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Oct 02, 2021
Hanesbrands Q3 2021 Earnings Report
Hanesbrands reported strong third-quarter results, executing its Full Potential growth plan and exceeding guidance for operating profit and EPS.
Key Takeaways
HanesBrands announced strong Q3 2021 results, with net sales of $1.79 billion, up 6% year-over-year, and adjusted EPS of $0.53. The company is maintaining its Q4 outlook for net sales and adjusted operating profit, driven by continued demand and a strong inventory position.
Net sales from continuing operations increased 6% year-over-year to $1.79 billion, and 18% excluding PPE sales.
GAAP EPS from continuing operations was $0.50, while adjusted EPS from continuing operations was $0.53.
Global Champion brand sales surged more than 33% year-over-year and 20% over third-quarter 2019.
U.S. Innerwear sales rose 12% year-over-year, excluding PPE, and 25% over third-quarter 2019.
Revenue by Geographic Location
Forward Guidance
The Company is reiterating Q4 net sales and adjusted operating profit guidance, driven by consumer demand and strong inventory position.
Positive Outlook
- Net sales from continuing operations of approximately $1.71 billion to $1.78 billion, which represents approximately 3% growth over prior year at the midpoint.
- Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 8% over the prior year period.
- As compared to rebased fourth-quarter 2019, net sales at the midpoint are expected to increase 15%.
- GAAP operating profit from continuing operations to range from approximately $182 million to $202 million.
- Adjusted operating profit from continuing operations to range from approximately $200 million to $220 million.
Challenges Ahead
- The midpoint of adjusted operating profit represents an operating margin of approximately 12.0% and reflects the impact of cost inflation as well as increased brand investment.
- Charges for actions related to Full Potential of approximately $18 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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