HanesBrands reports Q2 earnings, revenues decline

HanesBrands’ net sales of US $ 995 million fell approximately 4 per cent, or 1 per cent on an organic constant currency basis, with better-than-anticipated innerwear sales in the United States largely offset by projected macroeconomic headwinds in Australia.

The loss for the quarter increased to nearly US $ 137 million, while adjusted income was US $ 53 million.

“We delivered solid second-quarter results in a challenging consumer and apparel market, including better-than-expected US innerwear performance and margin expansion,” said Steve Bratspies, HanesBrands CEO in a statement.

For the quarter, adjusted gross profit climbed by 11 per cent to US $ 396 million, while adjusted gross margin increased by almost 525 basis points to 30.8 per cent. Gross profit and gross margin were US $ 307 million and 30.8 per cent, respectively.

The operating margin was negative 6.3 per cent and the operating loss was negative US $ 63 million. The adjusted operating margin grew by 430 basis points to 12.7 per cent, while the adjusted operating profit jumped by 46 per cent to US $ 126 million.

Comparing the previous year to this one, the company’s US net sales dropped by 1 per cent. The company reported that during the quarter, its market share of pants increased by an additional 40 basis points. Its product lines for Maidenform M Innovate and Hanes Originals had significant year-over-year sales growth. Additionally, the business unveiled Bali Breathe, the largest innovation to support the brand in more than ten years.

In comparison to the previous year, international net sales declined by about 4 per cent on a reported basis but climbed by 2 per cent on a constant currency basis, with growth in the Americas and Asia more than offsetting the anticipated macroeconomic-driven decline in Australia.

The company presently projects net revenues of between US $ 3.59 billion and US $ 3.63 billion for the fiscal year 2024. At the halfway mark, this translates into a reported loss of about 4 per cent and an organic constant currency basis decrease of about 2 per cent.