NYSE$HBI

Hanesbrands Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hanesbrands' Q4 2023 performance was below expectations due to a challenging sales environment, but exceeded year-end goals for key performance metrics.

Hanesbrands reported Q4 2023 sales of $1.3 billion, with a GAAP EPS of $0.22 and adjusted EPS of $0.03. The company exceeded year-end goals for gross margin, inventory, operating cash flow, and debt reduction. Despite a challenging sales environment, U.S. Innerwear gained market share, driven by new products and permanent retail space gains.

  • Gross margin increased 400 basis points compared to the prior year.
  • Inventory ended the year below $1.4 billion, a 31% year-over-year improvement.
  • Operating cash flow was $562 million for the full year.
  • Debt was reduced by more than $500 million in 2023.

Headline financials

Total Revenue

$1.3B

Previous: $1.47B-12.0%
EPS (adj)

$0.03

Previous: $0.07-57.1%
Gross Margin

38.1%

Previous: 34.1%+11.7%
Operating Margin

7.4%

Previous: 4.1%+80.5%
Capital Expenditures

-$8.27M

Previous: $41.2M-120.1%
Net Income

$77.9M

Previous: -$418M+118.6%
Operating Income

$96.1M

Previous: $60.3M+59.3%
Gross Profit

$494M

Previous: $502M-1.7%
Stock-Based Comp

$20.5M

Previous: $23.5M-12.4%

Revenue & EPS history

Hanesbrands · Revenue · Quarterly

$1.3B

Q4 2023-12%vs Q4 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in the fourth quarter of 2022.

Tailwinds

  • Net sales from continuing operations of approximately $5.35 billion to $5.47 billion
  • GAAP operating profit from continuing operations of approximately $430 million to $450 million.
  • Adjusted operating profit from continuing operations of approximately $500 million to $520 million.
  • GAAP earnings per share from continuing operations of approximately $0.22 to $0.28.
  • Adjusted earnings per share from continuing operations of approximately $0.42 to $0.48.

Headwinds

  • Net sales from continuing operations of approximately $1.13 billion to $1.19 billion
  • GAAP operating profit from continuing operations of approximately $45 million to $65 million.
  • Adjusted operating profit from continuing operations of approximately $60 million to $80 million.
  • GAAP loss per share from continuing operations of approximately $(0.14) to $(0.08).
  • Adjusted loss per share from continuing operations of approximately $(0.10) to $(0.04).

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 Q4 2023

Historical avgQ4 2023

-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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