Apparel maker HanesBrands' Q2 sales beat estimates, raises full-year outlook
Overview
HanesBrands Q2 net sales rise 1.8%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 increases 60%, surpassing analyst estimates, per LSEG data
Co raises full-year 2025 outlook for net sales, operating profit, and EPS
Outlook
HanesBrands expects full-year 2025 net sales of $3.53 bln
Company projects full-year adjusted EPS of $0.66
HanesBrands sees third-quarter net sales at $900 mln
Company anticipates $35 mln tax expense for full-year 2025
Result Drivers
COST SAVINGS - Gross margin improvement driven by cost savings and productivity initiatives, per CEO Steve Bratspies
LOWER INPUT COSTS - Gross profit and margin benefited from lower input costs
SG&A REDUCTION - Operating profit increase attributed to lower SG&A expenses and disciplined expense management
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $991.32 mln | $970 mln (6 Analysts) |
Q2 Adjusted EPS | Beat | $0.24 | $0.18 (5 Analysts) |
Q2 Gross Margin |
| 41.6% |
|
Q2 Adjusted operating profit | Beat | $153 mln | $136 mln (5 Analysts) |
Q2 Adjusted Gross Margin |
| 41.2% |
|
Q2 Adjusted operating Margin |
| 15.5% |
|
Q2 Operating Margin |
| 15.6% |
|
Q2 Operating profit |
| $154.66 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy."
Wall Street's median 12-month price target for HanesBrands Inc is $5.50, about 24.2% above its August 6 closing price of $4.17
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw5XkwHHa
