HanesBrands (HBI) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this underwear, T-shirt and sock maker would post earnings of $0.09 per share when it actually produced earnings of $0.03, delivering a surprise of -66.67%.Over the last four quarters ...

Financial Performance - Net sales for Q1 2024 were $1.16 billion, a decrease of approximately 17% year-over-year, impacted by the U.S. Sheer Hosiery divestiture and unfavorable foreign exchange rates[6]. - Adjusted operating profit for Q1 2024 was $84 million, exceeding expectations and representing a 32% increase compared to the prior year[6]. - Net sales for the quarter ended March 30, 2024, were approximately $1.156 billion, representing a 16.8% decrease compared to $1.389 billion in the prior year[35]. - The company reported a net loss of approximately $39.1 million for the quarter, compared to a net loss of $34.4 million in the prior year[35]. - Total operating profit for the quarter was $52,106, down 9.1% from $57,319 in the prior year[43]. - The net loss for the quarter ended March 30, 2024, was $39.1 million, compared to a net loss of $34.4 million in the same quarter of 2023[52]. - Free cash flow for the period was approximately $335 million[18]. - Free cash flow for the quarter ended March 30, 2024, was $5,914 thousand, a decrease of 70.8% compared to $20,293 thousand for the same quarter in 2023[59]. Guidance and Projections - For Q2 2024, the company expects net sales between $1.335 billion and $1.375 billion, with GAAP operating profit guidance of $96 million to $111 million[4]. - Full-year 2024 guidance includes net sales of approximately $5.35 billion to $5.47 billion, reflecting a projected 4% decrease compared to the prior year[15]. - The company anticipates paying down more than $300 million of debt in 2024[4]. - Adjusted operating profit for the same quarter is projected to be between $115 million and $130 million, with a headwind of approximately $3 million from foreign currency exchange rates[18]. - Operating profit outlook for the quarter ending June 29, 2024, is projected to be between $96,000 thousand and $111,000 thousand, with an adjusted outlook of $115,000 thousand to $130,000 thousand[61]. - Diluted earnings per share outlook for the quarter ending June 29, 2024, is estimated to be between $0.02 and $0.06 under GAAP, and between $0.07 and $0.11 when adjusted[61]. - The company expects cash flow from operations for the year ending December 28, 2024, to be approximately $400,000 thousand[61]. - Capital expenditures outlook for the year ending December 28, 2024, is projected at $65,000 thousand[61]. - Free cash flow outlook for the year ending December 28, 2024, is estimated to be $335,000 thousand[61]. - The company is unable to provide financial performance projections beyond 2024 due to uncertainties regarding net sales and operating profit[62]. Cost and Margin Analysis - GAAP gross margin was 39.9%, an increase of 750 basis points year-over-year, driven by lower input costs and cost savings initiatives[6]. - Gross profit margin increased to 39.9% for the quarter, up from 32.4% in the previous year[35]. - Selling, general and administrative expenses for the quarter ended March 30, 2024, were $408.8 million, or 35.4% of net sales, up from $392.4 million and 28.2% in the prior year[51]. - The Innerwear segment operating margin improved to 21.9%, up from 13.1% in the previous year, reflecting a 878 basis point increase[43]. Inventory and Debt Management - The company reduced inventory by 28% year-over-year, resulting in $26 million of cash flow from operations[6]. - The company's net debt as of March 30, 2024, was $3.1 billion, compared to $3.6 billion as of April 1, 2023[56]. - The leverage ratio improved to 5.0 times net debt-to-adjusted EBITDA, down from 5.4 times in Q1 2023[12]. - The leverage ratio, defined as net debt/EBITDA, as adjusted, was 5.0 for the last twelve months ended March 30, 2024, compared to 5.4 for the same period ended April 1, 2023[56]. Segment Performance - Innerwear segment net sales decreased by 8.4% to $506,843, while Activewear segment net sales fell by 30.9% to $217,749[43]. - International sales decreased by 12% on a reported basis, with growth in Japan, China, and Latin America offset by declines in Europe and Australia[10]. - Global Champion sales excluding C9 Champion decreased approximately 26% in the first quarter of 2024 compared to the first quarter of 2023, with a $3 million unfavorable foreign currency impact[53]. Strategic Initiatives - The company is implementing the Full Potential transformation plan and the global Champion performance plan, incurring pretax charges of approximately $19 million related to these initiatives[18]. - The company incurred approximately $17 million in charges related to the Global Champion performance plan for the quarter ended March 30, 2024[50]. - HanesBrands is focusing on sustainability with aggressive goals set for 2030 to improve lives and protect the planet[33]. Other Financial Metrics - The fully diluted shares outstanding were approximately 354 million[18]. - Cash and cash equivalents at the end of the period were $191,216, down from $213,209 at the end of the previous year[47]. - Total assets decreased to $5,589,676 from $6,432,680 year-over-year[45]. - The company incurred restructuring and other action-related charges of $31,721, an increase of 418.2% compared to $6,121 in the prior year[43].

