[Q1 2025 Performance Overview](index=1&type=section&id=HanesBrands%20Inc.%20Announces%20First-Quarter%202025%20Results) HanesBrands exceeded Q1 2025 expectations, reporting strong revenue, operating profit, and EPS, while reiterating full-year guidance and reducing leverage [Executive Summary](index=1&type=section&id=Executive%20Summary) HanesBrands exceeded Q1 2025 expectations for revenue, operating profit, and EPS, reiterating full-year guidance and confident in mitigating tariff impacts through cost reductions and supply chain leverage - CEO Steve Bratspies highlighted that the company exceeded expectations and is confident in its ability to mitigate tariff-related cost headwinds through cost reductions, pricing actions, and leveraging its supply chain advantages[4](index=4&type=chunk) - The company successfully completed the refinancing of all its 2026 debt maturities during the first quarter[5](index=5&type=chunk) Q1 2025 Key Performance Indicators (vs. Prior Year) | Metric | Q1 2025 Value | Change vs. Prior Year | | :--- | :--- | :--- | | **Net Sales** | $760 million | +2.1% | | **GAAP Gross Margin** | 41.7% | +170 bps | | **Adjusted Gross Margin** | 41.6% | +165 bps | | **GAAP Operating Profit** | $80 million | +126% | | **Adjusted Operating Profit** | $81 million | +61% | | **GAAP EPS** | $0.04 | +145% | | **Adjusted EPS** | $0.07 | +240% | | **Leverage Ratio** | 3.6x | -1.4x | [Q1 2025 Detailed Financial Performance](index=2&type=section&id=First-Quarter%202025%20Results) The company achieved significant profitability improvements in Q1 2025, driven by higher sales, lower input costs, and disciplined expense management, leading to a positive GAAP EPS turnaround [Revenue and Profitability](index=2&type=section&id=Revenue%20and%20Profitability) Q1 2025 net sales increased to $760 million, with significant profitability improvements driven by lower input costs, cost savings, and disciplined expense management - Net sales were **$760 million**, an increase of **2.1%** year-over-year, remaining flat on an organic constant currency basis[6](index=6&type=chunk)[10](index=10&type=chunk) - Gross margin improvement was driven by lower input costs, cost savings initiatives, and benefits from assortment management[7](index=7&type=chunk) - SG&A expenses as a percentage of net sales decreased by **400 basis points**, reflecting cost savings and disciplined expense management, despite a **50 basis point** increase in strategic brand investments[8](index=8&type=chunk)[10](index=10&type=chunk) Q1 2025 Profitability Metrics (GAAP) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | $317 million | $297 million | +6.5% | | **Gross Margin** | 41.7% | 39.9% | +170 bps | | **Operating Profit** | $80 million | $35 million | +126% | | **Operating Margin** | 10.5% | 4.8% | +575 bps | [Interest Expense, Taxes, and EPS](index=4&type=section&id=Interest%20Expense%2C%20Taxes%2C%20and%20EPS) Interest and other expenses increased due to refinancing costs, but adjusted expenses decreased, contributing to a significant turnaround in GAAP EPS to $0.04 - Interest and Other Expenses increased by **$1 million** to **$61 million**, which included **$10 million** of expenses related to the refinancing of 2026 maturities, while Adjusted Interest and Other Expenses decreased by **$9 million (15%)** to **$51 million** due to lower debt[16](index=16&type=chunk) - The effective tax rate was **26.8%**, a significant shift from **(35.4%)** in Q1 2024, though not reflective of the U.S. statutory rate due to valuation allowances[16](index=16&type=chunk) Q1 2025 Earnings Per Share (from continuing operations) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP EPS** | $0.04 | ($0.09) | | **Adjusted EPS** | $0.07 | ($0.05) | [Business Segment Performance](index=4&type=section&id=First-Quarter%202025%20Business%20Segment%20Summary) The U.S. segment saw slight sales decline but improved operating margin, while the International segment achieved constant currency sales growth and significant margin expansion [U.S. Segment](index=4&type=section&id=U.S.%20Segment) U.S. segment net sales decreased slightly due to Intimate Apparel weakness, but operating margin significantly improved to 20.9% from cost savings and favorable mix - Net sales decreased **1.4%** to **$536.2 million**, as growth in Basics and Active businesses was more than offset by headwinds in the Intimate Apparel business[15](index=15&type=chunk)[51](index=51&type=chunk) - Operating margin increased by **285 basis points** to **20.9%**, driven by cost savings initiatives, lower input costs, and favorable product mix[15](index=15&type=chunk)[51](index=51&type=chunk) [International Segment](index=5&type=section&id=International%20Segment) International segment sales grew 4% constant currency, driven by Australia and Asia, with operating margin expanding significantly to 11.5% from favorable mix and cost savings - Net sales decreased **2.2%** to **$195.5 million** on a reported basis, which included a **$12 