Chase Celebrates Major Milestone in its Multi-Billion Dollar Retail Expansion
At a ribbon-cutting ceremony in Charlotte, North Carolina, JPMorganChase executives joined local community members to officially open the new branch and highlight the positive impact Chase branches have on local neighborhoods.
'Every day, nearly one million customers visit our branches to manage their finances or get advice on how to save, spend and grow their money,' said Jennifer Roberts, CEO of Chase Consumer Banking. 'We are very proud of the role we play to serve these customers while providing opportunities for long-term economic growth through construction, community investments and local hiring.'
Chase will continue expanding its presence in low-to-moderate income and rural communities with limited access to traditional banking services, as well as markets such as Boston, Charlotte, Philadelphia, Raleigh and Washington, D.C.
Over the past seven years, Chase has opened more branches than all large bank peers combined, bringing affordable and convenient financial services to communities in all lower 48 states. Today, Chase covers more Americans than any other bank, with 68% of the U.S. population within an accessible drive time to one of its branches. The bank is on track to meet its goal of 500 new branches by early 2027, contributing to its long-term plans of reaching 75% of the national population within an accessible drive and over 50% within each state.
Chase Branches: Catalysts for Economic Growth
Chase branches are more than just financial service providers; they are vital engines driving economic activity and supporting local communities. JPMorganChase's internal research highlights the substantial impact these branches have on lending, employment, customer engagement and deposit balances.
Annually, Chase branches originate billions in business and home loans, directly fueling local lending activity and fostering economic growth in surrounding areas. With a workforce of around 50,000 customer-facing staff, Chase branches offer significant employment opportunities, bolstering the local economy.
Chase branches also play a pivotal role in supporting local economic activity and retail spending, serving approximately 300 million visiting customers each year and handling around 900 million transactions.
These findings reveal that new branches have stronger retail activity and marked increases in business activity, mortgage originations and household income in areas with Chase branches compared to matched areas without them.
"We've long recognized that our branches serve as storefronts for all our capabilities across the firm, from banking to lending to wealth management and business formation," Roberts added. "What's truly exciting is seeing them act as catalysts for economic activity in the communities we serve."
When this expansion is completed, Chase will have added more than 1,100 branches, renovated 4,300 locations, entered 80 markets and hired more than 10,500 employees to its Consumer Bank team since 2018.
'Our commitment to local communities extends beyond providing financial services,' said Tom Horne, Head of Consumer Branch Banking at Chase. 'From construction to day-to-day branch operations, we hire locally, ensuring that our expansion directly contributes to the economic vitality of the areas we serve. We're not just building branches; we are investing in the long-term health and future of our communities.'
Chase is actively hiring to support these new branches, building on its more than 50,000 local bankers, advisors, business relationship managers and branch managers, who together operate as a local team of experts to serve customer needs. Chase offers $20 – $25 per hour, depending on work location, as minimum base pay for U.S. overtime-eligible employees, as well as a comprehensive benefits package that is valued on average at approximately $19,500 per employee.
The bank offers a variety of different branch formats, depending on the specific needs of the community. Some locations include meeting rooms and private spaces for personal conversations, while high-volume, full-service branches feature multiple transaction windows.
Chase also operates 19 Community Centers across the country as part of an overall effort to expand access to banking, tools and advice to people who might not otherwise have access to them. These Community Centers are part of Chase's community-inspired branch network, which includes 300 locations in underserved areas.
Ramping Up Affluent Offering
In addition to the new branches, Chase is expanding its affluent offering by opening new J.P. Morgan Financial Centers in many markets across the country, bringing a highly personalized level of service to millions of potential clients. The bank plans to have 31 Financial Centers open by the end of next year.
Today, Chase serves nearly 80 million consumers and close to 6 million small businesses with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing.
To check for updates or to learn more about Chase's branches, products and services, please visit Chase.com.
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States of America with assets of $4.6 trillion and operations worldwide. Chase serves more than 85 million consumers and 7 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: Nearly 5,000 branches in 48 states and the District of Columbia, nearly 15,000 ATMs, mobile, online and by phone. For more information, go to chase.com.
