Hanesbrands (NYSE: HBI) stock surged 6.75% in pre-market trading on Thursday following the release of its impressive first-quarter 2025 financial results. The apparel manufacturer reported earnings that significantly exceeded analysts' expectations, demonstrating resilience in a challenging economic environment.

The company posted adjusted earnings per share of $0.07, surpassing the FactSet consensus estimate of $0.02 by a remarkable 250%. This represents a substantial improvement from the $0.02 loss per share reported in the same quarter last year. Hanesbrands also beat revenue expectations, reporting sales of $760.15 million, slightly above the analyst consensus of $752.34 million.

Investors were particularly encouraged by Hanesbrands' improved profitability metrics. The company achieved a gross margin of 41.7% and an adjusted operating margin of 10.7%, indicating effective cost management and pricing strategies. Looking ahead, Hanesbrands provided an optimistic outlook for the second quarter, projecting adjusted earnings per share of about $0.18 and net sales of approximately $970 million. Furthermore, the company reiterated its full-year 2025 guidance, which accounts for expected impacts from U.S. tariffs, showcasing confidence in its ability to navigate potential headwinds.

Management expressed assurance in mitigating cost pressures through further cost reductions and strategic pricing actions. This proactive approach, combined with the strong Q1 performance and positive forward guidance, has bolstered investor confidence in Hanesbrands' growth trajectory, driving the significant pre-market stock price increase.