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Published Feb 13, 2025 • 38 minute read
Article contentReports better-than-expected fourth-quarter and full-year 2024 results.Announced agreement to exit Champion Japan license and moved business to discontinued operations in fourth-quarter 2024. Results not directly comparable to prior guidance–see earnings handout for additional information.Net sales for the quarter of $888 million increased 4.5% over prior year, or 3.8% on an organic constant currency basis.GAAP and Adjusted operating margins for the quarter were 13.5% and 14.2%, respectively, an increase of 240 and 300 basis points, respectively, compared to prior year.GAAP earnings per share (EPS) of $0.13 and Adjusted EPS of $0.17.Generated full-year cash flow from operations of $264 million and paid down more than $1 billion of debt. Year-end leverage of 3.4 times net debt-to-adjusted EBITDA decreased nearly 2 turns as compared to prior year.Provides first-quarter and full-year 2025 guidance, including net sales growth, continued margin expansion, strong EPS growth, and further debt reduction. Company expects to refinance all of its 2026 maturities in first-quarter 2025, subject to market conditions.
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WINSTON-SALEM, N.C. — HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for fourth-quarter and full-year 2024.
“We delivered a strong quarter and full-year with results across all key metrics exceeding our expectations as the benefits of our transformation strategy are clearly working,” said Steve Bratspies, CEO. “We enter 2025 as a new Company. We are a more simplified, focused business with a powerful asset base and significant competitive advantages. We believe we are well positioned to build on fourth quarter’s momentum and deliver positive sales growth, additional margin expansion, strong cash generation and continued debt reduction, providing us multiple levers to create additional shareholder value in 2025 and beyond.”
Fourth-Quarter 2024 Results
Net Sales from continuing operations were $888 million.
Net sales increased 4.5% compared to the prior year.On an organic constant currency basis, net sales increased 3.8% over prior year (Table 2-B).
Gross Profit and Gross Margin increased year-over-year driven by the benefits from accelerated cost savings initiatives and lower input costs.
The Company continued its consolidation and other optimization actions in its supply chain to lower fixed cost, increase efficiencies, and further improve customer service and in-stocks with lower levels of inventory. The Company expects these actions to drive continued benefits in 2025.Gross Profit and Adjusted Gross Profit were $390 million and $392 million, respectively, an increase over prior year of 14% and 15%, respectively.Gross Margin and Adjusted Gross Margin increased 380 and 400 basis points, respectively, to 43.9% and 44.1%, respectively.Adjusted Gross Profit and Adjusted Gross Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).
Selling, General and Administrative (SG&A) Expenses, as a percentage of net sales, increased over prior year as planned, strategic increased brand investments drove a 125 basis point increase in SG&A, which was partially offset by benefits from cost savings initiatives and disciplined expense management.
The Company continued its strategic actions to improve its processes and lower fixed cost and expects the savings from these actions to continue to build over the next several quarters.SG&A Expenses were $271 million, or 30.5% of net sales, which represents an increase over prior year of 9% and 140 basis points, respectively.Adjusted SG&A Expenses were $266 million, or 29.9% of net sales, which represents an increase of 8% and 100 basis points, respectively.Adjusted SG&A Expenses exclude certain costs related to restructuring and other action-related charges (Table 6-A).
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Operating Profit and Operating Margin increased over prior year driven by gross margin improvement and SG&A savings initiatives, which supported a 125 basis point increase in brand investments.
Operating Profit increased 27% to $120 million and Operating Margin increased 240 basis points to 13.5% as compared to prior year.Adjusted Operating Profit increased 33% to $126 million and Adjusted Operating Margin increased 300 basis points to 14.2% as compared to prior year.Adjusted Operating Profit and Adjusted Operating Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).
Interest Expense and Other Expenses
Interest expense of $46 million decreased 13% compared to prior year driven by lower debt balances.Other expenses of $18 million included $9 million of an expected write-off of debt issuance costs related to debt pay down in the quarter. Adjusted Other expenses of $9 million increased $2 million over prior year (Table 6-A).
