NYSE$HBI

Hanesbrands Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Hanesbrands reported strong third-quarter results, executing its Full Potential growth plan and exceeding guidance for operating profit and EPS.

HanesBrands announced strong Q3 2021 results, with net sales of $1.79 billion, up 6% year-over-year, and adjusted EPS of $0.53. The company is maintaining its Q4 outlook for net sales and adjusted operating profit, driven by continued demand and a strong inventory position.

  • Net sales from continuing operations increased 6% year-over-year to $1.79 billion, and 18% excluding PPE sales.
  • GAAP EPS from continuing operations was $0.50, while adjusted EPS from continuing operations was $0.53.
  • Global Champion brand sales surged more than 33% year-over-year and 20% over third-quarter 2019.
  • U.S. Innerwear sales rose 12% year-over-year, excluding PPE, and 25% over third-quarter 2019.

Headline financials

Total Revenue

$1.79B

Previous: $1.81B-1.0%
EPS (adj)

$0.53

Previous: $0.42+26.2%
Gross Margin

39.1%

No prior period
Operating Margin

13.1%

Previous: 9.7%+35.1%
Net Income

$177M

Previous: $103M+71.1%
Operating Income

$235M

Previous: $175M+34.4%
Gross Profit

$700M

Previous: $617M+13.5%
Cash & Equivalents

$874M

Previous: $731M+19.4%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.79B

Q3 2021-1%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The Company is reiterating Q4 net sales and adjusted operating profit guidance, driven by consumer demand and strong inventory position.

Tailwinds

  • Net sales from continuing operations of approximately $1.71 billion to $1.78 billion, which represents approximately 3% growth over prior year at the midpoint.
  • Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 8% over the prior year period.
  • As compared to rebased fourth-quarter 2019, net sales at the midpoint are expected to increase 15%.
  • GAAP operating profit from continuing operations to range from approximately $182 million to $202 million.
  • Adjusted operating profit from continuing operations to range from approximately $200 million to $220 million.

Headwinds

  • The midpoint of adjusted operating profit represents an operating margin of approximately 12.0% and reflects the impact of cost inflation as well as increased brand investment.
  • Charges for actions related to Full Potential of approximately $18 million.
  • Interest and other expenses of approximately $40 million, which excludes an approximate $45 million charge related to the expected refinancing of the Company’s Senior Secured Credit Facility and the make-whole premium for the planned redemption of its $700 million 5.375% 2025 Senior Notes.
  • An effective tax rate of approximately 12% on both a GAAP and adjusted basis.
  • GAAP earnings per share from continuing operations to range from approximately $0.24 to $0.29.

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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