NYSE$HBI

Hanesbrands Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Hanesbrands reported strong sales, operating profit and cash flow on improving business trends.

Hanesbrands' Q3 2020 results showed resilience with net sales of $1.81 billion, driven by U.S. Innerwear and global Champion sales. GAAP EPS was $0.29, and adjusted EPS was $0.42. The company generated $249 million in operating cash flow and reduced debt by $130 million.

  • Net sales for the third quarter were $1.81 billion.
  • U.S. Innerwear sales increased 8.4% over last year, excluding protective garments.
  • Global Champion net sales more than doubled over previous quarter.
  • The company delivered $249 million of operating cash flow.

Headline financials

Total Revenue

$1.81B

Previous: $1.87B-3.2%
EPS (adj)

$0.42

Previous: $0.54-22.2%
Operating Margin

9.7%

Previous: 14.3%-32.2%
Capital Expenditures

$2.52M

Previous: $21.7M-88.4%
Free Cash Flow

$246M

Previous: $280M-12.1%
Net Income

$103M

Previous: $188M-45.0%
Operating Income

$175M

Previous: $270M-35.3%
Gross Profit

$617M

Previous: $712M-13.4%
Cash & Equivalents

$731M

Previous: $317M+130.7%
Total Assets

$8.16B

Previous: $7.72B+5.6%
Stock-Based Comp

$4.61M

Previous: $1.55M+198.1%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.81B

Q3 2020-3.2%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

For the fourth-quarter 2020, net sales are expected to be approximately $1.60 billion to $1.66 billion. GAAP earnings per share is expected to range from $0.24 to $0.29 and adjusted EPS is expected to range from $0.25 to $0.30.

Tailwinds

  • Net sales are expected to be approximately $1.60 billion to $1.66 billion.
  • Sales outlook includes approximately $50 million of protective garment sales and approximately $10 million of foreign exchange benefit.
  • GAAP operating profit is expected to range from $154 million to $174 million.
  • Adjusted operating profit is expected to range from $160 million to $180 million.
  • GAAP earnings per share is expected to range from $0.24 to $0.29 and adjusted EPS is expected to range from $0.25 to $0.30.

Headwinds

  • The company’s outlook for the fourth quarter reflects continued uncertainty due to the COVID-19 pandemic and is based on the current business environment, including the recently implemented COVID-related restrictions in Europe.
  • The guidance does not reflect any potential impact to the consumer or operating environments should governments or businesses institute additional lockdowns and store closings.
  • Negative manufacturing variances are expected to pressure both gross and operating margins in the fourth quarter.
  • Higher SG&A expense are expected to pressure both gross and operating margins in the fourth quarter.
  • The midpoint of guidance represents a net sales decline of 7% compared with 2019.

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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