Hanesbrands to Report Q3 Earnings: What Should Investors Expect?

Core Insights - Hanesbrands Inc. (HBI) is expected to report year-over-year earnings growth for Q3 2025, with an estimated earnings per share of 16 cents, up from 15 cents in the same quarter last year [1][10] - The consensus estimate for quarterly revenues is $900.6 million, reflecting a 3.9% decline from the previous year's figure [2] Revenue Estimates - The revenue estimates for HBI's U.S. and international segments are $671.6 million and $209.1 million, indicating year-over-year declines of 1% and 19.3%, respectively [4] - Management projected net sales of $900 million for Q3, accounting for a $7 million foreign currency exchange rate headwind, suggesting modest year-over-year softness [5] Market Conditions - HBI is facing ongoing consumer softness and specific category pressures, particularly in the U.S. innerwear market, which is sluggish, especially in the intimate apparel category [3][10] - Broader macroeconomic challenges are also impacting key international markets [3] Profitability Factors - The company's transformation and cost-efficiency initiatives are expected to support profitability, with management anticipating adjusted operating profit of $122 million and adjusted earnings per share of 16 cents for Q3 [6] - Structural improvements, including a leaner cost structure, supply-chain efficiencies, and reduced interest expenses from debt paydown, are likely to offset weaker sales and support the bottom line [7] Earnings Prediction Model - The current model does not predict an earnings beat for HBI, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 [8]