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Article content Non-GAAP Financial Measures Article content To supplement the financial measures, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we provide investors with non-GAAP financial measures including (i) adjusted gross profit (and margin), (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss) and non-GAAP net income (loss) per share, and (iv) adjusted free cash flow and adjusted free cash flow margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. 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Article content To calculate the NRR for a specific quarter, we determine the revenue recognized in that quarter from customers who generated revenue during the same quarter of the previous year. This revenue is then divided by the revenue generated in the prior year quarter. Our overall NRR rate is calculated as the average of these quarterly rates over the past four quarters to provide a comprehensive view of revenue trends. Article content Gross Customer Retention Rate Article content We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. 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This measure provides management with greater transparency into the underlying trends in our business by facilitating period-to-period comparisons of our ongoing cost structure, excluding the impact of certain non-cash or non-recurring items that may not be indicative of our operating performance. These measures are intended to assist in forecasting and budgeting by providing greater visibility into our normalized expense base. Article content Article content Article content Article content Contacts Article content Investors Contact Article content Article content Mimi Kong Article content Article content Sr. Director, Investor Relations and Corporate Development Article content Article content ir@ Article content Press Contact Article content Article content Yev Pusin Article content Article content Article content
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The Company continued to focus on its core growth fundamentals including innovation, brand investments, and incremental programming opportunities. These fundamentals delivered year-over-year growth in its Basics, Active, and New businesses. Similar to the overall innerwear market, this growth was more than offset by continued headwinds in its Intimate Apparel business. Article content Operating margin of 25.0% increased 360 basis points over prior year driven by benefits from cost savings and productivity initiatives as well as lower input costs. Article content International Article content net sales decreased 3% on a reported basis, which included a $7 million headwind from unfavorable foreign exchange rates, and were consistent with prior year on a constant currency basis. By region, constant currency net sales increased in the Americas, were consistent with prior year in Australia, and decreased in Asia. Article content Operating margin of 10.7% decreased 225 basis points compared to prior year, driven primarily by increased promotional activity, unfavorable mix, increased brand investment and the impact from foreign exchange rates, which more than offset the benefits from cost savings initiatives and lower input costs. Article content Balance Sheet and Cash Flow Article content Based on the calculation as defined in the Company's senior secured credit facility, the Leverage Ratio at the end of second-quarter 2025 was 3.3 times on a net debt-to-adjusted EBITDA basis, which was below prior year's 4.6 times (Table 6-B). Inventory at the end of second-quarter 2025 of $957 million increased 4%, or $40 million, year-over-year. Cash Flow from Operations was $36 million in second-quarter 2025, which compared to $78 million last year. Free Cash Flow for the quarter was $27 million as compared to $71 million last year. Article content Third-Quarter and Full-Year 2025 Financial Outlook Article content The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in fourth-quarter 2022. Importantly, the reserve does not impact cash taxes. Some portion of the reserve may reverse in future periods. Article content The Company defines organic constant currency Net Sales as Net Sales excluding the 'other' segment and the year-over-year impact from foreign exchange rates. Article content The Company's guidance reflects its expected impact from U.S. tariffs and is subject to change in the future. Article content For Fiscal year 2025, which ends January 3, 2026, and includes a 53rd week, the Company currently expects: Article content Net Sales from continuing operations of approximately $3.53 billion, which includes projected headwinds of approximately $35 million from changes in foreign currency exchange rates. Net Sales are expected to increase slightly over prior year on both a reported and organic constant currency basis. GAAP Operating Profit from continuing operations of approximately $471 million. Adjusted Operating Profit from continuing operations of approximately $485 million, which excludes pretax charges for restructuring and other action-related charges of approximately $14 million. The operating profit outlook includes a projected headwind of approximately $5 million from changes in foreign