Hanesbrands Inc. (HBI) is set to report first-quarter 2024 earnings on Mar 9. The consensus mark is pegged at a loss of 6 cents per share, unchanged in the past 30 days. It incurred a loss of 6 cents in the prior-year quarter.The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, suggesting a decrease of 15.6% from the year-ago quarter’s reported figure.HBI has a trailing four-quarter negative earnings surprise of 6.4%, on average. In the last reported quarter, the company posted a negative ea ...

The upcoming report from HanesBrands (HBI) is expected to reveal quarterly loss of $0.06 per share, indicating no change from the year-ago quarter compared to the year-ago period. Analysts forecast revenues of $1.17 billion, representing a decrease of 15.6% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's ear ...

Hanesbrands Inc. (HBI) is battling with greater-than-anticipated challenges in the sales environment, which is hurting its performance. The basic apparel company is battling weakness in the Activewear segment. Weakness in the International unit is also concerning.Hanesbrands’ reignite Innerwear strategy continues to gain traction. Also, the company’s ongoing cost curtailment efforts are offering respite.Let’s delve deeper.Volatile Sales EnvironmentHanesbrands is operating amid a challenging sales environmen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-32891 Hanesbrands Inc. (Exact name of registrant as specified in its charter) Maryland 20-3552316 (State of incorporation) (I.R.S. employer ide ...

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Hanesbrands Inc.'s unaudited condensed consolidated financial statements for Q3 2023 and 2022, covering operations, balance sheets, and cash flows, with detailed accounting notes [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of **$38.8 million** for Q3 2023 and **$95.7 million** for the nine-month period, driven by lower sales and higher interest expenses Q3 2023 vs Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,511,306 | $1,670,741 | -9.5% | | Gross Profit | $470,311 | $562,852 | -16.4% | | Operating Profit | $65,962 | $141,444 | -53.4% | | Net Income (Loss) | $(38,799) | $80,101 | -148.4% | | Diluted EPS | $(0.11) | $0.23 | -147.8% | Nine Months 2023 vs 2022 Performance (in thousands) | Metric | Nine Months 2023 | Nine Months 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4,339,696 | $4,760,364 | -8.8% | | Gross Profit | $1,402,741 | $1,719,131 | -18.4% | | Operating Profit | $192,685 | $459,210 | -58.0% | | Net Income (Loss) | $(95,667) | $290,904 | -132.9% | | Diluted EPS | $(0.27) | $0.83 | -132.5% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$5.91 billion** as of September 30, 2023, primarily due to reduced inventories, while total liabilities and stockholders' equity also declined Key Balance Sheet Items (in thousands) | Account | Sep 30, 2023 | Oct 1, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $191,091 | $253,131 | | Inventories | $1,516,779 | $2,136,314 | | Total Assets | $5,913,288 | $7,099,281 | | Long-term debt | $3,310,256 | $3,655,889 | | Total Liabilities | $5,639,252 | $6,424,397 | | Total Stockholders' Equity | $274,036 | $674,884 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved to **$287.3 million** for the nine months ended September 30, 2023, primarily driven by inventory reduction efforts - A significant improvement in operating cash flow was driven by a **$444.6 million** positive change from inventories, compared to a **$612.5 million** negative impact in the prior year, reflecting successful inventory reduction efforts[27](index=27&type=chunk) Cash Flow Summary (Nine Months Ended, in thousands) | Activity | Sep 30, 2023 | Oct 1, 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $287,344 | $(491,682) | | Net cash from investing activities | $(15,377) | $(179,336) | | Net cash from financing activities | $(307,771) | $435,248 | | Change in cash and cash equivalents | $(47,322) | $(307,498) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain financial statements, covering accounting policies, business divestitures, debt refinancing, segment performance, and restructuring charges, including the U.S. Sheer Hosiery sale and Champion plan - The company completed the sale of its U.S. Sheer Hosiery business on September 29, 2023, for **$3.3 million**, recognizing a loss of **$3.6 million** for the nine-month period[57](index=57&type=chunk) - In Q3 2023, the company recognized a benefit of **$17.8 million** from business interruption insurance proceeds related to the May 2022 ransomware attack[39](index=39&type=chunk) - The annual goodwill impairment analysis indicated that the U.S. Activewear, Champion Europe, and Australia reporting units are at a higher risk for future impairment, with fair values exceeding carrying values by less than **10-15%**. The combined goodwill for these units is approximately **$677.7 million**[43](index=43&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting a **10%** Q3 net sales decrease driven by Activewear and International segments, alongside strategic initiatives like