Latest news with #Bratspies
Yahoo
11-08-2025
- Business
- Yahoo
Hanesbrands Gets Comfy, Boosts Full-Year Outlook
Hanesbrands (HBI) has raised its full-year 2025 outlook for net sales, operating profit and earnings per share (EPS) in a move reflecting the Maidenform owner's expected impact from the United States' escalating trade tensions—thanks to its better-than-expected second quarter. 'For the third consecutive quarter, Hanesbrands delivered better-than-expected sales, gross margin, operating profit and earnings per share,' outgoing CEO Steve Bratspies said on the Aug. 7 earnings call. 'Our strong performance underscores the continued success of our growth strategy and is why we're raising our full year guidance.' More from Sourcing Journal Tariffs Could Deliver 'Crippling Blow' to India's Fashion Producers China's Exports Surge as Global Trump Tariffs Take Effect Maersk Lifts 2025 Outlook as Global Container Market Defies Tariff Turbulence HBI reported net sales of $991.3 million, up 1.8 percent year-over-year, with a gross profit of $412 million—up 38 percent YoY—as selling, general and administrative expenses improved. The company also booked an operating profit of $234.6 million, reversing the earlier $27.8-million loss for the six months ended June 29, 2024. Concurrently, its net profit increased to $72.2 million from a loss of $337.5 million for the comparable six-month period. 'This strong performance over the first half of the year is a direct result of our growth strategy and transformation work and gives us the confidence to raise our full year guidance,' Hanesbrands chief financial officer Scott Lewis said during the call. 'With respect to cash flow and the balance sheet, we reported $36 million of operating cash flow in the quarter, driven by strong profit performance and disciplined working capital management.' HBI's operating profit increased 345 percent over the prior year to $155 million, while the adjusted operating profit increased 22 percent to $153 million. The operating margin expanded 255 basis points over the previous year to 15.5 percent (adjusted). 'If you go back and you look, June was better than May, July has been better than June, so headwinds are still there, but we're starting to see momentum in the business. And we feel good about that,' Bratspies said. 'Whether it's us continuing to invest in our brands, leveraging the new assortment capabilities we have, the new businesses—which are really starting to gain traction—we feel good about top line and continue to perform as we've been performing.' To that end, the basic apparel manufacturer also gave its balance sheet some breathing room, paying down $1.5 billion of debt and reducing leverage by nearly 2.5 turns over the past two years, per Bratspies. This reduction follows the $1.2 billion deal that Hanesbrands cut with Authentic Brands Group last summer for the sale of its global Champion brand. 'Our transformation work and the execution of our growth strategy are generating tangible results,' he continued. 'We're operating on a stronger foundation. We're leveraging our competitive advantages and we're delivering strong financial performance.' On the topic of tariffs, HBI won't really feel the cost(s) until Q4, Bratspies told investors, given the company's inventory levels and how 'cost flows off' of the balance sheet. 'We're very confident that we will mitigate the tariffs at the rates that we're experiencing today,' Bratspies continued. 'We have very clear plans to do that.' Those clear plans include leveraging the meaningful U.S. content within HBI's offerings—thus exempt from reciprocal tariffs—and maintaining the supply chain's East-West balance, plus taking 'proactive and extensive' actions to reduce overall costs and implementing surgical pricing actions. 'We feel really good about where we are,' Bratspies said. 'The transformation work that we're doing, we're a simpler business; that positions us well to operate in this environment.' The North Carolina innerwear giant also reported an EPS of 24 cents—exceeding the 18 cents expectation—with an adjusted EPS increase of 60 percent YoY. Gross margin was up 1,100 basis points (41.6 percent) with adjusted gross margin up 145 basis points (41.2 percent). 'Putting some context on the assumptions within our full year outlook, as we have all year, we continue to take a conservative view in the muted consumer environment,' Lewis said. That said, HBI now expects its full-year sales to hit about $3.53 billion—with an operating profit of $485 million (up 17 percent) and an EPS to hit 66 cents (up 65 percent). 'Our outlook reflects what we know about tariffs today,' he added. 'We continue to believe we are well positioned to manage through the current tariff environment and remain confident that we can fully mitigate the cost headwinds, both in the short and long term.'
