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HanesBrands (HBI) Updates 2022 View on Bright Q4 Performance
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HanesBrands Inc. (HBI - Free Report) unveiled that it now anticipates delivering fourth-quarter 2022 net sales slightly above the upper end of its previously provided range. Also, management expects adjusted operating profit to come in at the midpoint of the guidance range.
For fourth-quarter 2022, net sales from continuing operations are expected to be $1.40- $1.45 billion. Adjusted operating profit from continuing operations is expected in the range of $70- $100 million. HanesBrands expects adjusted earnings per share (EPS) from continuing operations are envisioned in the 4-11 cents range for the fourth quarter,
Management highlighted that it is impressed with the fourth quarter net sales and adjusted operating profit performance amid a volatile macro environment wherein 2022 inventories ended below the prior year’s level.
HanesBrands also announced that its chief financial officer (CFO), Michael Dastugue resigned effective Feb 28, 2023. Meanwhile, Scott Lewis, the chief accounting officer and controller, will serve as the interim CFO.
Image Source: Zacks Investment Research
What’s More?
The Zacks Rank #3 (Hold) company is progressing well with its Full Potential plan, which was unveiled in May 2021. The plan includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. With respect to growing Champion and reigniting growth in Innerwear, management is undertaking a two-pronged approach to energize the core and add more. To energize the core, the company is focusing on undertaking consumer-driven product design by delivering category-leading innovation and improving on-shelf execution at retail. Hanesbrands is also driving growth by adding more, evident from its focus on discipline brand management. In the third quarter of 2022, Hanesbrands progressed well with its Full Potential growth strategy, especially around innovation, supply-chain optimization and talent.
Hanesbrands continues to invest in the Champion brand globally. Management is seeing significant growth opportunities as it expands women's and kids businesses for the brand. The company is on track to execute its full potential supply chain strategies to remain competitive and balance speed, cost and flexibility to boost top-line growth and increase margins over time. Management has been streamlining the portfolio, shedding non-core lower-margin businesses and lowering skews for business simplification. The company is focused on lowering SKUs.
Efforts to bolster brands via robust innovations are likely to keep supporting Hanesbrands. The company has a strong Innerwear innovation pipeline, per the third-quarter earnings call. Management has been rolling out new product innovations across men's and women's category with an impressive pipeline extending beyond 2023. The company is on track with its innovation ideas across basics and intimates brands.
HBI’s shares have increased 3.1% in the past three months compared with the industry’s growth of 18.5%.
Stocks to Consider
Some better-ranked companies from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , PVH Corp. (PVH - Free Report) and Oxford Industries (OXM - Free Report)
Ralph Lauren presently sports a Zacks Rank #1(Strong Buy). The company has a trailing four-quarter earnings surprise of 28.7%, on average. RL has an expected long-term earnings growth rate of 4.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales suggests growth of 0.1% from the year-ago period’s reported numbers, while the EPS estimate indicates a decline of 7.5%.
PVH Corp currently carries a Zacks Rank #2 (Buy). PVH has a trailing four-quarter earnings surprise of 22.9%, on average. PVH has a long-term earnings growth rate of 10.2%.
The Zacks Consensus Estimate for PVH Corp’s current financial-year sales and EPS indicates declines of 3.1% and 18.6%, respectively, from the year-ago period’s reported levels.
Oxford Industries currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 18.9%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial-year sales and earnings suggests growth of 23.1% and 34.2% from the year-ago period’s reported numbers, respectively.
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HanesBrands (HBI) Updates 2022 View on Bright Q4 Performance
HanesBrands Inc. (HBI - Free Report) unveiled that it now anticipates delivering fourth-quarter 2022 net sales slightly above the upper end of its previously provided range. Also, management expects adjusted operating profit to come in at the midpoint of the guidance range.
For fourth-quarter 2022, net sales from continuing operations are expected to be $1.40- $1.45 billion. Adjusted operating profit from continuing operations is expected in the range of $70- $100 million. HanesBrands expects adjusted earnings per share (EPS) from continuing operations are envisioned in the 4-11 cents range for the fourth quarter,
Management highlighted that it is impressed with the fourth quarter net sales and adjusted operating profit performance amid a volatile macro environment wherein 2022 inventories ended below the prior year’s level.
HanesBrands also announced that its chief financial officer (CFO), Michael Dastugue resigned effective Feb 28, 2023. Meanwhile, Scott Lewis, the chief accounting officer and controller, will serve as the interim CFO.
Image Source: Zacks Investment Research
What’s More?
The Zacks Rank #3 (Hold) company is progressing well with its Full Potential plan, which was unveiled in May 2021. The plan includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. With respect to growing Champion and reigniting growth in Innerwear, management is undertaking a two-pronged approach to energize the core and add more. To energize the core, the company is focusing on undertaking consumer-driven product design by delivering category-leading innovation and improving on-shelf execution at retail. Hanesbrands is also driving growth by adding more, evident from its focus on discipline brand management. In the third quarter of 2022, Hanesbrands progressed well with its Full Potential growth strategy, especially around innovation, supply-chain optimization and talent.
Hanesbrands continues to invest in the Champion brand globally. Management is seeing significant growth opportunities as it expands women's and kids businesses for the brand. The company is on track to execute its full potential supply chain strategies to remain competitive and balance speed, cost and flexibility to boost top-line growth and increase margins over time. Management has been streamlining the portfolio, shedding non-core lower-margin businesses and lowering skews for business simplification. The company is focused on lowering SKUs.
Efforts to bolster brands via robust innovations are likely to keep supporting Hanesbrands. The company has a strong Innerwear innovation pipeline, per the third-quarter earnings call. Management has been rolling out new product innovations across men's and women's category with an impressive pipeline extending beyond 2023. The company is on track with its innovation ideas across basics and intimates brands.
HBI’s shares have increased 3.1% in the past three months compared with the industry’s growth of 18.5%.
Stocks to Consider
Some better-ranked companies from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , PVH Corp. (PVH - Free Report) and Oxford Industries (OXM - Free Report)
Ralph Lauren presently sports a Zacks Rank #1(Strong Buy). The company has a trailing four-quarter earnings surprise of 28.7%, on average. RL has an expected long-term earnings growth rate of 4.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales suggests growth of 0.1% from the year-ago period’s reported numbers, while the EPS estimate indicates a decline of 7.5%.
PVH Corp currently carries a Zacks Rank #2 (Buy). PVH has a trailing four-quarter earnings surprise of 22.9%, on average. PVH has a long-term earnings growth rate of 10.2%.
The Zacks Consensus Estimate for PVH Corp’s current financial-year sales and EPS indicates declines of 3.1% and 18.6%, respectively, from the year-ago period’s reported levels.
Oxford Industries currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 18.9%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial-year sales and earnings suggests growth of 23.1% and 34.2% from the year-ago period’s reported numbers, respectively.