Published on 11 Apr 2024 on Zacks via Yahoo Finance
Hanesbrands Inc. HBI is battling with greater-than-anticipated challenges in the sales environment, which is hurting its performance. The basic apparel company is battling weakness in the Activewear segment. Weakness in the International unit is also concerning.Hanesbrands’ reignite Innerwear strategy continues to gain traction. Also, the company’s ongoing cost curtailment efforts are offering respite.Let’s delve deeper.
Volatile Sales Environment
Hanesbrands is operating amid a challenging sales environment, particularly in the U.S. Activewear market and in Australia. The trend hurt the company’s fourth-quarter 2023 results, with the bottom and the top line missing the Zacks Consensus Estimate and declining year over year. On a constant-currency basis, organic net sales fell nearly 10% on more-than-expected global consumer environment challenges, mainly in the U.S. activewear market and in Australia. Global Champion brand sales tumbled 23%.Hanesbrands expects to keep witnessing challenges in the sales environment and categories, particularly in the first quarter of 2024. For first-quarter 2024, net sales from continuing operations are expected to be $1.13-$1.19 billion. The midpoint of the guidance suggests a nearly 16% year-over-year decline on a reported basis and a nearly 14% decline on an organic basis at cc. Quarterly adjusted loss from continuing operations is envisioned to be 4-10 cents per share.