HanesBrands Reports SecondQuarter 2024 Financial Results
Intellectia.AI1970-01-01
HanesBrands Reports Second-Quarter 2024 Financial Results
HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, announced its financial results for the second-quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 Actual | Q2 2023 Actual | YoY Change | Consensus Estimate | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $995M | $1.036B | -4% | $1.36B | Miss |
| Adjusted Earnings per Share (EPS) | $0.15 | $0.02 | +650% | $0.10 | Beat |
| Adjusted Operating Profit | $126M | $86M | +46% |
HanesBrands experienced a year-over-year decrease in total revenue by 4%, primarily impacted by foreign exchange rates and a divestiture from the previous year. Despite this, the company saw a considerable improvement in its adjusted EPS and operating profit, indicating strong underlying operational performance and effective cost management.
Segment Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change | Operating Margin |
|---|---|---|---|---|
| U.S. | $727M | $735M | -1% | 21.4% |
| International | $268M | $301M | -4% | 12.0% |
The U.S. segment posted a marginal revenue decline of 1%, but achieved a substantial gain in market share within innerwear. The International segment also saw a 4% decline in revenue on a reported basis, though managed a 2% increase on a constant currency basis, demonstrating mixed regional performance with specific challenges in Australia.
Comments from Company Officers
Steve Bratspies, CEO, commented, "We delivered solid second-quarter results in a challenging consumer and apparel market, including better-than-expected U.S. innerwear performance and margin expansion. We've taken several strategic actions that have fundamentally strengthened and simplified our business, better positioning the Company for consistent revenue growth, higher profit margins, and strong cash generation."
Forward Guidance
HanesBrands has adjusted its full-year 2024 guidance to reflect continuing operations, projecting strong profit and EPS growth. The company expects net sales for fiscal year 2024 to range between $3.59 billion and $3.63 billion and adjusted EPS to be between $0.31 and $0.37. For the third quarter of 2024, the company expects net sales from continuing operations between $920 million and $950 million and adjusted EPS from $0.09 to $0.14.
Stock Price Movement
Following the earnings release, HanesBrands’ stock price rose by approximately 2.69%, reflecting investor confidence in the reported financial performance and forward-looking statements.
HanesBrands continues to execute strategic initiatives, including the sale of its global Champion business and the exit of U.S. outlet stores, positioning itself for a simplified operational structure and enhanced shareholder value in the years to come.
The report has been organized into a clear and concise format suitable for investors.
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