HanesBrands Q3 sales slightly miss estimates on replenishment order shift

Hanesbrands

06/11/2025 12:17

Overview

HanesBrands Q3 net sales fell 1%, missing analyst expectations

Adjusted EPS rose 25% to $0.15, despite adjusted operating profit missing estimates

Company in merger talks with Gildan, affecting future guidance

Outlook

HanesBrands will not provide future guidance due to pending Gildan merger

Company remains on track to meet full-year 2025 EPS outlook

Result Drivers

REPLENISHMENT ORDER SHIFT - Unanticipated late quarter shift in replenishment orders at a large U.S. retail partner affected net sales

COST SAVINGS - Execution of cost savings initiatives drove operating profit growth and margin expansion

BACK-TO-SCHOOL SUCCESS - Strong back-to-school season contributed to market share gains for Hanes brand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Miss*
$891.68 mln
$895.90 mln (6 Analysts)
Q3 Gross Margin
40.80%
Q3 Adjusted operating profit
Miss
$116 mln
$122.20 mln (5 Analysts)
Q3 Adjusted Gross Margin
40.80%
Q3 Adjusted operating Margin
13.00%
Q3 Operating Margin
12.10%
Q3 Operating profit
$107.53 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "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 $6.00, about 9.8% below its November 5 closing price of $6.59

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw1Q2XRka

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)