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Hanesbrands
🇺🇸 NYSE:HBI
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Jun 29, 2024

Hanesbrands Q2 2024 Earnings Report

Hanesbrands reported solid second-quarter results with better-than-expected performance in U.S. innerwear business and announced agreement to sell global Champion business and completed exit of U.S. outlet stores.

Key Takeaways

HanesBrands delivered solid second-quarter results in a challenging consumer and apparel market, with better-than-expected U.S. innerwear performance and margin expansion. Strategic actions, including the divestiture of global Champion, are expected to strengthen and simplify the business, positioning the company for consistent revenue growth, higher profit margins, and strong cash generation.

Net sales from continuing operations decreased 4% compared to prior year.

Adjusted operating profit from continuing operations increased 46% over prior year to $126 million.

Generated $78 million in cash flow from operations in a quarter that historically uses cash.

Company expects to pay down approximately $1 billion of debt in the second-half of 2024.

Total Revenue
$995M
Previous year: $1.44B
-30.8%
EPS
$0.15
Previous year: -$0.01
-1600.0%
Operating Profit Margin
-6.3%
Previous year: 4.8%
-231.3%
Gross Profit
$307M
Previous year: $483M
-36.4%
Cash and Equivalents
$214M
Previous year: $192M
+11.4%
Free Cash Flow
$71M
Previous year: $78.4M
-9.4%
Total Assets
$5.38B
Previous year: $6.28B
-14.3%

Hanesbrands

Hanesbrands

Hanesbrands Revenue by Geographic Location

Forward Guidance

For fiscal year 2024, the Company currently expects net sales from continuing operations of approximately $3.59 billion to $3.63 billion and adjusted earnings per share from continuing operations of approximately $0.31 to $0.37. For third-quarter 2024, the Company currently expects net sales from continuing operations of approximately $920 million to $950 million and adjusted earnings per share from continuing operations of approximately $0.09 to $0.14.

Positive Outlook

  • Net sales from continuing operations of approximately $3.59 billion to $3.63 billion.
  • Adjusted operating profit from continuing operations of approximately $395 million to $415 million.
  • Adjusted earnings per share from continuing operations of approximately $0.31 to $0.37.
  • Cash flow from operations of approximately $200 million.
  • Free cash flow of approximately $160 million.

Challenges Ahead

  • Net sales from continuing operations of approximately $920 million to $950 million
  • GAAP operating profit from continuing operations of approximately $85 million to $100 million.
  • Adjusted operating profit from continuing operations of approximately $105 million to $120 million.
  • GAAP earnings per share from continuing operations of approximately $0.03 to $0.08.
  • Adjusted earnings per share from continuing operations of approximately $0.09 to $0.14.

Company Overview

Full financial data and analysis

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