HanesBrands Inc. Announces First-Quarter 2025 Results

Yahoo

08-05-2025

Reports better-than-expected first quarter results. Reiterates full-year 2025 guidance, which includes its expected impacts from U.S. tariffs.
Net Sales were $760 million; an increase of 2.1% over prior year and consistent with prior year on an organic constant currency basis.
GAAP Gross Margin increased 170 basis points over prior year to 41.7%. Adjusted Gross Margin increased 165 basis points to 41.6%.
GAAP Operating Profit increased 126% over prior year to $80 million and GAAP Operating Margin increased 575 basis points to 10.5%. Adjusted Operating Profit increased 61% to $81 million and Adjusted Operating Margin increased 390 basis points to 10.7%.
GAAP earnings per share (EPS) increased approximately 145% over prior year to $0.04. Adjusted EPS increased 240% to $0.07.
Completed refinancing of all 2026 maturities in first-quarter 2025. Leverage declined 1.4 times compared to prior year to 3.6 times net debt-to-adjusted EBITDA.
WINSTON-SALEM, N.C., May 08, 2025 --(BUSINESS WIRE)--HanesBrands Inc. (NYSE: HBI), a global leader in everyday iconic apparel, today announced results for the first-quarter 2025.
"We delivered another strong quarter, including revenue, operating profit and earnings per share that exceeded our expectations as we continue to see the benefits of our growth strategy and prior transformation initiatives," said Steve Bratspies, CEO. "We also reiterated our full-year outlook, which now reflects our expected impact from U.S. tariffs, as the current environment presents challenges but also creates real revenue opportunities. We're confident we can fully mitigate the cost headwinds as we have many levers to pull, including further cost reductions and pricing actions. We're also actively pursuing new revenue opportunities, which we believe we're in an advantaged position to capture given our western hemisphere supply chain speed and capabilities matched with our strong retailer relationships."
First-Quarter 2025 Results
Net Sales from continuing operations were $760 million.
Net Sales increased 2.1% compared to prior year.
On an organic constant currency basis, Net Sales were consistent with prior year (Table 2-B).
Gross Profit and Gross Margin increased year-over-year driven by lower input costs, the benefits from cost savings initiatives, and the benefits from assortment management.
The Company continued its consolidation and other optimization actions in its supply chain to lower fixed costs, increase efficiencies, and further improve customer service and in-stocks with lower levels of inventory. The Company expects these actions to drive continued benefits in 2025.
Gross Profit increased 6% to $317 million and Gross Margin increased 170 basis points to 41.7% as compared to prior year.
Adjusted Gross Profit increased 6% to $316 million and Adjusted Gross Margin increased 165 basis points to 41.6% as compared to prior year.
Adjusted Gross Profit and Adjusted Gross Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).