currency exchange rates. Interest expense of approximately $180 million. Other expenses of approximately $46 million, which includes approximately $10 million of one-time pretax charges related to first-quarter 2025 refinancing activities. Tax expense of approximately $35 million. GAAP Earnings Per Share from continuing operations of approximately $0.59. Adjusted Earnings Per Share from continuing operations of approximately $0.66. Cash Flow from Operations of approximately $350 million. Capital investments of approximately $65 million, consisting of approximately $50 million of capital expenditures and approximately $15 million of cloud computing arrangements. Free Cash Flow of approximately $300 million. Fully diluted shares outstanding of approximately 357 million. Article content For third-quarter 2025, which ends on September 27, 2025, the Company currently expects: Article content Net Sales from continuing operations of approximately $900 million, which includes projected headwinds of approximately $7 million from changes in foreign currency exchange rates. Net Sales are expected to be relatively consistent with prior year on both a reported and organic constant currency basis. GAAP Operating Profit from continuing operations of approximately $116 million. Adjusted Operating Profit from continuing operations of approximately $122 million, which excludes pretax charges for restructuring and other action-related charges of approximately $6 million. The operating profit outlook includes a projected headwind of approximately $1 million from changes in foreign currency exchange rates. Interest expense of approximately $46 million. Other expenses of approximately $10 million. Tax expense of approximately $10 million. GAAP Earnings Per Share from continuing operations of approximately $0.14. Adjusted Earnings Per Share from continuing operations of approximately $0.16. Fully diluted shares outstanding of approximately 357 million. Article content HanesBrands has updated its quarterly frequently-asked-questions document, which is available at Article content To supplement financial results prepared in accordance with generally accepted accounting principles, the Company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted EPS from continuing operations, adjusted income (loss) from continuing operations, adjusted operating profit (and margin), adjusted gross profit (and margin), EBITDA, adjusted EBITDA, organic constant currency net sales, net debt, leverage ratio and free cash flow. Article content Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations excluding actions and the tax effect on actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted gross profit is defined as gross profit excluding actions. Article content Charges for actions taken in 2025 and 2024, as applicable, include supply chain restructuring and consolidation, headcount actions and related severance charges, professional services, gain/loss on sale of business and classification of assets held for sale, loss on extinguishment of debt, corporate asset impairment charges, and the tax effects thereof. Article content While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances. Article content HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of our supply chain restructuring and consolidation and other actions that are deemed to be material stand-alone initiatives apart from the Company's core operations. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the Company's ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken. Article content The Company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as net income (loss) before the impacts of discontinued operations, interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding (x) restructuring charges related to our supply chain restructuring and consolidation, and other action-related charges described in more detail in Table 6-A and (y) certain other losses, charges and expenses as defined in the Consolidated Net Total Leverage Ratio under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025 (the 'Credit Agreement') described in more detail in Table 6-B. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business. Article content Net debt is defined as the total of current debt, long-term debt, and borrowings under the accounts receivable securitization facility (excluding long-term debt issuance costs and debt discount and borrowings of unrestricted subsidiaries under the accounts receivable securitization facility) less (x) other debt and cash adjustments and (y) cash and cash equivalents. Leverage ratio is the ratio of net debt to adjusted EBITDA as it is defined in our Credit Agreement. The Company defines free cash flow as net cash from operating activities less capital expenditures. