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Sep 30, 2023
Hanesbrands Q3 2023 Earnings Report
Hanesbrands drove improvement in core fundamentals while assessing business and options to unlock shareholder value.
Key Takeaways
HanesBrands Inc. announced third-quarter 2023 results, showing improvement in key performance metrics despite a challenging sales environment. The company reduced inventory, generated positive operating cash flow, and paid down debt. They also initiated an evaluation of strategic alternatives for their global Champion business.
GAAP gross margin of 31.1% decreased 260 basis points compared to prior year; adjusted gross margin of 35.5% increased 100 basis points over prior year.
Inventory reduced by 17% sequentially and 29% year-over-year.
Cash flow from operations was $155 million for the quarter and $287 million year-to-date.
Total debt reduced by $144 million in the quarter and approximately $270 million year-to-date; ended quarter with approximately $1.2 billion of liquidity.
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company provided financial outlook for the fourth-quarter and full-year 2023, reflecting assumptions of muted global consumer demand and year-over-year improvement in fourth-quarter margins.
Positive Outlook
- Net sales from continuing operations of approximately $1.36 billion for Q4 2023.
- GAAP operating profit from continuing operations of approximately $116 million for Q4 2023.
- Adjusted operating profit from continuing operations of approximately $131 million for Q4 2023.
- GAAP earnings per share from continuing operations of approximately $0.05 for Q4 2023.
- Adjusted earnings per share from continuing operations of approximately $0.09 for Q4 2023.
Challenges Ahead
- Net sales from continuing operations of approximately $5.70 billion for FY 2023, representing an approximate 9% decrease compared to prior year.
- GAAP loss per share from continuing operations of approximately $(0.22) for FY 2023.
- Adjusted earnings per share from continuing operations of approximately $0.12 for FY 2023.
- Headwind of approximately $12 million from changes in foreign currency exchange rates is expected for Q4 2023 sales.
- Headwind of approximately $65 million from changes in foreign currency exchange rates is expected for FY 2023 sales.