HanesBrands Q3 sales hit by late order shifts from major retailer

HanesBrands Inc. reported third-quarter 2025 net sales of 892 million dollars, a 1 percent decrease year-over-year, which CEO Steve Bratspies attributed to "an unanticipated late quarter shift in replenishment orders at one of our large U.S. retail partners."

Despite this top-line headwind, Bratspies emphasized the strengthening foundation of the business, stating, "we saw underlying fundamentals of our business continue to improve in the quarter," pointing to sequentially improving unit point-of-sale trends, a strong retail inventory position, and market share gains for the Hanes brand during the successful back-to-school season.

On the bottom line, the company delivered a 25 percent increase in adjusted earnings per share to 15 cents, driven by margin expansion and cost discipline; as the CEO explained, "the continued execution of our cost savings initiatives drove operating profit growth and operating margin expansion, which along with lower interest expense, combined to generate a 25% increase in adjusted earnings per share in the quarter."

Segment performance was mixed: U.S. net sales fell 4.5 percent due to the aforementioned retailer order shift, but the segment increased its operating margin by 20 basis points to 22.2 percent due to cost savings; the International segment saw sales decline 6 percent in constant currency, with growth in Japan being offset by challenging macroeconomic environments in the Americas and softness in the intimate apparel market in Australia, despite strong momentum from the Bonds brand.

The company's strategic focus remains centered on driving core business performance alongside its planned acquisition by Gildan; as previously announced on August 13, 2025, the two companies entered into a definitive merger agreement, and Bratspies confirmed the team remains focused on "the successful completion of the transaction with Gildan."