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Mar 31
Hanesbrands Q1 2025 Earnings Report
HanesBrands Inc. reports better-than-expected first quarter results, with increased revenue, operating profit, and earnings per share, while reiterating full-year guidance.
Key Takeaways
HanesBrands Inc. delivered a strong first quarter in 2025, exceeding expectations with increased revenue, operating profit, and earnings per share. The company's growth strategy and transformation initiatives contributed to these positive results. Full-year guidance was reiterated, reflecting the expected impacts from U.S. tariffs, which the company aims to mitigate through cost reductions and pricing actions.
Net Sales increased 2.1% over the prior year to $760 million, remaining consistent on an organic constant currency basis.
GAAP Operating Profit surged by 126% to $80 million, with GAAP Operating Margin increasing 575 basis points to 10.5%.
Adjusted EPS increased by 240% to $0.07, compared to $0.04 GAAP EPS.
The company completed the refinancing of all 2026 maturities and reduced leverage to 3.6 times net debt-to-adjusted EBITDA, down from 5.0 times in the prior year.
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, HanesBrands expects net sales to be approximately $970 million, consistent with the prior year on a reported and organic constant currency basis. GAAP Operating Profit is projected at approximately $129 million, and Adjusted Operating Profit at approximately $136 million. Diluted EPS is expected to be $0.16 GAAP and $0.18 Adjusted.
Positive Outlook
- Net Sales for Q2 2025 are expected to be relatively consistent with prior year on both a reported and organic constant currency basis.
- Adjusted Operating Profit for Q2 2025 is projected to be $136 million, excluding pretax charges for restructuring and other action-related charges.
- Full-year 2025 Net Sales are expected to be relatively consistent with prior year on a reported basis and increase approximately 1% on an organic constant currency basis.
- Full-year 2025 Adjusted Operating Profit is projected to be between $450 million and $465 million, excluding pretax charges.
- Full-year 2025 Free Cash Flow is expected to be approximately $300 million.
Challenges Ahead
- Q2 2025 Net Sales include projected headwinds of approximately $15 million from changes in foreign currency exchange rates.
- Q2 2025 Adjusted Operating Profit outlook includes a projected headwind of approximately $2 million from changes in foreign currency exchange rates.
- Full-year 2025 Net Sales include projected headwinds of approximately $60 million from changes in foreign currency exchange rates.
- Full-year 2025 Adjusted Operating Profit outlook includes a projected headwind of approximately $8 million from changes in foreign currency exchange rates.
- The company's guidance reflects its expected impact from U.S. tariffs and is subject to change in the future.
Revenue & Expenses
Visualization of income flow from segment revenue to net income