NYSE$HBI

Hanesbrands Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Hanesbrands announced strong second-quarter 2021 results, exceeding guidance for revenue, operating profit, operating margin, and EPS from continuing operations.

HanesBrands reported strong second-quarter 2021 results with increased sales, operating profit, and cash flow, driven by strong performance across its global innerwear and activewear businesses. Net sales from continuing operations totaled $1.75 billion, up 13% over the prior year and 15% over second-quarter 2019. The company raised its second-half and full-year 2021 guidance for net sales, operating profit, and EPS from continuing operations.

  • Net sales from continuing operations of $1.75 billion, up 13% over prior year; up 15% over second-quarter 2019
  • GAAP EPS from continuing operations of $0.42; adjusted EPS from continuing operations of $0.47
  • Growth driven by global Champion brand and U.S. Innerwear
  • Global Champion sales up more than 120% over prior year and 21% over second-quarter 2019

Headline financials

Total Revenue

$1.75B

Previous: $1.74B+0.7%
EPS (adj)

$0.47

Previous: $0.60-21.7%
Gross Margin

38.9%

No prior period
Operating Margin

12.4%

Previous: 13.9%-10.8%
Net Income

$148M

Previous: $161M-8.2%
Operating Income

$217M

Previous: $242M-10.2%
Gross Profit

$682M

Previous: $633M+7.7%
Cash & Equivalents

$667M

Previous: $683M-2.3%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.75B

Q2 2021+0.7%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

For third-quarter 2021, Hanesbrands expects net sales from continuing operations of approximately $1.78 billion to $1.81 billion, GAAP EPS from continuing operations to range from $0.42 to $0.45 and Adjusted EPS from continuing operations to range from $0.45 to $0.48.

Tailwinds

  • Net sales from continuing operations of approximately $1.78 billion to $1.81 billion, which represents approximately 6% growth over prior year at the midpoint and includes a projected benefit of approximately $16 million from changes in foreign currency exchange rates.
  • Excluding PPE, net sales at the midpoint of the guidance range are expected to increase 19% over the prior year period.
  • As compared to rebased third-quarter 2019, net sales at the midpoint are expected to increase 11%.
  • GAAP operating profit from continuing operations to range from approximately $216 million to $226 million.
  • Charges for actions related to Full Potential of approximately $19 million.

Headwinds

  • Adjusted operating profit from continuing operations to range from approximately $235 million to $245 million. The midpoint of adjusted operating profit implies an operating margin of approximately 13.4% and reflects the impact of cost inflation as well as increased brand investment.
  • This compares to an adjusted operating margin of 14.3% in the third-quarter of 2020, which benefited from temporary COVID-driven cost reductions.
  • Interest and Other expenses of approximately $45 million.
  • An effective tax rate of approximately 12% on a GAAP basis and approximately 15% on an adjusted basis.
  • GAAP earnings per share from continuing operations to range from $0.42 to $0.45.

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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