• Q1 earnings down 19.1%
  • Margins narrow to 33.7%
  • Sales climb 12%
Earnings dropped 19.1% to $41.6m during the first quarter

Earnings dropped 19.1% to $41.6m during the first quarter

Apparel group Hanesbrands saw its earnings tumble in the first quarter but minus acquisition costs, profits beat analyst expectations.

In the three months ended 29 March, earnings dropped 19.1% to US$41.6m from $51.4m a year earlier as the apparel maker recorded higher expenses.

Excluding acquisition-related costs and other items, adjusted earnings from continuing operations rose to $0.76 per share. This beat estimates from analysts polled by Thomson Reuters, which predicted earnings of $0.58 per share.

Gross margin narrowed to 33.7% from 34.6%, as cost of sales rose 14% to $702.

Sales in the quarter were up 12% to $1.06bn thanks to increased margins, strong activewear segment results, increased supply chain operating efficiencies, and tighter cost control.

On the back of this, the company upped its full-year earnings guidance. It now expects adjusted EPS of $4.80 to $5.00, up $0.20. Sales are expected to be slightly less than $5.1bn.

Hanesbrands says the company will benefit this fiscal from its acquisition of Maidenform Brands Inc.