- Angela Gonzalez-Rodriguez |
“Our guidance reflects solid double-digit growth expectations for sales, profit and EPS over 2014 results,” Hanes Chairman and Chief Executive Officer Richard A. Noll said.
“We continue to track to our expectations for the year and the underlying assumptions for our full-year guidance remain in place,” continued Noll when presenting the second-quarter results of the company on Wednesday.
In a note to the market, Hanes reaffirmed all of its full-year 2015 guidance issued July 30, 2015, with second-quarter results.
As recalled by ‘MarketWatch’, the guidance includes expectations for net sales of almost 5.9 billion dollars, and adjusted operating profit of approximately 855 million to 875 million dollars.
The company reassured the market on its estimated adjusted earnings per diluted share of approximately 1.61 to 1.66 dollars, and net cash from operating activities of approximately 550 million dollars.
In this vein and, as previously communicated in July, HanesBrands stressed yet again that any potential effect that share repurchases may have on EPS results are not included in the company’s full-year guidance.
Hanes began repurchasing company stock in the open market in the third quarter under its previously announced share repurchase program and will report its repurchasing activity when announcing third-quarter results.
On the wake of the news, Zacks Equity Analysis downgraded HanesBrand stock from their previous recommendation of ´hold´ to ´sell´.
“Zacks Consensus Estimate. However, it grew 16 percent year over year backed by the recent acquisitions and the success of the Innovate-to-Elevate strategy. While revenues of 1.52 billion dollars marginally missed the consensus mark, it grew 13 percent year over year driven by strong sales growth in the Activewear and International segments as well as the acquisitions. Given the performance, the company increased its operating profit guidance for fiscal 2015 guidance. The company's strong e-Commerce business and replenishment driven nature of products and strategic buyouts help it to maintain top line at decent levels. However, the lack of international exposure and too much focus on premium brands remain threats for the company.”