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. The Company defines organic net sales as net sales excluding the 'other' segment and excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date. Article content HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company's reported operating results, HanesBrands also presents constant-currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation. To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). HanesBrands believes constant currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the Company's businesses. The Company defines organic constant currency sales as net sales excluding the 'other' segment and also excluding the impact of translating foreign currencies into U.S. dollars as discussed above. Article content Non‐GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies. Article content Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release. Article content Cautionary Statement Concerning Forward-Looking Statements Article content This news release contains information that may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the 'Exchange Act'). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as 'may,' 'believe,' 'could,' 'will,' 'expect,' 'outlook,' 'potential,' 'project,' 'estimate,' 'future,' 'intend,' 'anticipate,' 'plan,' 'continue' or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those implied or expressed by such statements. These risks and uncertainties include, but are not limited to, trends associated with our business; our ability to successfully implement our strategic plans, including our supply chain restructuring and consolidation and other cost savings initiatives; the rapidly changing retail environment and the level of consumer demand; the effects of any geopolitical conflicts (including the ongoing Russia-Ukraine conflict and Middle East conflicts) or public health emergencies or severe global health crises, including effects on consumer spending, global supply chains, critical supply routes and the financial markets; our ability to deleverage on the anticipated time frame or at all; any inadequacy, interruption, integration failure or security failure with respect to our information technology; future intangible assets or goodwill impairment due to changes in our business, market condition, or other factors; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations, including the imposition of or changes in duties, taxes, tariffs and other charges impacting our products or supply chain, or the threat thereof; our ability to effectively manage our complex international tax structure; our future financial performance; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements. Such statements speak only as of the date when made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Article content About HanesBrands Article content HanesBrands (NYSE: HBI) is a socially responsible global leader in everyday iconic apparel with a mission to create a more comfortable world for every body. The company owns a portfolio of some of the world's most recognized apparel brands including Hanes, the leading basic apparel brand in the U.S.; Bonds, an Australian staple since 1915 that is setting new standards for design and innovation; Maidenform, America's number one shapewear brand; and Bali, America's number one national bra brand. HanesBrands owns the majority of its worldwide manufacturing facilities and has built a strong reputation for workplace quality, ethical business practices, and reducing environmental impact. Article content 1 Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. 2 Results for the quarters ended June 28, 2025 and June 29, 2024 reflect adjustments for restructuring and other action-related charges. See 'Reconciliation of Select GAAP Measures to Non-GAAP Measures' in Table 6-A. 3 Amounts may not be additive due to rounding. Article content 1 Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. 2 Results for the six months ended June 28, 2025 and June 29, 2024 reflect adjustments for restructuring and other action-related charges. See 'Reconciliation of Select GAAP Measures to Non-GAAP Measures' in Table 6-A. 3 Amounts may not be additive due to rounding. Article content 1 Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. 2 Other sales in the second quarter of 2025 consist of sales from the Company's supply chain and short term support/transition services agreements for disposed businesses. Other sales in the second quarter of 2024 primarily reflect the U.S. Sheer Hosiery business which was sold on September 29, 2023. Article content 1 Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. 2 Other sales in the six months ended June 28, 2025 consist of sales from the Company's supply chain and short term support/transition services agreements for disposed businesses. Other sales in the first six months of 2024 primarily reflect the U.S. Sheer Hosiery business which was sold on September 29, 2023. Article content TABLE 3 HANESBRANDS INC. Supplemental Financial Information By Business Segment (in thousands) (Unaudited) Quarters Ended Six Months Ended June 28, 2025 June 29, 2024 % Change June 28, 2025 June 29, 2024 % Change Segment net sales: U.S. $ 735,483 $ 740,154 (0.6 )% $ 1,271,708 $ 1,284,045 (1.0 )% International 225,953 233,073 (3.1 ) 421,492 433,084 (2.7 ) Total segment net sales 961,436 973,227 (1.2 ) 1,693,200 1,717,129 (1.4 ) Other net sales 29,889 700 4,169.9 58,273 1,473 3,856.1 Total net sales $ 991,325 $ 973,927 1.8 % $ 1,751,473 $ 1,718,602 1.9 % Segment operating profit: U.S. $ 183,628 $ 158,214 16.1 % $ 295,797 $ 256,477 15.3 % International 24,253 30,237 (19.8 ) 46,746 47,038 (0.6 ) Total segment operating profit 207,881 188,451 