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Jul 03, 2021
Hanesbrands Q2 2021 Earnings Report
Hanesbrands announced strong second-quarter 2021 results, exceeding guidance for revenue, operating profit, operating margin, and EPS from continuing operations.
Key Takeaways
HanesBrands reported strong second-quarter 2021 results with increased sales, operating profit, and cash flow, driven by strong performance across its global innerwear and activewear businesses. Net sales from continuing operations totaled $1.75 billion, up 13% over the prior year and 15% over second-quarter 2019. The company raised its second-half and full-year 2021 guidance for net sales, operating profit, and EPS from continuing operations.
Net sales from continuing operations of $1.75 billion, up 13% over prior year; up 15% over second-quarter 2019
GAAP EPS from continuing operations of $0.42; adjusted EPS from continuing operations of $0.47
Growth driven by global Champion brand and U.S. Innerwear
Global Champion sales up more than 120% over prior year and 21% over second-quarter 2019
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
For third-quarter 2021, Hanesbrands expects net sales from continuing operations of approximately $1.78 billion to $1.81 billion, GAAP EPS from continuing operations to range from $0.42 to $0.45 and Adjusted EPS from continuing operations to range from $0.45 to $0.48.
Positive Outlook
- Net sales from continuing operations of approximately $1.78 billion to $1.81 billion, which represents approximately 6% growth over prior year at the midpoint and includes a projected benefit of approximately $16 million from changes in foreign currency exchange rates.
- Excluding PPE, net sales at the midpoint of the guidance range are expected to increase 19% over the prior year period.
- As compared to rebased third-quarter 2019, net sales at the midpoint are expected to increase 11%.
- GAAP operating profit from continuing operations to range from approximately $216 million to $226 million.
- Charges for actions related to Full Potential of approximately $19 million.
Challenges Ahead
- Adjusted operating profit from continuing operations to range from approximately $235 million to $245 million. The midpoint of adjusted operating profit implies an operating margin of approximately 13.4% and reflects the impact of cost inflation as well as increased brand investment.
- This compares to an adjusted operating margin of 14.3% in the third-quarter of 2020, which benefited from temporary COVID-driven cost reductions.
- Interest and Other expenses of approximately $45 million.
- An effective tax rate of approximately 12% on a GAAP basis and approximately 15% on an adjusted basis.
- GAAP earnings per share from continuing operations to range from $0.42 to $0.45.