuit alleges Gildan reaffirmed its 2026 outlook while roughly $500 million in future sales had already been pulled into earlier periods. Shareholders are entitled to know whether reported growth reflects genuine end-user demand.” — Joseph E. Levi, Esq.

Learn more about the case or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the GIL Lawsuit

Q: What specific misstatements does the GIL lawsuit allege? A: The complaint alleges Gildan Activewear Inc. made materially false or misleading statements during the Class Period regarding its reported net sales and the effectiveness of its internal controls and disclosure controls. It alleges the Company used channel stuffing to create an appearance of revenue. When a June 16, 2026 short seller report alleging an approximately $500 million product overhang at distributors was published, the stock price declined sharply.

Q: When did Gildan allegedly mislead investors? A: The Class Period runs from February 19, 2025 to June 15, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the GIL class action filed in? A: The case was filed in the United States District Court for the Northern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.

Q: What if I already sold my GIL shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171

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SOURCE SueWallSt.com