Tax Expense
Tax expense was $9 million as compared to a tax benefit of $(65) million in the prior year. Effective Tax Rate for fourth-quarter 2024 was 16.6%.Adjusted Tax Expense was $9 million as compared to $16 million in fourth-quarter 2023. Adjusted Tax Rate was 12.9% as compared to 46.3% last year (Table 6-A).The Company’s effective tax rate for 2024 and 2023 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets.
Earnings Per Share
Income from continuing operations totaled $46 million, or $0.13 per diluted share, in fourth-quarter 2024. This compares to income from continuing operations of $99 million, or $0.28 per diluted share, in fourth-quarter 2023.Adjusted Income from continuing operations totaled $61 million, or $0.17 per diluted share. This compares to adjusted income from continuing operations of $18 million, or $0.05 per diluted share, last year (Table 6-A).
Fourth-Quarter 2024 Business Segment Summary
U.S. net sales increased 3% over prior year driven primarily by innerwear innovation, including Hanes Absolute Socks, Hanes Moves, Hanes Supersoft and Bali Breathe, as well as incremental holiday programming, and new category growth.
Operating margin of 23.1% increased approximately 525 basis points over prior year. The increase was driven primarily by the benefits from cost savings initiatives and lower input costs, which helped fund a 30% increase in brand investments to drive consumer demand behind new product innovation in both Men’s and Women’s.
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International net sales increased 2% on a reported basis, which included a $9 million headwind from unfavorable foreign exchange rates. International sales increased 6% on a constant currency basis compared to prior year as sales grew in Australia, the Americas, and Asia.
Operating margin of 12.6% decreased approximately 550 basis points compared to prior year driven primarily by transactional foreign exchange headwinds, business mix, and brand investments, which was partially offset by lower input costs and the benefits from cost savings initiatives.
Cash Flow, Balance Sheet and Liquidity
Total liquidity position at the end of fourth-quarter 2024 was more than $1.2 billion, consisting of $215 million of cash and equivalents and approximately $1.0 billion of available capacity under the Company’s credit facilities.Based on the calculation as defined in the Company’s senior secured credit facility, the Leverage Ratio at the end of fourth-quarter 2024 was 3.4 times on a net debt-to-adjusted EBITDA basis, which was below its fourth-quarter 2024 covenant of 6.38 times and below prior year’s 5.2 times (See Table 6-B). The Company paid down more than $1.0 billion of debt in 2024.Inventory at the end of fourth-quarter 2024 of $871 million decreased 9%, or $85 million, year-over-year. The year-over-year decrease was driven predominantly by the benefits of the Company’s inventory management capabilities, including SKU discipline and lifecycle management, lower input costs as the Company continued to anniversary the impact from peak inflation, and improving sales trends.Cash Flow from Operations for the full-year was $264 million as compared to $562 million last year. Free Cash Flow for the full-year was $226 million as compared to $518 million last year.
Announces Exit of Champion Japan License
At the time of closing for the sale of its global Champion business on September 30, 2024, the Company indicated it would continue to operate the Champion Japan business as a licensee for a temporary period of time until it was ultimately transitioned to Authentic Brands Group, in accordance with the terms of the definitive agreement. In the fourth-quarter 2024, the Company notified Authentic Brands Group of its plan to exit the license by the end of 2025 and transition the business ahead of schedule. As a result, the Champion Japan business was reclassified to discontinued operations in the fourth-quarter 2024. For the full-year 2024, the Champion Japan business generated approximately $124 million of net sales and an adjusted operating profit of approximately $12 million.
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First-Quarter and Full-Year 2025 Financial Outlook
The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in the fourth quarter of 2022. Importantly, the reserve does not impact cash taxes. Some portion of the reserve may reverse in future periods.
The Company defines organic constant currency net sales as net sales excluding the ‘other’ segment and the year-over-year impact from foreign exchange rates.
