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Jun 28
Hanesbrands Q2 2025 Earnings Report
Hanesbrands Inc. announced better-than-expected second-quarter 2025 results, with increases in net sales, gross margin, operating profit, and EPS, leading to a raised full-year outlook.
Key Takeaways
Hanesbrands Inc. delivered strong second-quarter 2025 results, exceeding expectations with a 1.8% increase in net sales to $991 million. The company saw significant improvements in profitability, with gross margin rising to 41.6% and operating profit surging by 345% to $155 million. Diluted EPS increased by 162% to $0.24. The balance sheet was strengthened with a reduced leverage ratio of 3.3 times.
Net Sales increased by 1.8% year-over-year, reaching $991 million, exceeding expectations for the third consecutive quarter.
Gross Margin significantly improved by 1,100 basis points to 41.6%, driven by cost savings, productivity initiatives, and lower input costs.
Operating Profit soared by 345% to $155 million, with Operating Margin increasing by 2,210 basis points to 15.6%.
Diluted Earnings Per Share (EPS) rose by 162% to $0.24, and the company's leverage ratio decreased to 3.3 times, strengthening the balance sheet.
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Hanesbrands Inc. raised its full-year 2025 outlook for net sales, operating profit, and EPS, reflecting strong performance and expected benefits from cost savings and input costs.
Positive Outlook
- Full-year 2025 net sales from continuing operations are expected to be approximately $3.53 billion, a slight increase over prior year.
- GAAP Operating Profit from continuing operations is projected at approximately $471 million for the full year 2025.
- Adjusted Operating Profit from continuing operations is expected to be approximately $485 million for the full year 2025.
- GAAP Earnings Per Share from continuing operations is anticipated to be approximately $0.59 for the full year 2025.
- Adjusted Earnings Per Share from continuing operations is expected to be approximately $0.66 for the full year 2025.
Challenges Ahead
- Full-year 2025 net sales outlook includes projected headwinds of approximately $35 million from changes in foreign currency exchange rates.
- Full-year 2025 adjusted operating profit outlook includes a projected headwind of approximately $5 million from changes in foreign currency exchange rates.
- Full-year 2025 other expenses include approximately $10 million of one-time pretax charges related to first-quarter 2025 refinancing activities.
- Third-quarter 2025 net sales outlook includes projected headwinds of approximately $7 million from changes in foreign currency exchange rates.
- Third-quarter 2025 adjusted operating profit outlook includes a projected headwind of approximately $1 million from changes in foreign currency exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income