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Hanesbrands
🇺🇸 NYSE:HBI
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Sep 26, 2020

Hanesbrands Q3 2020 Earnings Report

Hanesbrands reported strong sales, operating profit and cash flow on improving business trends.

Key Takeaways

Hanesbrands' Q3 2020 results showed resilience with net sales of $1.81 billion, driven by U.S. Innerwear and global Champion sales. GAAP EPS was $0.29, and adjusted EPS was $0.42. The company generated $249 million in operating cash flow and reduced debt by $130 million.

Net sales for the third quarter were $1.81 billion.

U.S. Innerwear sales increased 8.4% over last year, excluding protective garments.

Global Champion net sales more than doubled over previous quarter.

The company delivered $249 million of operating cash flow.

Total Revenue
$1.81B
Previous year: $1.87B
-3.2%
EPS
$0.42
Previous year: $0.54
-22.2%
Operating Profit Margin
9.7%
Previous year: 14.3%
-32.2%
Gross Profit
$617M
Previous year: $712M
-13.4%
Cash and Equivalents
$731M
Previous year: $317M
+130.7%
Free Cash Flow
$246M
Previous year: $280M
-12.1%
Total Assets
$8.16B
Previous year: $7.72B
+5.6%

Hanesbrands

Hanesbrands

Hanesbrands Revenue by Segment

Hanesbrands Revenue by Geographic Location

Forward Guidance

For the fourth-quarter 2020, net sales are expected to be approximately $1.60 billion to $1.66 billion. GAAP earnings per share is expected to range from $0.24 to $0.29 and adjusted EPS is expected to range from $0.25 to $0.30.

Positive Outlook

  • Net sales are expected to be approximately $1.60 billion to $1.66 billion.
  • Sales outlook includes approximately $50 million of protective garment sales and approximately $10 million of foreign exchange benefit.
  • GAAP operating profit is expected to range from $154 million to $174 million.
  • Adjusted operating profit is expected to range from $160 million to $180 million.
  • GAAP earnings per share is expected to range from $0.24 to $0.29 and adjusted EPS is expected to range from $0.25 to $0.30.

Challenges Ahead

  • The company’s outlook for the fourth quarter reflects continued uncertainty due to the COVID-19 pandemic and is based on the current business environment, including the recently implemented COVID-related restrictions in Europe.
  • The guidance does not reflect any potential impact to the consumer or operating environments should governments or businesses institute additional lockdowns and store closings.
  • Negative manufacturing variances are expected to pressure both gross and operating margins in the fourth quarter.
  • Higher SG&A expense are expected to pressure both gross and operating margins in the fourth quarter.
  • The midpoint of guidance represents a net sales decline of 7% compared with 2019.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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