p strong HanesBrands Reports SecondQuarter 2024 Financial Results strongpp HanesBrands Inc NYSEHBI
Intellectia.AI Updated: 1970-01-01
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 | Q2 2023 | YoY Change (%) | Q1 2024 | QoQ Change (%) | Consensus Estimate | Comparison to Consensus (%) |
|---|---|---|---|---|---|---|---|
| Total Revenue | $995M | $1.04B | -4% | $870M | +14.4% | $1.36B | -26.8% |
| GAAP EPS | $(0.39) | $(0.03) | N/A | $(0.1) | N/A | $0.10 | N/A |
| Adjusted EPS | $0.15 | $0.02 | +650% | $0.05 | +200% | $0.10 | +50% |
| Operating Loss | $(63M) | $(24M) | N/A | $(38M) | N/A | N/A | N/A |
| Adjusted Operating Profit | $126M | $86M | +46% | $110M | +14.5% | N/A | N/A |
Interpretation : HanesBrands achieved a stronger-than-expected adjusted EPS of $0.15, significantly higher than both Q2 2023 and market estimates. Despite a year-over-year decline in total revenue, the company's cost-saving initiatives and better performance in the U.S. innerwear market contributed to improved margins and profit growth.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change (%) |
|---|---|---|---|
| U.S. | $678M | $685M | -1% |
| International | $317M | $355M | -4% |
Interpretation : The U.S. segment saw a slight dip in revenue but gained market share in the innerwear category due to increased marketing and product innovation. The International segment experienced a decline driven primarily by unfavorable foreign exchange rates and macroeconomic headwinds in Australia, although it performed well on a constant-currency basis.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | Commentary |
|---|---|---|---|
| Cash Flow from Operations | $78M | $88M | Strong operational cash flow despite revenue dip |
| Debt Reduction | 7 quarters | N/A | Continuous reduction in debt |
| Inventory at End of Quarter | $938M | $1.17B | Effective inventory management |
Comments from Company Officers
CEO Steve Bratspies stated, "We delivered solid second-quarter results in a challenging consumer and apparel market, including better-than-expected U.S. innerwear performance and margin expansion. Several strategic actions have fundamentally strengthened and simplified our business, better positioning the Company for consistent revenue growth, higher profit margins, and strong cash generation."
Forward Guidance
For the full year 2024, HanesBrands expects: - Net Sales from Continuing Operations: $3.59 billion to $3.63 billion - Adjusted Operating Profit: $395 million to $415 million - Adjusted EPS: $0.31 to $0.37
For the third quarter of 2024, the company forecasts: - Net Sales from Continuing Operations: $920 million to $950 million - Adjusted Operating Profit: $105 million to $120 million - Adjusted EPS: $0.09 to $0.14
Stock Price Movement
Post-earnings release, HanesBrands' stock saw a positive move, with an increase of approximately 4.35%.
In summary, HanesBrands' strategic initiatives and operational efficiencies resulted in a robust financial performance for the second quarter of 2024, despite revenue headwinds. The company’s focus on core business segments and disciplined cost management positions it for continued growth and shareholder value creation.
