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

*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

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(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.)