- Hanesbrands reported 1Q18 revenues of $1.47 billion, up 6.6% year over year and beating the $1.43 billion consensus estimate. Adjusted EPS was $0.26, down 10.3% from the year-ago quarter but above both the consensus estimate of $0.24 and the company’s guidance of $0.17–$0.20.
- By segment, the international business performed best, with sales up 19.4% year over year, followed by activewear, with sales up 5.7%. Innerwear sales were down 2.8% and sales in the company’s “other” segment were down 8.5%.
- Hanesbrands reiterated its FY18 net sales guidance of $6.7–$6.8 billion. In 2Q18, the company expects net sales of $1.7–$1.725 billion and adjusted EPS of $0.44–$0.46.
Hanesbrands reported 1Q18 revenues of $1.47 billion, up 6.6% year over year and beating the $1.43 billion consensus estimate. Adjusted EPS was $0.26, above the consensus estimate of $0.24 but down from $0.29 in the year-ago quarter.
By segment, the international business saw sales increase by 19.4% from the year-ago quarter, with the segment benefiting from foreign currency exchange rates, organic growth synergies from past acquisitions and contributions from the acquisition of Bras N Things in February 2018.
Sales in the US activewear segment increased by 5.7% in the quarter, benefiting from the acquisition of Alternative Apparel. Organic sales increased by 1% despite space constraints in the mass channel, and Champion sales increased by high single digits. Online sales of activewear increased by 26% in the quarter and represented 10% of the segment’s total sales.
The US innerwear segment saw sales decrease by 3%, while sales of innerwear basics decreased by less than 1%, with growth in socks and children’s underwear offset by declines in women’s underwear. The company introduced its Hanes Comfort Flex Fit men’s underwear boxer briefs during the quarter, and the product was met with positive consumer reception. Sales of innerwear intimates decreased by 7%, primarily affected by decreased shapewear sales and retailer store closings within the past year. Bra sales decreased by less than 2%, and trends are improving in this segment, management stated.
Hanesbrands reiterated its FY18 guidance calling for revenues of $6.7–$6.8 billion and adjusted EPS of $1.72–$1.80. The company’s guidance assumes a cautious outlook for the US brick-and-mortar environment.
The company expects 2Q18 revenues of $1.7–$1.725 billion, compared with the consensus estimate of $1.71 billion, and adjusted EPS of $0.44–$0.46, compared with the consensus estimate of $0.47.