For fiscal year 2025, which ends on January 3, 2026 and includes a 53rd week, the Company currently expects:
Net sales from continuing operations of approximately $3.47 billion to $3.52 billion, which includes projected headwinds of approximately $60 million from changes in foreign currency exchange rates. At the midpoint, net sales are expected to be relatively consistent with prior year on a reported basis and increase approximately 1% on an organic constant currency basis.GAAP operating profit from continuing operations of approximately $420 million to $440 million.Adjusted operating profit from continuing operations of approximately $450 million to $465 million, which excludes pretax charges for restructuring and other action-related charges of approximately $25 million to $30 million. The operating profit outlook includes a projected headwind of approximately $8 million from changes in foreign currency exchange rates.GAAP and Adjusted Interest expense of approximately $190 million.GAAP Other expenses of approximately $49 million. Adjusted Other expenses of approximately $36 million, which excludes approximately $13 million of estimated pretax refinancing charges.GAAP and Adjusted Tax expense of approximately $40 million.GAAP earnings per share from continuing operations of approximately $0.39 to $0.45.Adjusted earnings per share from continuing operations of approximately $0.51 to $0.55.Cash flow from operations of approximately $350 million.Capital investments of approximately $65 million, consisting of approximately $50 million of capital expenditures and approximately $15 million of cloud computing arrangements.Free cash flow of approximately $300 million.Fully diluted shares outstanding of approximately 361 million.
For first-quarter 2025, which ends on March 29, 2025, the Company currently expects:
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Net sales from continuing operations of approximately $750 million, which includes projected headwinds of approximately $15 million from changes in foreign currency exchange rates. This represents an approximate 1% increase as compared to prior year on a reported basis and on an organic constant currency basis net sales are expected to be consistent with prior year.GAAP operating profit from continuing operations of approximately $55 million.Adjusted operating profit from continuing operations of approximately $65 million, which excludes pretax charges for restructuring and other action-related charges of approximately $10 million. The operating profit outlook includes a projected headwind of approximately $1 million from changes in foreign currency exchange rates.GAAP and Adjusted Interest expense of approximately $47 million.GAAP Other expenses of approximately $21 million. Adjusted Other expenses of approximately $8 million, which excludes approximately $13 million of estimated pretax refinancing charges.GAAP and Adjusted Tax expense of approximately $3 million.GAAP loss per share from continuing operations of approximately $(0.05) based on 354 million diluted shares outstanding, as calculated under GAAP (no dilution due to GAAP loss from continuing operations)Adjusted earnings per share from continuing operations of approximately $0.02 based on fully diluted shares outstanding of approximately 360 million.
HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.
HanesBrands Announces Leadership Succession
In a separate press release issued today, HanesBrands announced that Steve Bratspies will depart as Chief Executive Officer of the Company at the end of 2025, or upon the appointment of his successor. Bratspies will also step down from the Board of Directors concurrent with the end of his tenure as CEO. The HanesBrands Board has begun a comprehensive search to identify the Company’s next CEO as part of the Company’s leadership succession planning process and has retained Spencer Stuart, a leading executive search firm, to support its work. Bratspies will stay on in an advisory role once a new CEO is named to support a smooth transition.
Note on Adjusted Measures and Reconciliation to GAAP Measures
To supplement financial results prepared in accordance with generally accepted accounting principles, the Company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted EPS from continuing operations, adjusted income (loss) from continuing operations, adjusted income tax expense, adjusted income (loss) from continuing operations before income taxes, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA, adjusted EBITDA, organic constant currency net sales, adjusted effective tax rate, adjusted interest expense, adjusted other expenses, net debt, leverage ratio and free cash flow.
