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Oct 01, 2022
Hanesbrands Q3 2022 Earnings Report
Hanesbrands' operating profit and EPS were in line with guidance, despite a tougher sales environment. The company made progress on its Full Potential growth strategy, launching new innerwear products and improving its global supply chain network.
Key Takeaways
HanesBrands reported a 7% decrease in net sales to $1.67 billion, but a decrease of 3% in constant currency. GAAP EPS was $0.23, and adjusted EPS was $0.29. The company is focused on controlling costs and optimizing its global supply chain.
Net sales decreased 7% on a reported basis to $1.67 billion; net sales decreased 3% versus prior year in constant currency.
GAAP EPS from continuing operations of $0.23; adjusted EPS from continuing operations of $0.29.
Operating profit and EPS from continuing operations in-line with guidance.
Continues progress on Full Potential growth strategy, including launch of new innerwear products aimed at younger consumers and actions to improve flexibility and lower cost within its global supply chain network.
Hanesbrands
Hanesbrands
Forward Guidance
For fourth-quarter 2022, Hanesbrands expects net sales from continuing operations of approximately $1.40 billion to $1.45 billion. GAAP operating profit from continuing operations to range from approximately $53 million to $83 million. Adjusted earnings per share from continuing operations to range from approximately $0.04 to $0.11.
Positive Outlook
- Net sales from continuing operations of approximately $1.40 billion to $1.45 billion.
- Includes a projected headwind of approximately $68 million from changes in foreign currency exchange rates.
- GAAP operating profit from continuing operations to range from approximately $53 million to $83 million.
- Adjusted operating profit from continuing operations to range from approximately $70 million to $100 million and includes a projected headwind of approximately $9 million from changes in foreign currency exchange rates.
- Fully diluted shares outstanding of approximately 350 million.
Challenges Ahead
- At the midpoint, this represents an approximate 15% decline as compared to prior year on a constant currency basis and a 19% decline on a reported basis.
- Charges for actions related to the Full Potential plan of approximately $17 million.
- Interest and other expenses of approximately $54 million.
- An effective tax rate of approximately 17% on both a GAAP and adjusted basis.
- GAAP earnings per share from continuing operations to range from approximately $0.00 to $0.07.