the Champion business review and debt refinancing - The company's Board of Directors is evaluating strategic alternatives for the global Champion business, which could include a potential sale or other strategic transaction[147](index=147&type=chunk) - The company's capital allocation strategy has shifted to focus all free cash flow on reducing debt to a target net debt-to-adjusted EBITDA ratio of no greater than **two to three times**[152](index=152&type=chunk) Full Year 2023 Guidance | Metric | Estimated Value | | :--- | :--- | | Net Sales | ~$5.70 billion | | Operating Profit | ~$309 million | | Diluted Loss Per Share | ~$(0.22) | | Cash Flow from Operations | ~$500 million | [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q3 2023 net sales fell **10%** to **$1.51 billion**, with operating profit dropping **53%** to **$66 million**, primarily due to declines in Activewear and International segments amid challenging consumer environments - Q3 2023 operating margin fell to **4.4%** from **8.5%** in Q3 2022, impacted by unfavorable sales mix, cost inflation, and **$77 million** in restructuring charges related to the global Champion performance plan[177](index=177&type=chunk) - Activewear segment sales decreased **17%** in Q3 2023 due to a slowdown in the U.S. activewear category and strategic actions to reposition the Champion brand, leading to a significant operating margin decline from **11.6%** to **6.5%**[184](index=184&type=chunk)[185](index=185&type=chunk) - Innerwear segment sales remained relatively flat, decreasing by **0.4%** in Q3 2023. However, its operating margin improved to **17.5%** from **16.0%** a year ago, benefiting from lapping prior year manufacturing time-out costs[182](index=182&type=chunk)[183](index=183&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) Total available liquidity was approximately **$1.16 billion** as of September 30, 2023, with the company prioritizing debt reduction through refinancing and credit facility amendments for greater financial flexibility - The company amended its Senior Secured Credit Facility in November 2023 to modify financial covenants and provide greater strategic flexibility[221](index=221&type=chunk) Available Liquidity as of September 30, 2023 (in thousands) | Source | Available Liquidity | | :--- | :--- | | Revolving Loan Facility | $935,913 | | Accounts Receivable Securitization Facility | $391 | | Other international credit facilities | $35,994 | | Cash and cash equivalents | $191,091 | | **Total Liquidity** | **$1,163,389** | - The Hanesbrands Board of Directors eliminated the quarterly cash dividend to prioritize using free cash flow for debt reduction[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No significant changes in market risk exposures were reported since the Annual Report on Form 10-K for the year ended December 31, 2022 - There were no significant changes in market risk exposures since the last annual report[240](index=240&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2023[241](index=241&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[242](index=242&type=chunk) PART II [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings were reported in Q3 2023, and existing legal actions are not expected to have a material adverse effect on the company - No new material legal proceedings were reported in Q3 2023, and existing proceedings are not expected to have a material adverse effect[244](index=244&type=chunk)[245](index=245&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor was introduced concerning the uncertain outcome of the strategic evaluation for the global Champion business, which may not result in a transaction or achieve intended goals - A new risk factor was introduced related to the strategic review of the global Champion business, announced on September 19, 2023. The outcome is uncertain and may not result in a completed transaction or achieve intended goals[247](index=247&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[248](index=248&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[249](index=249&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or officer trading plans under Rule 10b5-1 were adopted, modified, or terminated during the third quarter of 2023 - No director or officer trading plans under Rule 10b5-1 were adopted, modified, or terminated during the quarter[251](index=251&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and XBRL data files - Exhibits filed include CEO and CFO certifications (**31.1, 31.2, 32.1, 32.2**) and XBRL interactive data files[253](index=253&type=chunk)

Hanesbrands Inc. (NYSE:HBI) Q1 2023 Earnings Conference Call May 3, 2023 8:30 AM ET TC Robillard - Vice President, Investor Relations Steve Bratspies - Chief Executive Officer Scott Lewis - Chief Accounting Officer and Interim Chief Financial Officer Jay Sole - UBS Ike Boruchow - Wells Fargo Paul Kearney - Barclays Tom Nikic - Wedbush Securities Jim Duffy - Stifel Carla Casella - JPMorgan Good day and thank you for standing by. Welcome to the Hanesbrands First Quarter 2023 Earnings Conference Call. At this ...

