NYSE$HBI

Hanesbrands Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Hanesbrands' first quarter results for 2021 demonstrated growth across all segments due to strong brand performance and market share gains.

HanesBrands reported strong first-quarter 2021 results, with net sales from continuing operations increasing by 25% to $1.51 billion. Growth was driven by the global Champion brand and the U.S. Innerwear business. The company reported EPS from continuing operations of $0.37 and provided second-quarter and full-year guidance.

  • Net sales from continuing operations increased 25% year-over-year to $1.51 billion.
  • Growth was driven by the global Champion brand and U.S. Innerwear business.
  • EPS from continuing operations was reported at $0.37.
  • Global online sales grew more than 80%.

Headline financials

Total Revenue

$1.5B

Previous: $1.32B+14.0%
EPS (adj)

$0.39

Previous: $0.05+680.0%
Gross Margin

40.0%

No prior period
Operating Margin

12.6%

No prior period
Net Income

$128M

Previous: -$7.87M+1730.7%
Operating Income

$190M

Previous: $34.1M+457.1%
Gross Profit

$603M

Previous: $474M+27.2%
Cash & Equivalents

$530M

Previous: $1.08B-51.1%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.5B

Q1 2021+14%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company provided financial outlook for the second quarter and full year 2021.

Tailwinds

  • Net sales from continuing operations for Q2 are expected to be approximately $1.56 billion to $1.59 billion.
  • Q2 net sales, excluding PPE, are expected to increase 69% over prior year period.
  • GAAP operating profit from continuing operations for Q2 is expected to range from approximately $179 million to $189 million.
  • Adjusted operating profit from continuing operations for Q2 is expected to range from approximately $200 million to $210 million.
  • Adjusted earnings per share from continuing operations for Q2 is expected to range from $0.37 to $0.40.

Headwinds

  • The company expects a modest amount of sales from one-time benefits, including retailer restocking and stimulus-related spending, to continue into the second quarter, but the benefit is expected to be significantly lower than first-quarter levels.
  • The company's guidance for the second half of 2021 does not assume any additional stimulus or inventory restocking benefits.
  • The midpoint of adjusted operating profit implies an operating margin of approximately 13.0% and reflects the impact of inflation, particularly transportation, as well as increased brand investment.
  • Charges for actions related to Full Potential of approximately $21 million for Q2.
  • Interest and Other expenses of approximately $45 million for Q2.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-1.7%

Avg return

Earnings day

+1.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+17.2%

Q4 2020

Best reaction

-24.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025-3.3%-2.6%
Q2 2025+11.8%+48.3%+54.1%
Q1 2025+4.1%+10.0%+2.3%
Q4 2024-18.5%-20.6%-23.4%
Q3 2024+12.7%+12.4%+19.2%
Q2 2024+17.1%+16.3%+21.5%
Q1 2024+11.2%+11.0%+16.4%
Q4 2023-9.3%-3.8%+20.4%
Q3 2023-4.7%-1.4%-8.5%
Q2 2023+4.3%+3.4%-11.1%
Q1 2023-11.2%-11.6%-10.2%
Q4 2022-24.8%-31.3%-33.2%
Q3 2022-4.0%+3.8%-10.3%
Q2 2022-8.6%-3.4%-20.5%
Q1 2022-11.1%-14.0%-16.9%
Q4 2021-0.5%+0.9%-2.2%
Q3 2021-1.6%-1.2%-9.9%
Q2 2021+8.1%
Q1 2021-14.3%
Q4 2020+17.2%
Q3 2020-21.5%
Q2 2020-3.5%
Q1 2020-7.8%
Q4 2019-3.7%
Q3 2019-3.4%
Q2 2019-5.8%
Q1 2019-1.8%
Q4 2018+14.6%
Q3 2018-7.0%
Q2 2018-17.9%
Q1 2018-6.4%
Q4 2017-12.3%
Q3 2017-10.8%
Q2 2017+3.2%
Q1 2017-5.0%
Q4 2016-18.3%
Q3 2016+7.9%
Q2 2016-5.8%
Q1 2016+1.3%
Q4 2015-18.0%
Q3 2015+17.0%
Q2 2015-8.0%
Q1 2015-5.6%
Q4 2014-2.7%
Q3 2014-3.2%
Q2 2014+3.3%
Q1 2014+6.1%
Q4 2013+13.0%
Q3 2013+6.3%
Q2 2013+6.1%
Q1 2013+3.0%
Q4 2012+4.1%
Q3 2012-1.6%
Q2 2012+4.8%
Q1 2012+10.3%
Q4 2011+0.6%
Q3 2011-1.2%
Q2 2011+1.3%
Q4 2009-1.9%
Q1 2011+0.8%
Q3 2010-5.5%
Q4 2010-2.4%
Q2 2010-2.4%
Q1 2010-1.8%

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