- Hanesbrands Inc (NYSE: HBI) reported a second-quarter FY22 sales decline of 14% year-on-year to $1.51 billion, missing the consensus of $1.69 billion.
- Innerwear sales decreased 12% Y/Y, Activewear sales fell 18%, and the International segment shed 3% on a constant currency basis.
- Global Champion brand sales decreased 20% over the prior year in constant currency, or 23% on a reported basis.
- Gross margin contracted 110 basis points Y/Y to 37.8%. Operating margin contracted 270 basis points to 9.7%, and operating income for the quarter fell 32.3% to $147 million.
- Inventories increased 37% Y/Y to $2.09 billion. The company held $248 million in cash and equivalents as of July 2, 2022.
- Cash flow from operations was a use of $(210) million driven primarily by working capital impact from a higher inventory.
- Adjusted EPS of $0.28 missed the analyst consensus of $0.33.
- Outlook: Hanesbrands sees Q3 FY22 sales of $1.73 billion - $1.78 billion versus the consensus of $1.81 billion. The company expects adjusted EPS of $0.27 - $0.32, versus the consensus of $0.49.
- For FY22, HBI sees sales of $6.45 billion - $6.55 billion (prior view $7.0 billion - $7.15 billion) versus the consensus of $6.85 billion.
- It sees an adjusted EPS of $1.11 - $1.23 (prior view $1.64 - $1.81), compared to the consensus of $1.59.
- Price Action: HBI shares are trading lower by 4.84% at $11.00 in premarket on the last check Thursday.
- Photo Via Company
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