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Jul 02, 2022
Hanesbrands Q2 2022 Earnings Report
Second-quarter results fell below expectations due to unexpected events and a difficult global operating environment.
Key Takeaways
HanesBrands' second-quarter net sales decreased by 14% to $1.51 billion, impacted by a cyber event and softer point-of-sale trends. GAAP EPS was $0.26, and adjusted EPS was $0.28. The company is updating its full-year guidance to reflect changes in foreign currency exchange rates, costs associated with inventory reduction, and slow consumer demand.
Net sales decreased 14% versus prior year, but increased 75% on a two-year stack basis excluding PPE.
GAAP EPS was $0.26; adjusted EPS was $0.28.
The cyber event had a negative impact on net sales, adjusted operating profit, and EPS of approximately $100 million, $35 million, and $0.08, respectively.
The company continues progress on its Full Potential growth strategy.
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company has taken a more prudent view of its second-half net sales and profit outlook to reflect the changes in foreign currency exchange rates; short-term costs associated with actions to reduce inventory by year-end; and an assumption that slow consumer demand continues and the retail environment remains challenging.
Positive Outlook
- Net sales from continuing operations of approximately $1.73 billion to $1.78 billion for Q3 2022.
- GAAP operating profit from continuing operations to range from approximately $129 million to $149 million for Q3 2022.
- Adjusted operating profit from continuing operations to range from approximately $160 million to $180 million for Q3 2022.
- GAAP earnings per share from continuing operations to range from approximately $0.20 to $0.25 for Q3 2022.
- Adjusted earnings per share from continuing operations to range from approximately $0.27 to $0.32 for Q3 2022.
Challenges Ahead
- Net sales from continuing operations of approximately $6.45 billion to $6.55 billion for fiscal year 2022.
- GAAP operating profit from continuing operations to range from approximately $570 million to $620 million for fiscal year 2022.
- Adjusted operating profit from continuing operations to range from approximately $630 million to $680 million for fiscal year 2022.
- GAAP earnings per share from continuing operations to range from approximately $0.97 to $1.09 for fiscal year 2022.
- Adjusted earnings per share from continuing operations to range from approximately $1.11 to $1.23 for fiscal year 2022.