A couple of landmines went off in consumer discretionary today, with Groupe Dynamite (GRGD) dropping over 35% on its Q1 - which beat estimates but showed decelerating same-store growth…

… of 9% so far in Q2, which sits below full-year guidance of 11-14% - prompting nearly four turns of multiple compression as investors front-run estimates revisions.

In parallel, Gildan (GIL) fell nearly 20% on a short report…

… from the same group that called the goeasy blow up. The main accusation in this one is channel stuffing, which is being masked by the company financing a portion (~40%) of its receivables off balance sheet…

… creating an artificially low days sales outstanding and signalling a demand environment that’s softer than reported revenue growth might suggest.

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