HanesBrands (HBI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were $937 million, at the midpoint of guidance, with operating profit and EPS exceeding the high end of expectations.

• Raised Q4 and full-year outlook for operating profit, EPS, and cash flow due to improved cost visibility and debt reduction.

• Completed sale of the global Champion business, generating $857 million in proceeds and paying down approximately $870 million of debt post-quarter, on track for $1 billion reduction in H2 2024.

• Strategic actions, including restructuring and supply chain consolidation, have led to a more focused, simplified business with consistent top-line growth and higher margins.

• Significant restructuring and supply chain initiatives are underway to drive further margin expansion.

Financial highlights

• Q3 net sales were $937 million, down 2.5–3% year-over-year, but flat on an organic, constant-currency basis.

• Operating profit increased 27–46% year-over-year, with margin improving to 11.0–13.0%.

• EPS rose to $0.15 (adjusted) and $0.09 (GAAP) from a loss of $0.02; net income was $30 million versus a $39 million loss last year.

• Gross margin reached a record 41.8%, up 525 basis points year-over-year.

• Cash flow from operations was $92 million for Q3 and nearly $200 million year-to-date.

Outlook and guidance

• Q4 2024 net sales expected at $900 million, up 2–3% year-over-year on an organic constant-currency basis.

• Q4 operating profit projected to rise 17% to $115 million; operating margin to expand to 12.8%.

• Q4 EPS expected to increase over 130% to $0.14.

• FY2024 net sales expected at $3.61 billion, down 4% reported and 2% organic constant currency.

• FY2024 cash flow from operations expected at $250 million; free cash flow at $210 million.