Apparel maker HanesBrands' Q2 sales beat estimates, raises full-year outlook

Hanesbrands

07/08/2025 11:58

Overview

HanesBrands Q2 net sales rise 1.8%, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 increases 60%, surpassing analyst estimates, per LSEG data

Co raises full-year 2025 outlook for net sales, operating profit, and EPS

Outlook

HanesBrands expects full-year 2025 net sales of $3.53 bln

Company projects full-year adjusted EPS of $0.66

HanesBrands sees third-quarter net sales at $900 mln

Company anticipates $35 mln tax expense for full-year 2025

Result Drivers

COST SAVINGS - Gross margin improvement driven by cost savings and productivity initiatives, per CEO Steve Bratspies

LOWER INPUT COSTS - Gross profit and margin benefited from lower input costs

SG&A REDUCTION - Operating profit increase attributed to lower SG&A expenses and disciplined expense management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$991.32 mln
$970 mln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.24
$0.18 (5 Analysts)
Q2 Gross Margin
41.6%
Q2 Adjusted operating profit
Beat
$153 mln
$136 mln (5 Analysts)
Q2 Adjusted Gross Margin
41.2%
Q2 Adjusted operating Margin
15.5%
Q2 Operating Margin
15.6%
Q2 Operating profit
$154.66 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy."

Wall Street's median 12-month price target for HanesBrands Inc is $5.50, about 24.2% above its August 6 closing price of $4.17

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw5XkwHHa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)