Hanesbrands stock falls after profit topped expectations but revenue missed, and outlook was well below forecasts
Shares of Hanesbrands Inc. dropped 3.0% in premarket trading Wednesday, after the apparel company, with brands including Hanes and Champion, reported third-quarter profit that topped forecasts but revenue that missed and provided a downbeat outlook, citing a "tougher-than-expected" sales environment. Net income fell to $80.1 million, or 23 cents a share, from $151.8 million, or 43 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 29 cents beat the FactSet consensus of 27 cents. Sales declined 6.6% to $1.67 billion, below the FactSet consensus of $1.70 billion. Innerwear sales fell 11%, as hurt by macroeconomic pressures that weighed on consumer spending and retailer actions to manage inventory. Activewear sales were relatively flat, while international sales decreased 6%. Gross margin contracted to 33.7% from 39.1%, hurt by commodity and ocean freight inflation. The value of inventories was $2.14 billion as of Oct. 1, up 34.9% from Jan. 1. For the fourth quarter, the company expects adjusted EPS of 4 cents to 11 cents, below the FactSet consensus of 21 cents, and expects sales of $1.40 billion to $1.45 billion, below expectations of $1.6 billion. The stock has plunged 37.2% over the past three months through Tuesday while the S&P 500 has lost 7.1%.
-Tomi Kilgore
(END) Dow Jones Newswires
November 09, 2022 07:35 ET (12:35 GMT)
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