HanesBrands (HBI) investor relations material

Executive summary

• Net sales for Q3 2025 were $892 million, down 1% year-over-year, with organic constant currency sales down 4.9%, primarily due to late-quarter order shifts and macroeconomic pressures.

• Operating profit increased 14% to $108 million, with operating margin rising to 12.1% from 10.4% in Q3 2024, driven by cost savings and disciplined expense management; adjusted operating profit was $116 million, up 3%.

• EPS surged to $0.76, up 986% year-over-year, driven by a $0.64 per share discrete tax benefit from the release of valuation allowances on U.S. deferred tax assets; adjusted EPS was $0.15, up 25%.

• Discontinued operations, including the global Champion business, U.S. outlet stores, and Champion Japan, resulted in a net loss of $1 million in Q3 2025.

• A definitive merger agreement was announced for acquisition by Gildan, with no further guidance provided due to the pending transaction.

Financial highlights

• Gross profit for Q3 2025 was $363 million, down 3% year-over-year, with gross margin at 40.8%, down 70 basis points.

• SG&A expenses decreased 8.4% year-over-year, supporting margin expansion.

• Interest and other expenses declined by $3 million to $55 million, reflecting lower debt balances.

• For the nine months ended September 27, 2025, net sales increased 1% to $2.64 billion, and operating profit rose to $342 million from $66 million in the prior year period.

• Net income for the nine months was $343 million, compared to a net loss of $308 million in the prior year period.

Outlook and guidance

• No forward guidance is being provided due to the pending Gildan transaction, but management believes the company is on track to meet its previously provided full-year 2025 EPS outlook.

• Management expects sufficient cash and available borrowings to support operations and key strategies for at least the next 12 months.

• The company continues to focus on cost savings, margin expansion, and debt reduction, with a target leverage ratio of two to three times net debt to adjusted EBITDA.