HanesBrands (HBI) Tops Q2 EPS by 67c, Revenues Beat

HanesBrands (NYSE: HBI) reported Q2 EPS of $0.60, $0.67 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $1.74 billion versus the consensus estimate of $1.17 billion.

• Employees rise to meet pandemic challenges globally with safety-first manufacturing, distribution and selling to mitigate COVID-19 market disruptions
• 2Q GAAP EPS increases 12% to $0.46; Adjusted EPS increases 58% to $0.60
• 2Q net sales of $1.74 billion driven by better-than-base-case-scenario apparel sales, including increasing point-of-sale trends and market-share gains, and better-than-expected new personal protective garments business
• 2Q net cash from operations of $65 million; year-to-date operating cash flow $40 million better than a year ago
• Quarter-end liquidity of approximately $1.8 billion provides continued balance sheet strength and operational flexibility

“The HanesBrands organization did a phenomenal job overcoming significant challenges in order to mitigate the effects of the global pandemic,” said Hanes Chief Executive Officer Gerald W. Evans Jr. “The professionalism, ingenuity and dedication of our worldwide employees was on display in generating double-digit EPS growth, establishing a new protective garments business line from scratch, and starting the reopening of manufacturing, distribution and selling in the most safe and effective manner possible.

“Despite the effects of pandemic-caused disruptions to global economies, our business is in great shape. We performed significantly better than our base-case scenario in both our apparel business and our new protective garment business. Point-of-sale trends are improving for apparel, and in the case of U.S. Innerwear basics and U.S. Champion, point-of-sale trends in May and June were higher than pre-COVID levels.

“Our brands are strong, and we are gaining market share and building momentum. Our liquidity remains strong allowing us to maintain our quarterly cash dividend and have ample operating flexibility. While there is still near-term uncertainty concerning the ongoing economic impact of the COVID-19 pandemic, we believe we are positioned to drive growth and seize opportunities over the next several years.”

For earnings history and earnings-related data on HanesBrands (HBI) click here.

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