Sales Performance - In 2022, net sales from the Innerwear segment were $2.4 billion, representing approximately 39% of total net sales[34]. - The Activewear segment generated net sales of $1.6 billion in 2022, accounting for about 25% of total net sales[36]. - The International segment reported net sales of $1.9 billion in 2022, which is approximately 31% of total net sales[37]. - Approximately 69% of total net sales were generated in the United States in 2022[39]. - Sales to mid-tier and department stores in the United States accounted for approximately 8% of total net sales in 2022[41]. - Consumer-directed sales in the United States represented about 17% of total net sales in 2022[42]. - Sales to other customers in the United States made up approximately 25% of total net sales in 2022[43]. - Internationally, 56% of net sales were wholesale sales to retailers, while 44% were consumer-directed sales through owned retail stores and e-commerce sites[44]. - The company’s top 10 customers accounted for approximately 45% of total net sales in 2022, with Walmart alone representing 16%[102]. - In 2022, net sales from the International segment were $1.9 billion, representing approximately 31% of total net sales[130]. Strategic Initiatives - The company completed the sale of its European Innerwear business on March 5, 2022, as part of its Full Potential plan[15]. - In June 2022, the company purchased the Champion trademark for footwear for $103 million, enhancing its brand portfolio[17]. - The company aims to grow the Champion brand globally and enhance e-commerce excellence as part of its multi-year growth strategy[14]. - The company is implementing a significant number of strategic initiatives focused on building a consumer-centric company and enhancing capabilities[79]. - The company is focusing on growing the Champion brand globally and enhancing e-commerce capabilities as part of its Full Potential plan[208]. Sustainability Goals - The company has established 2025/2030 global sustainability goals to enhance transparency and track progress on key metrics[21]. - By 2030, the company plans to reduce greenhouse gas emissions by 50% and indirect emissions by 30%[70]. - The company aims to improve the lives of at least 10 million people through health and wellness programs and diversity initiatives by 2030[73]. - The company has set a goal to eliminate all single-use plastics and reduce packaging weight by 25% by 2030[73]. - The company earned an A- score in the 2022 CDP Climate Change Report, placing it in the top 11% of nearly 15,000 rated companies[70]. Operational Insights - The company operates its own manufacturing facilities, with over 60% of apparel units sold produced in-house or by dedicated contractors[19]. - The company operates 30 manufacturing facilities, with most cutting and sewing operations located in Asia, Central America, and the Caribbean Basin[46]. - The company distributed products from 45 distribution centers as of December 31, 2022, including 16 in the United States[49]. - The company has approximately 51,000 employees, with over 88% located outside the United States[71]. - The company’s largest manufacturing facility is approximately 1.1 million square feet located in San Juan Opico, El Salvador[176]. Financial Performance - Advertising and promotion expenses were approximately $209 million in both 2022 and 2021, representing 3.4% of total net sales in 2022[56]. - The company has $1 billion in a revolving loan facility and $1 billion in a term loan facility, along with $900 million in senior notes due 2024 and 2026[112]. - The pension plans experienced a loss of approximately 10% in 2022, with a funded status of about 96% as of December 1, 2022[125]. - The company holds approximately $1.1 billion in goodwill and $1.3 billion in intangible assets, representing 36% of total assets[124]. - The company estimates net sales for 2023 to be approximately $6.05 billion to $6.20 billion, with an unfavorable foreign exchange impact of about $42 million[198]. Market Challenges - The basic apparel market is highly competitive, with significant competition from brands like Fruit of the Loom, Nike, and Adidas[57]. - The company operates in a highly competitive market, facing challenges from both domestic and foreign competitors, as well as online retail[80]. - Economic uncertainties, including inflation and geopolitical conflicts, may adversely affect consumer discretionary spending and sales[111]. - Pricing pressure from competition and consumer demand changes may negatively impact margins and profitability[126]. - The company faces potential penalties and legal liabilities due to non-compliance with various privacy and data protection regulations, including GDPR and CPRA[88]. Risks and Compliance - The company is subject to various legal and regulatory risks, including compliance with the U.S. Foreign Corrupt Practices Act and other international laws[135]. - The company's reputation and financial results could be adversely affected by improper conduct by employees or business partners[144]. - The company actively protects its intellectual property rights, but infringement or counterfeiting could diminish brand value and adversely affect business[148]. - Negative publicity from labor law violations by third-party manufacturers could tarnish the company's brand image and result in a loss of sales[150]. - The company faces risks associated with international operations, including compliance with foreign laws and unexpected changes in tariffs and taxes[130]. Future Outlook - The company anticipates restructuring and other action-related charges totaling $60 million, including $54 million related to the Full Potential plan[198]. - Diluted earnings per share from continuing operations are expected to be approximately $0.14 to $0.25[198]. - The company expects gross and operating margin pressure to continue in the first half of fiscal 2023 due to higher-cost inventory, with expectations of easing in the second half[196]. - The company may incur additional costs to protect employee health and safety in response to the ongoing pandemic[96]. - The implementation of a new global enterprise resource planning system (ERP) requires significant investment and may lead to increased costs and operational risks[90].

