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HanesBrands posts 5 percent sales growth in Q1

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HanesBrands posts 5 percent sales growth in Q1

First quarter net sales of 1.58 billion dollars increased 68 million dollars or 5 percent at HanesBrands, over prior year. Excluding the 30 million unfavourable impact from foreign exchange rates, net sales increased 7 percent.

The company said consumer demand for the company’s brands drove growth in the U.S., Americas and Europe. Global Champion brand sales increased 6 percent in constant currency or 3 percent on a reported basis.

“I’m very proud of our team for delivering another strong quarter in an incredibly challenging time as we exceeded expectations for sales and earnings per share,” said Steve Bratspies, CEO of HanesBrands in a release, adding, “We saw continued strong demand for our brands in the quarter, with global Champion and innerwear growth accelerating on a two-year basis.”

Review of HanesBrands’s Q1 results

By geography, Champion sales internationally increased 10 percent in constant currency, or 4 percent on a reported basis, and increased 2 percent in the U.S. U.S. Innerwear sales increased 1.5 percent over prior year.

Gross profit of 584 million dollars declined 3 percent as compared to prior year. Gross margin was 37.1 percent, down from 40 percent in the prior year. Adjusted gross profit was 585 million dollars compared to 605 million dollars last year, while adjusted gross margin of 37.1 percent declined approximately 305 basis points compared to prior year.

Operating profit and operating margin were 171 million dollars and 10.8 percent, respectively compared to 190 million dollars and 12.6 percent, respectively, in the prior year. Adjusted operating profit of 175 million dollars declined 34 million dollars and adjusted operating margin of 11.1 percent.

Income totalled 114 million dollars or 32 cents per diluted share compared to income from continuing operations of 128 million dollars or 37 cents per diluted share, last year. Adjusted income from continuing operations totaled 118 million dollars or 34 cents per diluted share. This compares to adjusted income from continuing operations of 136 million dollars or 39 cents per diluted share, in first-quarter 2021.

HanesBrands announces Q2 and FY22 outlook

For second-quarter 2022, which ends on July 2, 2022, the company currently expects net sales from continuing operations of approximately 1.68 billion dollars to 1.73 billion dollars, which includes a projected headwind of approximately 40 million dollars from changes in foreign currency exchange rates. At the midpoint, this represents net sales consistent with prior year on a constant currency basis, or down 3 percent on a reported basis.

GAAP operating profit from continuing operations to range from approximately 155 million to 175 million dollars, adjusted operating profit from continuing operations to range from approximately 170 million to 190 million dollars. The midpoint of adjusted operating profit represents an operating margin of approximately 10.5 percent.

GAAP earnings per share from continuing operations to range from approximately 28 cents to 32 cents, while adjusted earnings per share from continuing operations to range from approximately 32 cents to 36 cents.

For fiscal-year 2022, which ends on December 31, 2022, the company currently expects net sales from continuing operations of approximately 7 billion dollars to 7.15 billion dollars, which includes a projected headwind of approximately 125 million dollars from changes in foreign currency exchange rates. At the midpoint, this represents approximately 6 percent growth over prior year on a constant currency basis and 4 percent growth on a reported basis.

GAAP operating profit from continuing operations to range from approximately 780 million dollars to 850 million dollars, adjusted operating profit to range from approximately 840 million to 910 million dollars.

GAAP earnings per share to range from approximately 1.50 dollars to 1.67 dollars and adjusted earnings per share to range from approximately 1.64 dollars to 1.81 dollars.

https://fashionunited.uk/uncategorised/hanesbrands-posts-5-percent-sales-growth-in-q1/2022050562929

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