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Hanesbrands
🇺🇸 NYSE:HBI
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•
Jul 01, 2023

Hanesbrands Q2 2023 Earnings Report

Hanesbrands reported second-quarter results within its guidance range, reduced debt and inventory, and generated positive operating cash flow.

Key Takeaways

Hanesbrands reported second-quarter results in line with its outlook, delivering sequential gross margin improvement, further reducing inventory, generating positive operating cash flow, and beginning to pay down debt earlier than expected. The company adjusted its second-half outlook due to the difficult apparel market, particularly in Australia and the U.S. activewear category.

Net sales from continuing operations were $1.44 billion, a decrease of 5% compared to last year.

The Company reduced total debt by nearly $100 million in the quarter.

Inventory declined 12%, or $255 million, as compared to prior year.

The Company generated cash flow from operations of $88 million in the quarter.

Total Revenue
$1.44B
Previous year: $1.51B
-4.9%
EPS
-$0.01
Previous year: $0.28
-103.6%
Operating Profit Margin
4.8%
Previous year: 9.7%
-50.5%
Gross Profit
$483M
Previous year: $572M
-15.6%
Cash and Equivalents
$192M
Previous year: $248M
-22.6%
Free Cash Flow
$78.4M
Previous year: -$228M
-134.3%
Total Assets
$6.28B
Previous year: $7.09B
-11.4%

Hanesbrands

Hanesbrands

Hanesbrands Revenue by Segment

Hanesbrands Revenue by Geographic Location

Forward Guidance

For the third quarter of 2023, the Company expects net sales of approximately $1.52 billion to $1.57 billion, GAAP EPS of $0.04 to $0.10, and adjusted EPS of $0.07 to $0.13. For fiscal year 2023, the Company expects net sales of approximately $5.80 billion to $5.90 billion, GAAP EPS of $0.00 to $0.14, and adjusted EPS of $0.16 to $0.30.

Positive Outlook

  • The Company expects year-over-year improvement in second-half margins, particularly the fourth quarter.
  • Lower-cost inventory currently being produced is expected to be sold.
  • The company expects to exit the year with meaningfully higher gross and operating margins.
  • The company continues to expect to pay down more than $400 million of debt in 2023.
  • The company expects cash flow from operations of approximately $500 million.

Challenges Ahead

  • The outlook reflects a muted consumer demand environment given the continued macroeconomic uncertainty.
  • The outlook includes increased pressure in Australia and the U.S. activewear apparel market.
  • Net sales from continuing operations are expected to decline approximately 6% as compared to prior year.
  • GAAP earnings per share from continuing operations are expected to range from approximately $0.00 to $0.14.
  • Adjusted earnings per share from continuing operations are expected to range from approximately $0.16 to $0.30.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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