US: Hanesbrands raises guidance as Q2 earnings climb
- Q2 earnings up 27.1%
- Gross margin improves 160 bps
- Sales grow 12%
Hanesbrands raised its full-year adjusted EPS guidance
Underwear maker Hanesbrands Inc has raised its full-year guidance as it revealed second-quarter earnings that beat analyst estimates.
The company posted earnings of US$154.6m, or $1.71 per share, in the three months ended 28 June. This was a 27.1% increase on profit of $121.6m in the prior year period, and beat FBR & Co analyst estimates of EPS of $1.58/$1.50.
The growth was thanks to acquisition benefits, a strong Activewear performance, and increased supply chain manufacturing efficiencies.
This resulted in an adjusted gross margin improvement of 160 basis points to 17.2%.
Sales in the quarter increased 12% to $1.34bn, boosted by the contribution of Maidenform Brands, which it acquired in October last year.
As a result, the company raised its full-year adjusted EPS guidance by $0.40 to $5.20 to $5.40, and refined its expectations for net sales for the year to around $5.07bn.
FBR & Co analyst Susan Anderson noted: "Beyond 2014, we believe that MFB/DBApparel acquisition benefits, use of free cash flow, and cotton price deflation will continue to drive shareholder value and upside. We reiterate our outperform rating for HBI and its status as our top pick."
Click here for further insight on Hanesbrand's second-quarter results.
Canadean's "Delta Galil Industries Ltd. - Company Capsule" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major produc...
Strong international sales, fuelled by acquisitions, helped apparel group Hanesbrands to nearly treble third-quarter profit on a double-digit sales increase....
This report analyzes the worldwide markets for Hosiery (Women and Men) both in value (US$) and in volume (Pairs) by the following Product Segments: Socks, Sheer Hosiery, and Tights/Opaques....
- Speed to market key to Adidas 2020 growth plan
- SuperGroup to adapt sourcing model for speed
- SOURCING: Production problems weigh on Pakistan
- PSF 2015: GAFTI gears for change in apparel auditi
- Cutting-edge companies focus on consumer needs
- Transparency call for German apparel firms
- Lululemon Athletica on “strong growth” track
- Strike at Adidas and Nike shoe factory in Vietnam
- El Corte Ingles to accelerate time to market
- Honduras “union-busting” rift unresolved
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Global market review of swimwear - forecasts to 2019