Fibre2Fashion
08-08-2025
- Business
- Fibre2Fashion
US' HanesBrands Q2 profit surges 345%, raises FY25 guidance
American clothing company HanesBrands Inc has posted a remarkable 345 per cent year-on-year (YoY) surge in operating profit to $155 million for the second quarter (Q2) of fiscal 2025 (FY25), ending June 28, driven by stronger margins and lower costs. Net sales rose 1.8 per cent YoY to $991 million, while gross profit jumped 38 per cent to $412 million and gross margin widened 1,100 basis points (bps) to 41.6 per cent. On an adjusted basis, the gross profit reached $408 million with a 145-bps increase in gross margin to 41.2 per cent. The operating margin rose 2,210 bps to 15.6 per cent. HanesBrands Inc has reported better-than-expected Q2 FY25 results with net sales up 1.8 per cent YoY to $991 million and gross profit rising 38 per cent. The operating profit soared 345 per cent to $155 million, with EPS at $0.24. US sales declined slightly, while international sales dropped 3 per cent. The company raised its full-year outlook and expects Q3 sales of $900 million. The adjusted operating profit was $153 million, rising 22 per cent with a margin of 15.5 per cent (up 255 basis points). Earnings per share (EPS) jumped 162 per cent YoY to $0.24, while adjusted EPS increased 60 per cent to the same value. Interest and other expenses fell by $4 million to $57 million, driven by lower debt balances, HanesBrands said in a press release. Region-wise, US sales declined by $5 million, though gains were seen in basics, active, and new businesses; these were offset by softness in intimate apparel. US operating margin rose 360 bps to 25 per cent. International sales declined 3 per cent on a reported basis (flat in constant currency), with regional growth in the Americas, flat sales in Australia, and a decline in Asia. International operating margin fell 225 basis points to 10.7 per cent, affected by higher promotional activity, unfavourable mix, and FX headwinds. The company's leverage ratio improved to 3.3 times net debt-to-adjusted EBITDA, down from 4.6 times in the prior year. Inventory rose 4 per cent YoY to $957 million, while cash flow from operations totalled $36 million, and free cash flow stood at $27 million, compared to $78 million and $71 million, respectively, last year. 'For the third consecutive quarter, we delivered revenue, profit and earnings per share growth that exceeded our expectations as we continue to see the benefits of our growth strategy and prior transformation initiatives,' said Steve Bratspies, CEO at HanesBrands Inc . 'With our strong performance to date and our visibility to cost savings and input costs, we raised our full-year outlook, which continues to reflect our expected impact from US tariffs.' 'Our strategy is delivering consistent results, and we're confident it positions us for continued long-term success. We have multiple avenues to drive increased shareholder returns over the next several years through consistent sales growth, additional margin expansion, and continued debt reduction,' added Bratspies. For the third quarter (Q3) FY25, ending September 27, outlook includes net sales of $900 million (with a $7 million FX headwind), GAAP operating profit of $116 million, adjusted operating profit of $122 million (excluding $6 million in charges), interest expense of $46 million, other expenses of $10 million, tax expense of $10 million, GAAP EPS of $0.14, and adjusted EPS of $0.16, with 357 million diluted shares outstanding. The company also forecasts diluted shares outstanding at approximately 357 million. Fibre2Fashion News Desk (SG)
Yahoo
08-08-2025
- Business
- Yahoo
Hanesbrands swings to Q2 profit as transformation plan pays off
For the Q2 period ending 28 June, sales at Hanesbrands increased 1.8% to $991.3m Gross profit substantially improved by 38% to $412m and selling, general and administrative expenses improved. Hanesbrands recorded a Q2 operating profit of $154.65m from an operating loss for the period a year earlier of $63.2m. It moved from a net loss of $298m to a profit of $82m. For the half-year period, sales improved by 1.9%. Hanesbrands booked an operating profit of $234.6m, reversing an earlier loss, and its net profit increased to $72.2m from a loss of $337.5m. 'We continue to see the benefits of our growth strategy and prior transformation initiatives,' said CEO Steve Bratspies. 'With our strong performance to date and our visibility to cost savings and input costs, we raised our full-year outlook, which continues to reflect our expected impact from US tariffs. Our strategy is delivering consistent results, and we're confident it positions us for continued long-term success. We have multiple avenues to drive increased shareholder returns over the next several years through consistent sales growth, additional margin expansion, and continued debt reduction.' Earlier this year, Bratspies announced he will be stepping down before the end of 2025. Last September Hanesbrands announced the divestiture of the Champion brand. Hanesbrands FY Outlook For the full year, Hanesbrands says it expects net sales from continuing operations of approximately $3.53bn, which includes projected headwinds of approximately $35m 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 is expected to be approximately $471m and GAAP Earnings Per Share from continuing operations of approximately $0.59. "Hanesbrands swings to Q2 profit as transformation plan pays off" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