Financial Data and Key Metrics - The company expects to generate approximately $500 million in operating cash flow in 2023, with a focus on debt reduction [23] - Adjusted gross margin for Q1 2023 is expected to decline by approximately 300 basis points due to commodity and freight inflation [50] - Full-year adjusted operating profit is projected to range between $500 million and $550 million, with Q1 adjusted operating profit expected to be between $50 million and $70 million [51] - Adjusted EPS for the full year is expected to range from $0.31 to $0.42, while Q1 adjusted EPS is projected to be a loss of $0.09 to $0.04 [52] Business Line Data and Key Metrics - The company has reduced global SKUs by 45% since 2019 and exited unproductive facilities, leading to high single-digit savings rates in sourcing and procurement operations [24] - The activewear business is undergoing operational streamlining, including global coordination of product design and merchandising, increased speed to market, and portfolio simplification [24] Market Data and Key Metrics - The company expects net sales to decline by 1% in constant currency or approximately 2% on a reported basis for the full year 2023, with easing comparisons beginning in Q2 [49] - The U.S. market is expected to remain challenging due to inflation, while Asia shows mixed results with improving traffic in Japan and China reopening post-COVID [124] Company Strategy and Industry Competition - The company is shifting its capital allocation strategy to focus on debt reduction, eliminating the dividend, and committing to reducing leverage to a range of 2-3x net debt to adjusted EBITDA [75] - The company is implementing cost-saving initiatives, including exiting unproductive facilities, consolidating sourcing vendors, and aggressively managing SG&A [22] - The company is confident in achieving its long-term financial targets, including $8 billion in sales and a 14% operating margin, despite a shifted timeline to 2026 [70] Management Commentary on Operating Environment and Future Outlook - Management expects macroeconomic challenges, including inflation and consumer demand pressures, to persist in 2023, particularly in the first half [38] - The company anticipates margin improvement in the second half of 2023 as lower-cost inventory begins to impact the P&L and inflationary pressures ease [21] - Management is optimistic about the company's ability to improve cash flow and margins as the year progresses, driven by cost-saving initiatives and operational efficiencies [44] Other Important Information - The company has recorded a non-cash reserve against its deferred tax asset, which will increase accounting tax expense and the effective tax rate in 2023 but will not impact cash taxes [28] - The company expects to refinance approximately $1.4 billion of its 2024 maturities in Q1 2023, subject to market conditions [29] Q&A Session Summary Question: Confidence in Business Improvement and Debt Refinancing [55] - Management expressed confidence in the business's foundational capabilities and expects margin improvement in the second half of 2023 as lower-cost inventory rolls through the P&L [56][57] - The company is prioritizing debt reduction and has eliminated the dividend to focus on improving shareholder returns in the long term [58] Question: Top-Line Progression and Retailer Inventory Actions [61] - Management expects a muted consumer demand environment in 2023, with retailer inventory actions likely to continue into Q1, leading to a conservative top-line outlook [62] Question: Inventory and Cost Dynamics [65] - Inventory dollars are up 25%, with unit costs increasing in the low to mid-teens due to inflation and mix [65] Question: Tax Rate and Inventory Cash Flow [67] - The effective tax rate for 2023 is expected to be 40%-45%, with deferred tax accounting expected to normalize over several years [68] - The company expects to release working capital and drive operating cash flow back to historical levels in 2023 [80] Question: SG&A Savings and Full Potential Plan [101] - The company has realized significant SG&A savings in 2022 and expects further savings in 2023 and 2024, while continuing to invest in technology and brand growth [102] Question: Champion Brand Recovery and Dividend Reinstatement [131][145] - Management is confident in the Champion brand's recovery, citing new leadership, product innovation, and channel segmentation as key drivers [132][133] - The company has no immediate plans to reinstate the dividend, focusing instead on debt reduction and long-term shareholder returns [149] Question: Interest Expense and Inventory Management [92][94] - The company expects adjusted interest and other expenses to be nearly $300 million for the full year, driven by higher variable rate debt and refinancing costs [51] - Inventory management is expected to drive working capital benefits in 2023, with units down 6% compared to the prior year [91]