million** headwind from foreign exchange, but increased **4%** on a constant currency basis[15](index=15&type=chunk)[51](index=51&type=chunk) - Sales grew in Australia and Asia and were consistent with the prior year in the Americas on a constant currency basis[17](index=17&type=chunk) - Operating margin increased by **310 basis points** to **11.5%**, driven by favorable mix, cost savings, and lower input costs[17](index=17&type=chunk)[51](index=51&type=chunk) [Financial Position and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company strengthened its balance sheet by reducing leverage and inventory, though Q1 2025 cash flow from operations was negative due to seasonal inventory build [Balance Sheet and Cash Flow Summary](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) The company strengthened its balance sheet by reducing leverage to 3.6x and inventory by 5%, despite negative Q1 2025 operating cash flow due to seasonal build - The leverage ratio declined to **3.6 times** net debt-to-adjusted EBITDA, compared to **5.0 times** in the prior year[20](index=20&type=chunk) - Inventory decreased by **5% ($54 million)** year-over-year to **$977 million**, driven by better inventory management capabilities and lower input costs[20](index=20&type=chunk) - Cash Flow from Operations was **($108) million**, a decrease from **$26 million** in Q1 2024, attributed to a seasonal inventory build ahead of back-to-school programs[20](index=20&type=chunk) - Free Cash Flow for the quarter was **($119) million**, compared to **$6 million** in the prior year[20](index=20&type=chunk) [Financial Outlook](index=5&type=section&id=Second-Quarter%20and%20Full-Year%202025%20Financial%20Outlook) HanesBrands provided its full-year 2025 outlook, anticipating consistent net sales and positive adjusted EPS, alongside a stable second-quarter forecast [Full-Year 2025 Outlook](index=5&type=section&id=Full-Year%202025%20Outlook) Full-year 2025 outlook anticipates net sales consistent with prior year, adjusted EPS between $0.51 and $0.55, and free cash flow of approximately $300 million Full-Year 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | **Net Sales** | $3.47 billion to $3.52 billion | | **GAAP Operating Profit** | $425 million to $440 million | | **Adjusted Operating Profit** | $450 million to $465 million | | **GAAP EPS** | $0.42 to $0.46 | | **Adjusted EPS** | $0.51 to $0.55 | | **Cash Flow from Operations** | ~$350 million | | **Free Cash Flow** | ~$300 million | [Second-Quarter 2025 Outlook](index=6&type=section&id=Second-Quarter%202025%20Outlook) Second-quarter 2025 outlook projects net sales of approximately $970 million, adjusted operating profit around $136 million, and adjusted EPS of approximately $0.18 Second-Quarter 2025 Financial Outlook | Metric | Guidance | | :--- | :--- | | **Net Sales** | ~$970 million | | **GAAP Operating Profit** | ~$129 million | | **Adjusted Operating Profit** | ~$136 million | | **GAAP EPS** | ~$0.16 | | **Adjusted EPS** | ~$0.18 | [Appendix: Financial Statements and Reconciliations](index=7&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This appendix provides detailed explanations of non-GAAP measures, unaudited consolidated financial statements, and comprehensive reconciliations of GAAP to non-GAAP figures [Note on Non-GAAP Measures](index=7&type=section&id=Note%20on%20Adjusted%20Measures%20and%20Reconciliation%20to%20GAAP%20Measures) This section explains HanesBrands' non-GAAP financial measures, their purpose in analyzing core operating performance, and the methodology for constant currency and organic sales - The company uses non-GAAP measures to provide supplemental information for analyzing operating performance, excluding costs from material, stand-alone initiatives like supply chain restructuring[31](index=31&type=chunk) - Adjustments in 2025 and 2024 include charges for supply chain restructuring, headcount actions, professional services, loss on debt extinguishment, and related tax effects[29](index=29&type=chunk) - Constant-currency information is presented to assess business performance excluding the impact of foreign currency translation[35](index=35&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including the Statement of Operations, Balance Sheet, and Cash Flows Condensed Consolidated Statement of Operations (Unaudited, in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $760,148 | $744,675 | | Gross profit | $316,700 | $297,433 | | Operating profit | $79,908 | $35,414 | | Income (loss) from continuing operations | $14,146 | $(32,802) | | Net loss | $(9,456) | $(39,122) | | Diluted EPS from continuing operations | $0.04 | $(0.09) | Condensed Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Line Item | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $175,940 | $176,003 | | Inventories | $977,302 | $1,031,655 | | Total assets | $3,821,230 | $5,589,676 | | Long-term debt | $2,322,065 | $3,237,419 | | Total liabilities | $3,777,784 | $5,251,502 | | Total stockholders' equity | $43,446 | $338,174 | Condensed Consolidated Statement of Cash Flows (Unaudited, in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $(108,183) | $26,171 | | Net cash from investing activities | $17,576 | $(20,229) | | Net cash from financing activities | $51,055 | $(7,459) | [Reconciliation of GAAP to Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Select%20GAAP%20Measures%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP measures, outlining adjustments for restructuring, professional services, and debt extinguishment, along with leverage ratio and free cash flow calculations Q1 2025 Reconciliation of GAAP to Adjusted Operating Profit (in thousands) | Line Item | Amount | | :--- | :--- | | **Operating profit, as reported under GAAP** | **$79,908** | | Professional services | $457 | | Headcount actions and related severance | $209 | | Supply chain restructuring and consolidation | $(60) | | Other | $503 | | **Operating profit, as adjusted** | **$81,017** | Q1 2025 Reconciliation of GAAP to Adjusted Diluted EPS | Line Item | Amount | | :--- | :--- | | **Diluted EPS, as reported under GAAP** | **$0.04** | | Loss on extinguishment of debt | $0.03 | | Other adjustments (rounding) | $0.00 | | **Diluted EPS, as adjusted** | **$0.07** | Leverage Ratio Calculation (Net debt/EBITDA, as adjusted) | Metric | LTM March 29, 2025 | LTM March 30, 2024 | | :--- | :--- | :--- | | Total EBITDA, as adjusted | $613,375 | $630,734 | | Net debt | $2,196,520 | $3,128,827 | | **Net debt/EBITDA, as adjusted** | **3.6x** | **5.0x** |

Core Viewpoint - Hanesbrands Inc. (HBI) is expected to report a significant decline in revenues for the first quarter of 2025, with a consensus estimate of $765.8 million, reflecting a decrease of 33.8% compared to the same quarter last year [1] Revenue and Earnings Estimates - The consensus estimate for first-quarter earnings remains unchanged at 3 cents per share, a notable improvement from a loss of 2 cents per share in the prior year [2] - For the first quarter of 2025, Hanesbrands projects net sales from continuing operations of $750 million, which includes a $15 million impact from foreign currency exchange rates, indicating about a 1% increase year-over-year on a reported basis [3] - The company anticipates a loss per share from continuing operations of 5 cents, while adjusted earnings per share are estimated at 2 cents [6] Operational Performance - Hanesbrands continues to implement a consumer-centric strategy that has enhanced its overall performance, gaining market share through targeted product innovation and expanding its retail footprint [2] - The company is focused on maintaining healthy profit margins and generating strong cash flow through strategic brand-building, data-driven insights, inventory optimization, and disciplined SKU management [4] Profitability Outlook - For the first quarter of 2025, Hanesbrands projects an operating profit from continuing operations of approximately $55 million, with adjusted operating profit expected to reach $65 million, factoring in an estimated $1 million impact from unfavorable foreign currency exchange rates [5]

Core Viewpoint - Hanesbrands Inc. (HBI) is pursuing long-term growth through cost-saving initiatives, supply-chain optimization, and debt reduction, which has positively impacted its stock performance [1][11]. Group 1: Strategic Initiatives - The company is focusing on operational efficiency and financial stability through cost-saving initiatives, including the sale of the Global Champion business, which aims to streamline operations and reduce fixed costs [5]. - By the end of Q4 2024, Hanesbrands generated $264 million in operating cash flow and paid down over $1 billion in debt, significantly reducing its leverage [5]. - HBI is modernizing its technology platform for improved analytics and forecasting, optimizing its supply chain for better efficiency, and cutting non-revenue-generating SG&A expenses [6]. Group 2: Market Positioning - Hanesbrands has strengthened relationships with key retail partners, enhancing brand visibility and accessibility, particularly in mass retail and e-commerce [7]. - The company is leveraging a global go-to-market strategy to capture demand in growing international markets, especially in Mexico and Australia, where sales momentum is improving [7]. - Advanced AI-driven analytics are being utilized to enhance demand forecasting, inventory optimization, and personalized marketing strategies, expected to improve efficiency and drive revenue growth [8]. Group 3: Financial Outlook - Despite a challenging macroeconomic environment, Hanesbrands expects net sales for 2025 to be between $3.47 billion and $3.52 billion, remaining flat year over year [9]. - The company anticipates a $60 million impact from currency fluctuations, with minimal growth expected in the U.S. market [9]. - In Q4 2024, foreign exchange fluctuations created a 110-basis-point headwind to sales, highlighting the risks associated with its international presence [10].

