NYSE$HBI
Hanesbrands Inc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Hanesbrands' fourth quarter results were inline with guidance, concluding a successful year with record operating cash flow and reduced debt.
Hanesbrands reported solid fourth-quarter results with net sales of $1.75 billion and GAAP EPS of $0.51. The company generated record net cash from operations and significantly reduced its debt leverage.
- Net sales of $1.75 billion decreased 1%, while constant-currency organic sales increased slightly.
- GAAP EPS and adjusted EPS were each $0.51, increases of 24% and 13%, respectively.
- Net debt was reduced to 2.9 times adjusted EBITDA with debt reduction of $460 million.
- The company expects to create meaningful shareholder value using its strong balance sheet.
Headline financials
Revenue & EPS history
Hanesbrands · Revenue · Quarterly
$1.75B
Forward guidance
Hanes has issued initial 2020 guidance for the fiscal year ending Jan. 2, 2021, which includes a 53rd week. The company expects 2020 net sales of $6.675 billion to $6.775 billion, GAAP operating profit of $850 million to $880 million, adjusted operating profit excluding actions of $900 million to $930 million, GAAP EPS of $1.60 to $1.68, adjusted EPS excluding actions of $1.72 to $1.80, and net cash from operations of $700 million to $800 million.
Tailwinds
- The company continues to expect growth for its underlying business on a rebased basis when isolating program exits.
- Full-year net sales are expected to increase 3%.
- Adjusted operating profit is expected to increase 7%.
- Adjusted EPS is expected to increase 15%.
- Global Champion sales growth of approximately 10% for the year with growth in Asia, Australia, Europe and the United States is expected.
Headwinds
- The company expects foreign currency exchange rates to reduce net sales by approximately $25 million for the full year compared with 2019.
- GAAP operating profit in 2020 is expected to be reduced by approximately $50 million for pretax charges for restructuring and other actions.
- Hanes expects interest expense and other expenses to be approximately $185 million combined for the year.
- The company expects capital expenditure investment of approximately $100 million.
- U.S. Activewear net sales, at the midpoint of 2020 guidance, are expected to decrease by approximately 17% for both the full year and the first quarter as a result of the C9 Champion program exit at mass retail.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 15 quarterly earnings reports
-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
| Quarter | Report date | Reaction (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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