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Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations excluding actions and the tax effect on actions. Adjusted income tax expense is defined as income tax expense excluding actions. Adjusted income (loss) from continuing operations before income taxes is defined as income (loss) from continuing operations before income tax excluding actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted SG&A is defined as selling, general and administrative expenses excluding actions. Adjusted gross profit is defined as gross profit excluding actions. Adjusted interest expense is defined as interest expense excluding actions. Adjusted other expenses is defined as other expenses excluding actions and adjusted effective tax rate is defined as adjusted tax expense divided by adjusted income (loss) from continuing operations before income tax.
While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of our supply chain restructuring and consolidation and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the Company’s ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken.
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Net debt is defined as the total of current debt, long-term debt, and borrowings under the accounts receivable securitization facility (excluding long-term debt issuance costs and debt discount and borrowings of unrestricted subsidiaries under the accounts receivable securitization facility) less (x) other debt and cash adjustments and (y) cash and cash equivalents. Leverage ratio is the ratio of net debt to adjusted EBITDA as it is defined in our Credit Agreement.
The Company defines free cash flow as net cash from operating activities less capital expenditures. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. The Company defines organic net sales as net sales excluding the ‘other’ segment and excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date.
HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company’s reported operating results, HanesBrands also presents constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation.
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To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).
HanesBrands believes constant currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the Company’s businesses. The Company defines organic constant currency sales as net sales excluding the ‘other’ segment and also excluding the impact of translating foreign currencies into U.S. dollars as discussed above.
Non‐GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.
Cautionary Statement Concerning Forward-Looking Statements
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HanesBrands
HanesBrands (NYSE: HBI) is a global leader in manufacturing basics and Innerwear brands that are synonymous with comfort, quality, and value, and have been trusted by consumers around the world for generations. Among the Company’s iconic brands are Hanes, the leading basic apparel brand in the U.S.; Bonds, an Australian staple since 1915 that is setting new standards for design and innovation; Maidenform, America’s number one shapewear brand; and Bali, Americas number one national bra brand in the U.S. HanesBrands owns the majority of its worldwide manufacturing facilities and has built a strong reputation for workplace quality and ethical business practices.
TABLE 1
HANESBRANDS INC.
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
% Change
December 28,
2024
December 30,
2023
% Change
Net sales
$
888,469
$
850,283
4.5
%
$
3,507,438
$
3,639,386
(3.6
)%
Cost of sales
498,198
508,690
2,147,914
2,347,496
Gross profit
390,271
341,593
14.3
%
1,359,524
1,291,890
5.2
%
As a % of net sales
43.9
%
40.2
%
38.8
%
35.5
%
Selling, general and administrative expenses
270,571
247,154
9.5
%
1,173,576
1,025,612
14.4
%
As a % of net sales
30.5
%
29.1
%
33.5
%
28.2
%
Operating profit
119,700
94,439
26.7
%
185,948
266,278
(30.2
)%
As a % of net sales
13.5
%
11.1
%
5.3
%
7.3
%
Other expenses
18,420
7,095
47,441
37,761
Interest expense, net
46,497
53,685
195,901
214,187
Income (loss) from continuing operations before income taxes
54,783
33,659
(57,394
)
14,330
Income tax expense (benefit)
9,115
(65,104
)
40,601
(14,818
)
Income (loss) from continuing operations
45,668
98,763
(53.8
)%
(97,995
)
29,148
(436.2
)%
Loss from discontinued operations, net of tax
(58,548
)
(20,822
)
(222,436
)
(46,874
)
Net income (loss)
$
(12,880
)
$
77,941
$
(320,431
)
$
(17,726
)
Earnings (loss) per share – basic:
Continuing operations
$
0.13
$
0.28
$
(0.28
)
$
0.08
Discontinued operations
(0.17
)
(0.06
)
(0.63
)
(0.13
)
Net income (loss)
$
(0.04
)
$
0.22
$
(0.91
)
$
(0.05
)
Earnings (loss) per share – diluted:
Continuing operations
$
0.13
$
0.28
$
(0.28
)
$
0.08
Discontinued operations
(0.16
)
(0.06
)
(0.63
)
(0.13
)
Net income (loss)
$
(0.04
)
$
0.22
$
(0.91
)
$
(0.05
)
Weighted average shares outstanding:
Basic
352,881
350,765
352,139
350,592
Diluted
356,851
351,566
352,139
351,057
TABLE 2-A
HANESBRANDS INC.
