NYSE$HBI

Hanesbrands Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second-quarter results fell below expectations due to unexpected events and a difficult global operating environment.

HanesBrands' second-quarter net sales decreased by 14% to $1.51 billion, impacted by a cyber event and softer point-of-sale trends. GAAP EPS was $0.26, and adjusted EPS was $0.28. The company is updating its full-year guidance to reflect changes in foreign currency exchange rates, costs associated with inventory reduction, and slow consumer demand.

  • Net sales decreased 14% versus prior year, but increased 75% on a two-year stack basis excluding PPE.
  • GAAP EPS was $0.26; adjusted EPS was $0.28.
  • The cyber event had a negative impact on net sales, adjusted operating profit, and EPS of approximately $100 million, $35 million, and $0.08, respectively.
  • The company continues progress on its Full Potential growth strategy.

Headline financials

Total Revenue

$1.51B

Previous: $1.75B-13.6%
EPS (adj)

$0.28

Previous: $0.47-40.4%
Gross Margin

37.8%

Previous: 38.9%-2.8%
Operating Margin

9.7%

Previous: 12.4%-21.8%
Capital Expenditures

$18.6M

No prior period
Free Cash Flow

-$228M

No prior period
Net Income

$93M

Previous: $148M-37.2%
Operating Income

$147M

Previous: $217M-32.3%
Gross Profit

$572M

Previous: $682M-16.1%
Cash & Equivalents

$248M

Previous: $667M-62.8%
Total Assets

$7.09B

No prior period

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.51B

Q2 2022-13.6%vs Q2 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

The Company has taken a more prudent view of its second-half net sales and profit outlook to reflect the changes in foreign currency exchange rates; short-term costs associated with actions to reduce inventory by year-end; and an assumption that slow consumer demand continues and the retail environment remains challenging.

Tailwinds

  • Net sales from continuing operations of approximately $1.73 billion to $1.78 billion for Q3 2022.
  • GAAP operating profit from continuing operations to range from approximately $129 million to $149 million for Q3 2022.
  • Adjusted operating profit from continuing operations to range from approximately $160 million to $180 million for Q3 2022.
  • GAAP earnings per share from continuing operations to range from approximately $0.20 to $0.25 for Q3 2022.
  • Adjusted earnings per share from continuing operations to range from approximately $0.27 to $0.32 for Q3 2022.

Headwinds

  • Net sales from continuing operations of approximately $6.45 billion to $6.55 billion for fiscal year 2022.
  • GAAP operating profit from continuing operations to range from approximately $570 million to $620 million for fiscal year 2022.
  • Adjusted operating profit from continuing operations to range from approximately $630 million to $680 million for fiscal year 2022.
  • GAAP earnings per share from continuing operations to range from approximately $0.97 to $1.09 for fiscal year 2022.
  • Adjusted earnings per share from continuing operations to range from approximately $1.11 to $1.23 for fiscal year 2022.

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 Q2 2022

Historical avgQ2 2022

-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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