Hanesbrands Cuts FY22 Outlook After Mixed Q3 Results

Hanesbrands Inc HBI reported a third-quarter FY22 sales decline of 7% year-on-year to $1.67 billion, missing the consensus of $1.71 billion.
The constant currency sales decline of 3% was due to the macro-driven slowdown in consumer spending in the U.S. and certain Asian markets.
Innerwear sales decreased 11% Y/Y due to macroeconomic pressures that weighed on consumer spending as well as the impact from retailer actions to manage inventory. Activewear sales were comparable to prior year.
Global Champion brand sales decreased 9% over the prior year in constant currency, or 14% on a reported basis.
Gross margin contracted 540 basis points Y/Y to 33.7%. Operating margin contracted 460 basis points to 8.5%, and operating income for the quarter fell 40% to $141 million.
Inventories increased 31% Y/Y to $2.14 billion. The company held $253 million in cash and equivalents as of October 1, 2022.
Cash flow from operations was a use of $(51) million, driven primarily by the working capital impact from higher inventory.
Adjusted EPS of $0.29 beat the analyst consensus of $0.27.
The company's regular cash dividend of $0.15 per share is payable on December 13, 2022, to stockholders of record on November 22, 2022.
Outlook: Hanesbrands sees Q4 FY22 sales of $1.4 billion - $1.45 billion versus the consensus of $1.63 billion. The company expects adjusted EPS of $0.04 - $0.11 versus the consensus of $0.21.
For FY22, HBI sees sales of $6.16 billion - $6.21 billion (prior view $6.45 billion - $6.55 billion) versus the consensus of $6.42 billion.
It sees an adjusted EPS of $0.95 - $1.02 (prior view $1.11 - $1.23), compared to the consensus of $1.11.
Price Action: HBI shares are trading lower by 5.23% at $6.71 on the last check Tuesday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga