Hanesbrands Inc. (HBI) reported mixed first-quarter 2024 results, with the top line declining 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. Management reaffirmed its 2024 guidance.Q1 in DetailThe company posted an adjusted loss from continuing operations of 2 cents per share, narrower than the Zacks Consensus Estimate, which was pegged at a loss of 6 cents. The metric improved from a loss of 6 c ...

Financial Data and Key Metrics Changes - Net sales for Q1 2024 were $1.16 billion, a decrease of $233 million or nearly 17% compared to the prior year, with adjustments accounting for approximately 10% decline year-over-year [24][25] - Gross margin improved to 39.9%, up 720 basis points from the previous year, driven by lower input costs and cost-saving initiatives [27][28] - Operating margin for the quarter was 7.3%, an increase of 270 basis points over last year [28][29] - Earnings per share for the quarter was a loss of $0.02, which was better than expected [29] Business Line Data and Key Metrics Changes - U.S. Innerwear sales decreased by 8% compared to the prior year, with a 50 basis point market share gain [25][16] - U.S. Activewear sales decreased approximately 31%, with two-thirds of the decline attributed to timing-related items from the previous year [26] - Global Champion sales decreased 25% on a constant currency basis, with the transition of the kids' business to a license model accounting for a significant portion of the decline [17] Market Data and Key Metrics Changes - International sales decreased by 9% in constant currency, with growth in Latin America, Japan, and China offset by declines in Europe and Australia [27] - The U.S. e-commerce business was up 12% in the first quarter, indicating a positive trend in that channel [84] Company Strategy and Development Direction - The company is increasing brand marketing investments to support innovation and build relevance with younger consumers [9][10] - A focus on the Champion brand's performance enhancement plan is underway, with strategic collaborations and new product offerings [10][11] - The company aims to reduce debt and enhance shareholder value through a lower fixed-cost structure and improved operating models [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year operating profit guidance of $500 million to $520 million, despite a challenging consumer environment [32][39] - The macro consumer environment is expected to remain challenging, but management anticipates a gradual improvement in sales trends throughout the year [31][32] - Management believes the underlying financial model is strong, with healthy margins and consistent cash generation expected to drive future growth [18][20] Other Important Information - The company has taken out more than $200 million in fixed costs over the past three years, contributing to improved financial flexibility [18] - The process of evaluating strategic alternatives for the Global Champion business is ongoing, with strong interest from various parties [11][67] Q&A Session Summary Question: Can you elaborate on the visibility into the company's profit recovery? - Management expressed high confidence in the operating profit guidance, expecting year-over-year improvement in margins despite a challenging environment [39] Question: What are the expectations for gross margin for the rest of the year? - Management is confident in maintaining a gross margin of 38.5% to 39% for the remainder of the year, with good visibility on input costs [44] Question: Are there differences in trends in Australia? - Management noted some improvement in Australia, particularly in the wholesale business, and expects the business to rebound in the second half of the year [65] Question: What are the brand marketing investments focused on? - The company is concentrating marketing investments on innovation and brand strengthening, with a significant increase in advertising for new product launches [71] Question: What is the outlook for the U.S. Innerwear segment? - Management expects a moderating trend in the U.S. Innerwear segment, guiding for a 3% to 4% year-over-year decline in Q2 [60] Question: Will the company maintain control of Champion? - Management confirmed that the evaluation process for Champion is ongoing, with no announcements regarding a sale at this time [67]

For the quarter ended March 2024, HanesBrands (HBI) reported revenue of $1.16 billion, down 16.8% over the same period last year. EPS came in at -$0.02, compared to -$0.06 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.17 billion, representing a surprise of -1.44%. The company delivered an EPS surprise of +66.67%, with the consensus EPS estimate being -$0.06.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

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)