Market Overview - U.S. futures pointed to new highs before the market opened, driven by recent inflation data that bolstered hopes for a Federal Reserve rate cut next month [2] - The S&P 500 and Nasdaq futures rose by 0.2%, while Dow Jones Industrial Average futures increased by 0.3%. Both the S&P 500 and Nasdaq reached new highs on Tuesday [3] Economic Factors - Market gains were partly attributed to relief over a potential trade truce between President Trump and China, alongside optimism regarding lower borrowing costs in the U.S. [4] - A rate cut would make borrowing cheaper, potentially boosting investment and reducing costs for households and businesses [4] - The Federal Reserve remains cautious, concerned that Trump's tariff policies could reignite high inflation [5] Corporate Developments - Gildan Activewear announced a $2.2 billion acquisition of HanesBrands, which will give HanesBrands shareholders nearly 20% of the new company [6] - Following acquisition rumors, HanesBrands' stock fell over 9% in pre-market trading after a 28% rise on Tuesday [7] Asian Market Performance - The Nikkei 225 index in Tokyo rose by 1.3%, continuing its upward trend after reaching a new high [8] - The Hang Seng Index in Hong Kong surged by 2.6%, while the Shanghai Composite Index increased by 0.5% [8] - South Korea's KOSPI index rose by 1.1%, and Taiwan's index gained 0.9% [10][11] European Market Performance - In Europe, the DAX index in Germany rose by 0.9%, and the CAC 40 index in Paris increased by 0.6% [12] Energy Market - U.S. benchmark crude oil prices fell by $0.52 to $62.65 per barrel, while Brent crude prices dropped by $0.44 to $65.68 per barrel [13] Currency Exchange - The USD/JPY exchange rate decreased from 147.84 to 147.51, while the EUR/USD rate increased from 1.1677 to 1.1713 [14]

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]