Hanes and Urban Outfitters Collaboration: HanesBrands (HBI) has launched an exclusive capsule collection with Urban Outfitters, blending nostalgia with modern fashion trends. This collaboration could enhance brand visibility and potentially drive sales, especially among younger consumers.
Target's New Partnership with Champion: Target announced a multi-year deal with Champion, which was previously part of HanesBrands. This could increase competition in the apparel market, potentially impacting HanesBrands' market share.
Based on the analysis, HBI is expected to rise slightly next week, targeting the R1 level of 6.12. The stock is near oversold territory, and the collaboration with Urban Outfitters could provide a bullish catalyst.
Buy HBI with a target price of $6.20 and a stop-loss at $5.74.
The price of HBI is predicted to go up 3%, based on the high correlation periods with ALG. The similarity of these two price pattern on the periods is 93.68%.
HBI
ALG
Hanes' Champion is a contender in the hot but crowded athleisure space. The brand is already well known in North America and parts of Europe, and there is significant potential in China and other underpenetrated markets.
Hanesbrands has successfully introduced brand extensions that have allowed it to expand shelf space and increase price points in the typically staid category of basic apparel.
Hanes paid down more than $500 million in debt in 2023 and is poised for another $300 million in debt reduction in 2024. Its paydown will be even greater if Champion is sold.
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