NYSE$HBI

Hanesbrands Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Hanesbrands reported first-quarter results in-line with its outlook, generated positive cash flow, and reiterated its full-year outlook.

HanesBrands Inc. announced first-quarter 2023 results, reporting net sales, operating profit, and EPS from continuing operations within its guidance range. The company generated positive cash flow and sequentially reduced inventory during the quarter. It also provided second-quarter 2023 guidance and reiterated its full-year outlook, including the expectation to exit the year with lower inventory, lower debt, and meaningfully higher gross and operating margin run-rates.

  • Generated positive free cash flow and sequentially reduced inventory.
  • Expanded innovation globally with the launch of Bonds Whoopsies toddler training underwear in Australia and expanded distribution of Hanes Originals in the U.S.
  • Successfully refinanced its 2024 maturities with a $900 million senior secured term loan B facility due in 2030 and $600 million of senior unsecured notes due in 2031.
  • Net sales from continuing operations were $1.39 billion, a decrease of 12% compared to last year.

Headline financials

Total Revenue

$1.39B

Previous: $1.58B-11.9%
EPS (adj)

-$0.06

Previous: $0.34-117.6%
Gross Margin

32.4%

Previous: 37.1%-12.7%
Operating Margin

4.1%

Previous: 10.8%-62.0%
Capital Expenditures

$24.2M

Previous: $19.3M+25.4%
Free Cash Flow

$20.3M

Previous: -$251M+108.1%
Net Income

-$34.4M

Previous: $60M-157.3%
Operating Income

$57.3M

Previous: $156M-63.2%
Gross Profit

$450M

Previous: $668M-32.7%
Cash & Equivalents

$213M

Previous: $369M-42.3%
Total Assets

$6.43B

Previous: $6.86B-6.2%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.39B

Q1 2023-11.9%vs Q1 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

For second-quarter 2023, Hanesbrands expects net sales of approximately $1.42 billion to $1.47 billion, GAAP operating profit of approximately $55 million to $75 million, and GAAP loss per share from continuing operations to range from approximately $0.09 to $0.04.

Tailwinds

  • The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in the fourth quarter of 2022.
  • Importantly, the reserve does not impact cash taxes.
  • Some portion of the reserve may reverse in future periods.
  • Cash flow from operations outlook, as calculated under GAAP $500,000
  • Capital expenditures outlook $70,000

Headwinds

  • A muted consumer demand environment given the continued macroeconomic uncertainty
  • First-half margin pressure as it continues to sell through its higher-cost inventory
  • Year-over-year improvement in second-half margins, particularly the fourth quarter, as lower-cost inventory currently being produced is sold and it anniversaries last year’s manufacturing time-out costs related to its inventory reduction initiative in 2022.
  • GAAP loss per share from continuing operations to range from approximately $0.09 to $0.04.
  • Fully diluted shares outstanding of approximately 351 million.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-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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