Group 1 - The article emphasizes a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics rather than market-driven price actions [1] - Quipus Capital's approach suggests that most recommendations will be holds, indicating a cautious stance in a bullish market, with only a small fraction of companies deemed suitable for purchase at any given time [1] - The hold articles are intended to provide valuable information for future investors and introduce a healthy skepticism towards the prevailing market optimism [1] Group 2 - The author discloses no current stock or derivative positions in the companies mentioned, nor any plans to initiate such positions in the near future, indicating an unbiased perspective [2] - The article reflects the author's personal opinions and is not influenced by any compensation from companies discussed, ensuring independence in analysis [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole, highlighting the diversity of opinions among its analysts [3]

Business Operations - Hanesbrands operates a portfolio of recognized apparel brands, reaching nine out of ten U.S. households and holding the No. 1 position in innerwear sales[13] - The company produced or sourced nearly 75% of its apparel units through its own plants or dedicated contractors, enhancing cost efficiency and scalability[15] - The company plans to exit the U.S.-based outlet store business and the global Champion business, with the sale of related assets expected to be completed by September 30, 2024[22] - The company aims to drive transformational growth by expanding its core business and exploring new markets and opportunities[20] - The company’s business strategy focuses on simplifying its portfolio, improving operations, and delivering measurable results to enhance sales and margins[19] Financial Performance - In 2024, the U.S. segment generated net sales of $2.6 billion, accounting for approximately 74% of total net sales[34] - The International segment reported net sales of $908 million, representing about 26% of total net sales[36] - Walmart, Amazon, and Target were the largest customers, contributing 24%, 13%, and 11% of total net sales, respectively[38] - Sales to mass merchants in the U.S. accounted for approximately 38% of total net sales in 2024[39] - Sales to pure play e-commerce customers in the U.S. represented about 13% of total net sales[40] - Brand investment, including advertising and promotion expenses, was approximately $174 million in 2024, representing 5.0% of total net sales, compared to $126 million or 3.5% in 2023[55] Sustainability Initiatives - Hanesbrands achieved over $31 million in cost savings from sustainability initiatives since 2020, with significant progress made in 2024[17] - Hanesbrands has set 2030 targets to reduce carbon emissions, surpassing its goals seven years ahead of schedule[16] - The company achieved a 51.5% reduction in Scope 1 and 2 emissions and a 27.7% reduction in Scope 3 emissions against a 2019 baseline, exceeding its science-based greenhouse gas goals[69] - The company is committed to sustainability, with updated sustainability goals expected to be announced in the second quarter of 2025[68] Product Innovation - In 2023, Hanesbrands launched the M by Maidenform collection, targeting younger consumers, and received strong initial consumer response[30] - The Hanes brand introduced the Hanes Originals SuperSoft collection in 2024, reinforcing its innovation leadership in comfort-driven apparel[28] - In 2024, the company filed 20 patent applications and had 23 patents issued globally, focusing on innovative fabric platforms and product design innovations[55] - The Total Support Pouch is sold in eight countries, while Hanes Originals and M by Maidenform are sold in eight and five countries, respectively[55] Workforce and Employment - As of December 28, 2024, the company employed approximately 41,000 employees, with 93% located outside the United States[70] - Approximately 36% of the global workforce is male and 64% is female, with 18% representation of people of color at senior manager levels in the U.S.[72] - The company's OSHA recordable rate improved to 0.29 in 2024 from 0.33 in the prior year, indicating enhanced workplace safety[71] - In 2024, associates completed over 11,000 hours of micro-learning modules as part of the company's talent development initiatives[73] - The company plans to launch another global engagement survey in 2025, following positive results from the 2023 survey[74] Manufacturing and Distribution - The company operates 20 manufacturing facilities, with most cutting and sewing operations located in Asia, Central America, and the Caribbean Basin[45] - As of December 28, 2024, the company distributed products from 26 distribution centers, including 9 in the U.S. and 17 internationally[48] - The company reduced the number of SKUs across its portfolio by nearly 40% since 2020[50] - Approximately 75% of apparel units sold in 2024 were from finished goods manufactured through owned and third-party facilities[44] - Approximately 79% of employees are employed in large-scale supply chain facilities primarily located in Central America, the Caribbean Basin, and Asia[70] Market Position - Bonds, Australia's largest innerwear brand, operates over 140 retail stores and has a thriving e-commerce business[29] - The International segment's largest markets include Australia, Mexico, Canada, and Latin America[36] - The company is a market leader in men's underwear and intimate apparel in the U.S. under the Hanes and Polo Ralph Lauren brands[34]

