- Prachi Singh |
Ahead of its investor day meet at its Winston-Salem headquarters, Hanes has reaffirmed its second-quarter 2018 and full-year 2018 guidance issued May 1, 2018. The company continues to expect full-year net sales of 6.72 billion dollars to 6.82 billion dollars, GAAP operating profit of 870 million dollars to 905 million dollars, adjusted operating profit excluding actions of 950 million dollars to 985 million dollars, GAAP EPS of 1.54 dollars to 1.62 dollars and adjusted EPS excluding actions of 1.72 dollars to 1.80 dollars.
Commenting on the company’s goals, Hanes Chief Executive Officer Gerald W. Evans Jr. said in a statement, “Immediate priorities for the company include continuing to drive double-digit global revenue growth for Champion and the online/consumer-direct channel; returning the US innerwear business to growth; capturing the remaining synergies and ending integration charges for prior acquisitions; and reducing the company’s net debt-to-EBITDA ratio.”
Hanes confirms sales and EPS expectations for Q2
Second-quarter net sales are expected to be in the range of 1.7 billion dollars to 1.725 billion dollars. GAAP operating profit is expected to be 215 million dollars to 225 million dollars and adjusted operating profit excluding actions is expected to be 240 million dollars to 250 million dollars. GAAP EPS is expected to be 0.38 dollar to 0.40 dollar and adjusted EPS excluding actions is expected to be 0.44 dollar to 0.46 dollar.
“Over the next few years, we expect to see meaningful EPS growth from our disciplined capital allocation strategy and modest operating margin expansion,” added Hanes Chief Financial Officer Barry A. Hytinen.
Jonathan Ram joins Hanes to lead global activewear business
The company also announced that Jonathan Ram is joining Hanes to lead its global activewear businesses, including Champion, as Group President, Global Activewear, effective May 21, 2018.
Ram joins Hanes from New Balance Athletics, Inc., where he served as executive vice president North America and previously served as a managing director overseeing New Balance’s Europe, Middle East, Africa and Mexico businesses. He holds more than 25 years of wholesale and retail experience in the athleticwear, sports footwear and sports licensing industries. He will report to Evans
“We are delighted to attract a top talent such as Jon with extensive experience and success in business development, marketing, merchandising and product management in the athleticwear and footwear industry. Our activewear businesses have significant momentum in the Americas, Europe and Asia and we are eager for Jon to join our team to help us achieve the enormous additional potential of these businesses,” said Evans.
Ram joined New Balance in 2002. Prior to that, he held positions with Roots Ltd., National Basketball Association Entertainment Inc., Richmont Apparel Corporation, National Hockey League Players’ Association and Major League Baseball Properties, Inc. Ram succeeds John T. Marsh, who has decided to take a professional three-year sabbatical to serve an overseas volunteer mission for his church.
At the investors day meet, the company added that it will highlight the company’s diversified global business model that has the company poised to generate consistent growth and as much free cash flow in the next five years as the previous 11 years combined.
Picture:HanesBrands media gallery