HBI's third-quarter results reflect lower sales and an earnings miss but highlight improved profits and cost savings.
HBI is set to post modest sales softness but improved profitability as cost cuts and efficiency gains are likely to have supported its Q3 performance.
Hanesbrands is executing major transformations, including debt reduction, asset sales, and technology upgrades, positioning for margin expansion, and improved financials in 2025-2026. Recent EPS and revenue beats, plus raised 2025 guidance and a lower net leverage ratio, signal operational momentum and potential for stock price appreciation. With a net debt of $6.7 billion, a 7x FCF multiplier, a cost of debt of 6.6%, and a WACC of 7.7%, my DCF returned a fair price of $12.6 per share.
| Textiles, Apparel & Luxury Goods Industry | Consumer Discretionary Sector | Stephen B. Bratspies CEO | XBER Exchange | US4103451021 ISIN |
| US Country | 38,000 Employees | 13 Dec 2022 Last Dividend | 4 Mar 2015 Last Split | 6 Sep 2006 IPO Date |
Hanesbrands Inc. is a prominent consumer goods company with a comprehensive focus on designing, manufacturing, sourcing, and selling a wide array of innerwear apparels for men, women, and children. The company has a global presence, distributing its products across the Americas, Europe, the Asia Pacific, and other international markets. It is structured around three main segments: Innerwear, Activewear, and International. Hanesbrands Inc. has a rich history, having been established in 1901, with its headquarters located in Winston-Salem, North Carolina. Through its extensive brand portfolio, including Hanes, Champion, and Maidenform, among others, the company offers a diverse range of products catering to a variety of consumer needs. Moreover, Hanesbrands Inc. engages in licensing agreements, notably licensing the Champion name for footwear and sports accessories, showcasing its adaptability and reach within the fashion and retail industry.
This category includes men's underwear, women's panties, children's underwear, and socks. Additionally, it offers intimate apparel such as bras and shapewear, catering to the essential needs of consumers by providing comfort and quality across a comprehensive range of inner garments.
Under its umbrella, Hanesbrands Inc. also offers products for home use, further diversifying its product lineup and ensuring that the comfort associated with its brand extends beyond personal wear.
The company's activewear encompasses T-shirts, fleece, performance apparel including sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals. This segment ensures that consumers have access to high-quality, performance-oriented apparel suitable for various activities, sports, and casual wear.
Hanesbrands extends its brand offerings through licensed logo apparel, focusing on collegiate bookstores and mass retail channels. This includes the Champion brand, which has become synonymous with high-quality activewear and sports accessories.
The company also licenses the Champion name for footwear and sports accessories, demonstrating its flexibility and the strength of its brand portfolio in forging partnerships that extend its market reach and product diversity.
Hanesbrands Inc.'s products are available under multiple brand names such as Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO. It serves its diverse clientele through a variety of channels, including retailers, wholesalers, and third-party embellishers, ensuring widespread availability and access to its products.