Financial Data and Key Metrics Changes - Hanesbrands reported a 4.5% increase in net sales year-over-year, reaching $888 million, with a 175 basis point benefit from transition services revenue and a 110 basis point headwind from foreign exchange rates [34] - Gross margin improved by 400 basis points to 44.1%, while operating margin increased by 300 basis points to 14.2% [38] - Earnings per share (EPS) rose by 240% to $0.17, driven by higher profit margins and a reduction in interest expense [39] Business Line Data and Key Metrics Changes - In the U.S., net sales increased by 3% year-over-year, with growth driven by innovation and increased brand investments, particularly in socks, women's, and scrub businesses [34][35] - The International segment saw a 6% increase in net sales on a constant currency basis, with growth in each region, particularly in Australia [35] - The other segment's year-over-year increase in net sales was attributed to short-term transition service agreements related to the Champion business [36] Market Data and Key Metrics Changes - The Australian business experienced a 4% growth in the fourth quarter, driven by better inventory management and strong innovation [35][107] - The company expects low-single digit growth in international markets on a constant currency basis, with no inventory fill impacting the growth [104] Company Strategy and Development Direction - Hanesbrands is transitioning from a global holding company to a global operating company, focusing on consumer-centric innovation and streamlining operations [16][18] - The company aims to expand margins to over 15% and generate more than $400 million in annual operating cash flow [21] - The strategy includes leveraging competitive strengths, driving market share gains, and focusing on new revenue streams, such as the Printwear channel [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive organic constant currency sales growth in 2025, despite a challenging consumer environment [51] - The company anticipates further margin expansion in 2025, supported by cost savings initiatives and improved input cost visibility [41][59] - Management highlighted the importance of a smooth leadership transition, emphasizing the company's strong foundation and growth potential [66][27] Other Important Information - The Champion Japan business has been reclassified to discontinued operations, impacting comparability with previous guidance [4][5] - The company paid down over $1 billion in debt during the year, reducing leverage by nearly 2 turns [15][40] Q&A Session Summary Question: Confidence in driving positive sales in 2025 and revenue opportunities - Management expressed confidence in achieving 1% organic constant currency growth, driven by innovation and brand investments [51][52] Question: Visibility and control over future margin expansion - Management indicated strong visibility to cost savings and expected another step up in operating margins in 2025 [55][59] Question: Announcement of planned departure and succession plan - Management clarified that the decision for succession was part of a long-term plan, with a strong foundation for the transition [64][66] Question: Eliminating stranded costs associated with Champion - Management stated that stranded costs would be largely eliminated in 2025, contributing to margin expansion [72][73] Question: Guidance breakdown for U.S. vs. international business - Management expects flat growth in the U.S. and low-single digit growth internationally, with no major shifts in ordering patterns [77][78] Question: Gross margin cadence throughout the year - Management anticipates a stronger gross margin in the first half of the year, with some stabilization in the back half [81][84] Question: Cash flow build for the year - Management provided insights on operating cash flow expectations, highlighting profit growth and lower cash interest as key contributors [96][100] Question: Expectations for international revenue outlook - Management emphasized that growth in Australia is driven by volume and consumer pull, with no inventory fill impacting results [105][107] Question: Impact of potential retaliatory tariffs on sales into Mexico and Canada - Management confirmed no impact from tariffs as products are not sold from the U.S. into those markets [115][117] Question: Consumer trends and channel shifts - Management noted that business performance aligns with macro channel trends, with strong relationships across various retail channels [123]

Hanesbrands Inc. (HBI) has reported fourth-quarter 2024 results, with the top line increasing year over year and missing the Zacks Consensus Estimate. The bottom line improved from the year-ago quarter’s reported figure and surpassed the consensus mark. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company posted adjusted earnings from continuing operations of 17 cents per share, surpassing the Zacks Consensus Estimate of earnings of 14 cents. The metric increased from 5 cents i ...