10.3 342,543 303,515 12.9 Other profit (loss) 4,388 (130 ) 3,475.4 6,817 551 1,137.2 General corporate expenses (55,162 ) (58,212 ) (5.2 ) (107,600 ) (118,904 ) (9.5 ) Amortization of intangibles (3,640 ) (4,278 ) (14.9 ) (7,276 ) (8,948 ) (18.7 ) Total operating profit before restructuring and other action-related charges 153,467 125,831 22.0 234,484 176,214 33.1 Restructuring and other action-related charges 1,191 (189,034 ) (100.6 ) 82 (204,003 ) (100.0 ) Total operating profit (loss) $ 154,658 $ (63,203 ) 344.7 % $ 234,566 $ (27,789 ) 944.1 % Article content Quarters Ended Six Months Ended June 28, 2025 June 29, 2024 Basis Points Change June 28, 2025 June 29, 2024 Basis Points Change Segment operating margin: U.S. 25.0 % 21.4 % 359 23.3 % 20.0 % 329 International 10.7 13.0 (224 ) 11.1 10.9 23 Total segment operating profit 21.6 19.4 226 20.2 17.7 255 Other profit (loss) 14.7 (18.6 ) 3,325 11.7 37.4 (2,571 ) General corporate expenses (5.6 ) (6.0 ) 41 (6.1 ) (6.9 ) 78 Amortization of intangibles (0.4 ) (0.4 ) 7 (0.4 ) (0.5 ) 11 Total operating margin before restructuring and other action-related charges 15.5 12.9 256 13.4 10.3 313 Restructuring and other action-related charges 0.1 (19.4 ) 1,953 — (11.9 ) 1,187 Total operating margin 15.6 % (6.5 )% 2,209 13.4 % (1.6 )% 1,501 Article content TABLE 4 June 28, 2025 December 28, 2024 June 29, 2024 Assets Cash and cash equivalents $ 220,343 $ 214,854 $ 213,267 Trade accounts receivable, net 487,010 376,195 463,302 Inventories 957,048 871,044 916,683 Other current assets 139,838 152,853 181,653 Current assets held for sale 57,421 100,430 511,003 Total current assets 1,861,660 1,715,376 2,285,908 Property, net 190,358 188,259 208,374 Right-of-use assets 242,743 222,759 230,425 Trademarks and other identifiable intangibles, net 910,148 886,264 936,294 Goodwill 648,362 638,370 653,934 Deferred tax assets 16,466 13,591 17,029 Other noncurrent assets 126,169 116,729 122,727 Noncurrent assets held for sale 23,412 59,593 925,153 Total assets $ 4,019,318 $ 3,840,941 $ 5,379,844 Liabilities Accounts payable $ 589,723 $ 593,377 $ 693,492 Accrued liabilities 403,636 452,940 502,382 Lease liabilities 71,510 64,233 60,122 Accounts Receivable Securitization Facility 76,000 95,000 — Current portion of long-term debt 26,250 — 44,250 Current liabilities held for sale 60,281 42,990 266,234 Total current liabilities 1,227,400 1,248,540 1,566,480 Long-term debt 2,265,394 2,186,057 3,224,155 Lease liabilities – noncurrent 222,509 206,124 212,706 Pension and postretirement benefits 57,570 66,171 90,367 Other noncurrent liabilities 66,502 67,452 90,768 Noncurrent liabilities held for sale 13,582 32,587 130,965 Total liabilities 3,852,957 3,806,931 5,315,441 Stockholders' equity Preferred stock — — — Common stock 3,537 3,525 3,516 Additional paid-in capital 380,692 373,213 363,078 Retained earnings 306,759 234,494 217,400 Accumulated other comprehensive loss (524,627 ) (577,222 ) (519,591 ) Total stockholders' equity 166,361 34,010 64,403 Total liabilities and stockholders' equity $ 4,019,318 $ 3,840,941 $ 5,379,844 Article content TABLE 5 Operating Activities: Net income (loss) $ 81,611 $ (298,380 ) $ 72,155 $ (337,502 ) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation 6,503 22,304 13,861 39,978 Amortization of acquisition intangibles 1,866 4,100 3,705 8,203 Other amortization 1,774 2,899 3,571 6,198 Impairment of long-lived assets and goodwill — 76,604 — 76,604 Inventory write-down charges — 117,663 — 117,663 Loss on extinguishment of debt — — 9,293 — Loss on sale of business and classification of assets held for sale 1,131 51,071 6,093 51,071 Amortization of debt issuance costs and debt discount 1,675 2,561 3,554 5,105 Other 3,582 16,103 15,535 13,722 Changes in assets and liabilities: Accounts receivable (135,960 ) (51,193 ) (103,347 ) (54,487 ) Inventories 33,923 17,529 (59,876 ) (41,850 ) Accounts payable 3,028 30,964 19,094 134,029 Other assets and liabilities 37,181 86,201 (55,507 ) 85,863 Net cash from operating activities 36,314 78,426 (71,869 ) 104,597 Investing Activities: Capital expenditures (9,066 ) (7,834 ) (20,311 ) (28,091 ) Proceeds from sales of assets 7 3,625 159 3,653 Proceeds (payments) from disposition of businesses (2,342 ) — 26,327 — Net cash from investing activities (11,401 ) (4,209 ) 6,175 (24,438 ) Financing Activities: Borrowings on Term Loan Facilities — — 1,500,000 — Repayments on Term Loan Facilities — (14,750 ) (703,267 ) (29,500 ) Borrowings on Accounts Receivable Securitization Facility 373,000 467,000 663,000 980,500 Repayments on Accounts Receivable Securitization Facility (301,000 ) (484,500 ) (682,000 ) (986,500 ) Borrowings on Revolving Loan Facilities 1,212,500 293,000 2,143,500 609,000 Repayments on Senior Notes — — (900,000 ) — Payments to amend and refinance credit facilities (1,473 ) (501 ) (23,281 ) (679 ) Other (1,893 ) 214 (4,263 ) (3,817 ) Net cash from financing activities 16,134 (32,537 ) 67,189 (39,996 ) Effect of changes in foreign exchange rates on cash 3,356 (195 ) 3,994 (12,963 ) Change in cash and cash equivalents 44,403 41,485 5,489 27,200 Cash and cash equivalents at beginning of period 176,440 191,216 215,354 205,501 Cash and cash equivalents at end of period $ 220,843 $ 232,701 $ 220,843 $ 232,701 Balances included in the Condensed Consolidated Balance Sheets: Cash and cash equivalents $ 220,343 $ 213,267 $ 220,343 $ 213,267 Cash and cash equivalents included in current assets held for sale 500 19,434 500 19,434 Cash and cash equivalents at end of period $ 220,843 $ 232,701 $ 220,843 $ 232,701 Article content 1 The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. Article content 1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. 