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Sep 28, 2024
Hanesbrands Q3 2024 Earnings Report
HanesBrands announced strong Q3 2024 results, exceeding expectations for operating profit, earnings per share, and cash flow.
Key Takeaways
HanesBrands reported net sales at $937 million, consistent with the prior year on an organic constant currency basis. The company raised its full-year and fourth-quarter outlook for operating profit, earnings per share, and operating cash flow due to year-to-date performance and strong visibility to continued margin improvement. The company is on track to pay down approximately $1 billion of debt in the second half of 2024, with approximately $870 million paid down as of the end of October.
Net sales were $937 million, consistent with prior year on an organic constant currency basis.
GAAP and Adjusted gross margins increased by approximately 530 and 525 basis points, respectively, compared to prior year.
GAAP and Adjusted operating margins increased by 255 and 435 basis points, respectively, compared to prior year.
The company is on track to pay down approximately $1 billion of debt in the second half of 2024, with approximately $870 million paid down as of the end of October.
Hanesbrands
Hanesbrands
Hanesbrands Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
For fourth-quarter 2024, HanesBrands expects net sales of approximately $900 million, GAAP operating profit of approximately $95 million, and adjusted operating profit of approximately $115 million. GAAP earnings per share are expected to be approximately $0.06, and adjusted earnings per share are expected to be approximately $0.14.
Positive Outlook
- Net sales from continuing operations of approximately $900 million, representing an approximate 2% increase compared to prior year on a reported basis.
- GAAP operating profit from continuing operations of approximately $95 million.
- Adjusted operating profit from continuing operations of approximately $115 million.
- GAAP earnings per share from continuing operations of approximately $0.06.
- Adjusted earnings per share from continuing operations of approximately $0.14.
Challenges Ahead
- Net sales includes projected headwind of approximately $4 million from changes in foreign currency exchange rates.
- Adjusted operating profit includes a projected headwind of approximately $1 million from changes in foreign currency exchange rates.
- GAAP Other expenses of approximately $24 million, which includes approximately $10 million of accelerated amortization of debt issuance costs.
- Adjusted Other expenses of approximately $14 million.
- GAAP and Adjusted Tax expense of approximately $5 million, which includes a net tax benefit primarily related to a release of certain tax reserves.