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Mar 31, 2025
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.
Revenue by Geographic Location
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.
Revenue & Expenses
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Avg. Return Before/After Earnings
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