2 The last twelve months ended June 28, 2025 includes $19 million on a loss of extinguishment of debt, $17 million of professional services, $9 million of supply chain restructuring and consolidation charges, $1 million related to other restructuring and other action-related charges, and $(3) million of adjustments to headcount actions and related severance charges. The last twelve months ended June 29, 2024 includes $158 million of supply chain restructuring and consolidation charges, $22 million of headcount actions and related severance charges, $20 million related to corporate asset impairment charges, $6 million of professional services, $2 million related to other restructuring and other action-related charges, and $(2) million related to an adjustment of a loss on sale of business and classification of assets held for sale. The items included in restructuring and other action-related charges are described in more detail in Table 6-A. 3 Represents other net losses, charges and expenses that can be excluded from the Company's leverage ratio as defined under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended. The last twelve months ended June 28, 2025, primarily includes $60 million of excess and obsolete inventory write-offs, $21 million in other compensation related items primarily stock compensation expense, $16 million in charges related to sales incentive amortization, $15 million of pension non-cash expense, $14 million of non-cash cloud computing expense, $8 million of other non-cash expenses, $2 million in charges related to unrealized losses due to hedging, $1 million related to extraordinary cash events, and $(4) million adjustment for interest expense on debt and amortization of debt issuance costs related to an unrestricted subsidiary. The last twelve months ended June 29, 2024, primarily includes $50 million of excess and obsolete inventory write-offs, $18 million in other compensation related items primarily stock compensation expense, $16 million of pension non-cash expense, $13 million in charges related to sales incentive amortization, $11 million of non-cash cloud computing expense, $(2) million in adjustments related to unrealized losses due to hedging, $(3) million adjustment to bad debt expense, and a $(7) million adjustment for interest expense on debt and amortization of debt issuance costs related to an unrestricted subsidiary. 4 Represents Total EBITDA from discontinued operations, as adjusted related to businesses still owned at period end, as adjusted for all items that can be excluded from the Company's leverage ratio as defined under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended. Total EBITDA from discontinued operations, as adjusted, excludes EBITDA related to the Initial and Deferred Close of the global Champion business and U.S. outlet stores business as the sale of these businesses were completed before the period end. Total EBITDA from discontinued operations, as adjusted, for the last twelve months ended June 29, 2024 includes $(114) million of Total EBITDA from discontinued operations and $291 million of certain discontinued operations restructuring and other action-related charges, other net losses, charges and expenses that can be excluded from the Company's leverage ratio as defined under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended. 5 Represents amounts outstanding under an existing accounts receivable securitization facility entered into by an unrestricted subsidiary of the Company. 6 Includes drawn and undrawn letters of credit, financing leases and cash balances in certain geographies. 7 Represents Debt divided by Income (loss) from continuing operations, which is the most comparable GAAP financial measure to Net debt/EBITDA, as adjusted. 8 Represents the Company's leverage ratio defined as Consolidated Net Total Leverage Ratio under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended, which excludes other net losses, charges and expenses in addition to restructuring and other action-related charges. Article content 1 The Company expects approximately 357 million diluted weighted average shares outstanding for the quarter ended September 27, 2025 and approximately 357 million diluted weighted average shares outstanding for the year ended January 3, 2026. The Company is unable to reconcile projections of financial performance beyond 2025 without unreasonable efforts, because the Company cannot predict, with a reasonable degree of certainty, the type and extent of certain items that would be expected to impact these figures in 2025 and beyond, such as net sales, operating profit, diluted earnings per share and action related charges. Article content Article content Article content Article content Article content Contacts Article content Analysts and Investors Contact: Article content Article content
