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Hanesbrands Q1 Earnings Coming Up: Key Factors You Should Know

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Hanesbrands Inc. (HBI - Free Report) is likely to register a top-line decline when it reports first-quarter 2025 earnings on May 8. The Zacks Consensus Estimate for revenues is pegged at $765.8 million, suggesting a decrease of 33.8% from the prior-year quarter's level.

The consensus mark for first-quarter earnings has remained unchanged in the past 30 days at 3 cents per share, indicating a significant improvement from a loss of 2 cents per share in the year-ago quarter. HBI has a trailing four-quarter earnings surprise of 43.6%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Hanesbrands Inc. Price and EPS Surprise

Hanesbrands Inc. Price and EPS Surprise

Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote

Things to Know Ahead of HBI’s Q1 Earnings

Hanesbrands continues to benefit from its consumer-centric strategy, which has played a vital role in enhancing its overall performance. The company is successfully gaining market share through targeted product innovation, particularly appealing to younger consumers, and by expanding its permanent retail footprint. These strategic initiatives are expected to support its first-quarter 2025 results. However, foreign currency fluctuations continue to pose a challenge.

For the first quarter of 2025, the company projects net sales from continuing operations of $750 million, including a $15 million foreign currency exchange rate headwind. This represents about a 1% increase from the prior year on a reported basis. Organic constant-currency net sales are likely to have been flat year over year.

Hanesbrands continues to leverage its core financial strengths to fuel long-term growth and stability. The company remains focused on preserving healthy profit margins and generating strong cash flow, supported by strategic brand-building, data-driven insights, inventory optimization and disciplined SKU management. These operational efficiencies are expected to have contributed to profitability in the upcoming quarterly results.

For the first quarter of 2025, Hanesbrands projects operating profit from continuing operations of approximately $55 million, with adjusted operating profit expected to have reached $65 million. This outlook includes an estimated $1 million impact from unfavorable foreign currency exchange rates.

Hanesbrands continues to navigate a difficult macroeconomic environment marked by inflation, market volatility and subdued consumer demand. These factors have been posing challenges across its key product categories. For the first quarter, the company projects a loss per share from continuing operations of 5 cents, while adjusted earnings per share from continuing operations are estimated at 2 cents.

Earnings Whispers for HBI Stock

Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hanesbrands currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Under Armour, Inc. (UAA - Free Report) has an Earnings ESP of +20.75% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Under Armour’s fourth-quarter fiscal 2025 earnings is pegged at a loss of 9 cents per share, implying a decline of 181.8% from the year-ago quarter. The consensus mark for earnings has been unchanged in the past 30 days. For Under Armour’s quarterly revenues, the consensus mark is pegged at $1.2 billion, which indicates a decrease of 13.1% from the year-ago quarter. UAA delivered an earnings surprise of 98.6% in the last quarter.

Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +2.21% and a Zacks Rank of 3. RL is likely to register a top-line increase when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating a 4.1% rise from the figure reported in the prior-year quarter.

The consensus estimate for Ralph Lauren’s earnings is pegged at $1.96 per share, implying a 14.6% jump from the year-ago quarter. The consensus mark for earnings has moved up by 1% in the past 30 days. RL delivered an earnings surprise of 6.5% in the last quarter.

Deckers (DECK - Free Report) has an Earnings ESP of +8.32% and currently carries a Zacks Rank of 3. DECK's top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $985.6 million, which suggests a 2.7% jump from the figure reported in the year-ago quarter.

The company is expected to register a decrease in the bottom line. The consensus estimate for Deckers’ fourth-quarter earnings is pegged at 56 cents a share, down 32.5% from the year-ago quarter. DECK has a trailing four-quarter earnings surprise of 36.8%, on average.

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