HaneBrands Q2 net sales down 3 percent, outlook positive
HanesBrands net sales decreased 3 percent to 1.47 billion dollars for the quarter ended July 2, 2016. On a GAAP basis, operating profit of 221 million dollars increased 59 percent and earnings per diluted share of 0.34 dollar increased 48 percent. When excluding pretax charges related to acquisitions, integrations and other actions, and debt refinancing, adjusted operating profit of 246 million dollars decreased 7 percent, and adjusted EPS of 0.51 dollar increased 2 percent.

“We are confident in our plans for the year, with our sales, operating profit and EPS performance all tracking right in line with our expectations and consistent with our full-year guidance,” said Hanes COO and CEO-Elect Gerald W. Evans Jr, adding, “Our growth initiatives for the second half are unfolding as planned and are tracking to our full-year guidance of 8 percent growth in net sales at the midpoint and double-digit growth in EPS.”

Expects key acquisition to bolster FY results

The company said that it continues to derive benefits and synergies from the Maidenform, Knights Apparel, Hanes Europe Innerwear, and Champion Japan acquisitions and integrations. Additionally, the company completed its acquisition of Champion Europe on June 30, 2016, during the second quarter, and completed its acquisition of Pacific Brands Limited of Australia on July 14, 2016.

Based on year-to-date results and expectations for the second half, Hanes has reaffirmed its full-year guidance. Hanes expects net sales of approximately 6.15 billion dollars to 6.25 billion dollars, growth of 8 percent over 2015 at the midpoint. The company continues to expect record net cash from operations of 750 million dollars to 850 million dollars for 2016.

On a GAAP basis, diluted EPS is expected to be in the range of 1.44 dollars to 1.54 dollars and GAAP operating profit is expected to be in the range of 760 million dollars to 795 million dollars. At the midpoint of guidance, the company expects growth of 41 percent and 31 percent for EPS and operating profit, respectively.

The company expects total company net sales for the remainder of the year to be slightly greater in the third quarter than the fourth quarter. GAAP EPS is expected to be in the range of 0.43 dollar to 0.45 dollar for the third quarter and in the range of 0.47 dollar to 0.55 dollar for the fourth quarter. Adjusted EPS is expected to be in the range of 0.55 dollar to 0.57 dollar in the third quarter and in the range of 0.57 dollar to 0.61 dollar in the fourth quarter.

picture:champion

 

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