Gildan Activewear (GIL) dropped 19% on the back of a Q3 miss, with $60M of the shortfall tied to product availability and $100M tied to sales mix and weak demand…

… which looks set to continue into Q4, forcing the company to cut its 2026 outlook and withdraw its 2028 targets.

The soft demand backdrop is topical, given a short report in June alleged that channel stuffing was being masked through off balance sheet receivables financing (factoring)…

… which creates an artificially low days sales outstanding. Adjusting for factoring, DSO would sit at nearly 130 days - signalling a weaker consumer backdrop...

… which is showing up in the multiple, as investors front-run negative estimates revisions and wait for next year’s investor day to reset expectations.

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