Financial Data and Key Metrics Changes - Hanesbrands reported a 4% year-over-year growth in sales for the fourth quarter, with net sales increasing 4.5% to $888 million [34][14] - Gross margin improved by 580 basis points to 41.4%, while operating margin expanded by 390 basis points to 11.8% [14][15] - Earnings per share (EPS) increased by 670% [15] - The company paid down over $1 billion in debt, reducing leverage by nearly 2 turns [15][40] Business Line Data and Key Metrics Changes - In the U.S., net sales increased by 3% year-over-year, driven by innovation and increased brand investments [34][35] - The International segment saw a 6% increase in net sales on a constant currency basis, with growth in each region [35] - The Champion Japan business has been reclassified to discontinued operations, affecting comparability with previous guidance [4][5] Market Data and Key Metrics Changes - The Australian business experienced growth driven by better inventory management and strong innovation [35][106] - The company noted no significant shifts in ordering patterns among major retail accounts, maintaining strong relationships across channels [78][123] Company Strategy and Development Direction - Hanesbrands is transitioning from a global holding company to a global operating company, focusing on consumer-centric innovation and streamlined operations [16][18] - The company aims to expand margins to over 15% and generate more than $400 million in annual operating cash flow [21][23] - The strategy includes leveraging competitive strengths and focusing on new revenue streams, particularly in the Printwear channel [22][111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive organic constant currency sales growth in 2025, despite a challenging consumer environment [50][51] - The company anticipates further margin expansion in 2025, driven by cost savings and improved operational efficiencies [22][39] - Management highlighted a strong foundation and momentum entering 2025, with a commitment to shareholder value creation [13][24] Other Important Information - The company has initiated a leadership succession plan, with the current CEO planning to step down after five years [24][66] - Management emphasized the importance of transparency during the transition and the strength of the current leadership team [66][67] Q&A Session Summary Question: Confidence in driving positive sales in 2025 and revenue opportunities - Management expressed confidence in achieving 1% organic constant currency growth, supported by innovation and brand investments [50][51] Question: Visibility and control over future margin expansion - Management indicated strong visibility to cost and savings, expecting another step up in operating margins in 2025 [54][59] Question: Elimination of stranded costs associated with Champion - Management stated that stranded costs would be largely eliminated by the end of 2025, contributing to margin expansion [72][73] Question: Guidance breakdown for U.S. vs. international business - Management expects flat growth in the U.S. and low-single-digit growth internationally, with no major shifts in ordering patterns [77][78] Question: Gross margin cadence throughout the year - Management anticipates a stronger gross margin in the first half of the year, with some stabilization expected in the back half [81][84] Question: Cash flow build for the year - Management outlined factors contributing to the expected $350 million in operating cash flow, including profit growth and lower cash interest [95][100] Question: International revenue outlook and inventory position - Management clarified that growth in Australia is driven by volume rather than inventory fill, with a focus on consumer engagement and innovation [105][106] Question: Impact of potential retaliatory tariffs on sales into Mexico and Canada - Management confirmed no impact from tariffs, as products are not sold from the U.S. into those countries [115][117] Question: Consumer trends and channel shifts - Management noted that the business follows macro channel trends closely, with strong relationships across various retail channels [123]

Historical Financial Results Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses Fiscal Year 2022 thru Fiscal Year 2024 Exhibit 99.3 Supplemental Information February 13, 2025 1 Table of Contents In the second quarter of 2024, the Company reached the decision to exit the U.S.-based outlet store business and the global Champion business, excluding the Champion Japan business, and began to separately report the results ...

Hanesbrands (HBI) is likely to report fourth-quarter 2024 earnings on Feb. 13. The Zacks Consensus Estimate for quarterly revenues is pegged at $899.3 million. The consensus mark for earnings has remained unchanged in the past 30 days and is pegged at 14 cents per share. HBI delivered a trailing four-quarter earnings surprise of 21.6%, on average. In the last reported quarter, the company reported an earnings surprise of 36.4%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Things to ...