Supplemental Financial Information
Impact of Foreign Currency
(in thousands, except per share data)
(Unaudited)
The following tables present a reconciliation of reported results on a constant currency basis for the quarter and year ended December 28, 2024 and a comparison to prior year:
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Quarter Ended December 28, 2024
As Reported
Impact from
Foreign
Currency1
Constant
Currency
Quarter
Ended
December 30,
2023
% Change,
As Reported
% Change,
Constant
Currency
As reported under GAAP:
Net sales
$
888,469
$
(9,241
)
$
897,710
$
850,283
4.5
%
5.6
%
Gross profit
390,271
(3,078
)
393,349
341,593
14.3
15.2
Operating profit
119,700
(558
)
120,258
94,439
26.7
27.3
Diluted earnings (loss) per share from continuing operations3
$
0.13
$
0.00
$
0.13
$
(0.28
)
146.4
%
146.4
%
As adjusted:2
Net sales
$
888,469
$
(9,241
)
$
897,710
$
850,283
4.5
%
5.6
%
Gross profit
391,509
(3,078
)
394,587
340,465
15.0
15.9
Operating profit
125,975
(558
)
126,533
94,824
32.9
33.4
Diluted earnings per share from continuing operations3
$
0.17
$
0.00
$
0.17
$
0.05
240.0
%
240.0
%
1
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2
3
Amounts may not be additive due to rounding.
Year Ended December 28, 2024
As Reported
Impact from
Foreign
Currency1
Constant
Currency
Year Ended
December 30,
2023
% Change,
As Reported
% Change,
Constant
Currency
As reported under GAAP:
Net sales
$
3,507,438
$
(39,532
)
$
3,546,970
$
3,639,386
(3.6
)%
(2.5
)%
Gross profit
1,359,524
(19,858
)
1,379,382
1,291,890
5.2
6.8
Operating profit
185,948
(7,077
)
193,025
266,278
(30.2
)
(27.5
)
Diluted earnings (loss) per share from continuing operations3
$
(0.28
)
$
(0.01
)
$
(0.27
)
$
0.08
(450.0
)%
(437.5
)%
As adjusted:2
Net sales
$
3,507,438
$
(39,532
)
$
3,546,970
$
3,639,386
(3.6
)%
(2.5
)%
Gross profit
1,450,703
(19,858
)
1,470,561
1,294,043
12.1
13.6
Operating profit
415,171
(7,077
)
422,248
289,077
43.6
46.1
Diluted earnings (loss) per share from continuing operations 3
$
0.40
$
(0.01
)
$
0.41
$
(0.07
)
(671.4
)%
(685.7
)%
1
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2
3
Amounts may not be additive due to rounding.
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TABLE 2-B
HANESBRANDS INC.
Supplemental Financial Information
Organic Constant Currency
(in thousands, except per share data)
(Unaudited)
The following tables present a reconciliation of reported results on an organic constant currency basis for the quarter and year ended December 28, 2024 and a comparison to prior year:
Quarter Ended December 28, 2024
Quarter Ended December 30, 2023
As
Reported
Impact from
Foreign
Currency1
Less
Other
Sales2
Organic
Constant
Currency
As
Reported
Less
Other
Sales2
Organic
% Change,
As
Reported
% Change,
Organic
Constant
Currency
Net sales
$
888,469
$
(9,241
)
$
16,783
$
880,927
$
850,283
$
1,787
$
848,496
4.5
%
3.8
%
1
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2
Other sales consist of the Company’s U.S. Sheer Hosiery business (prior to the September 29, 2023 sale) as well as certain sales from the Company’s supply chain and short term support/transition services agreements for disposed businesses.
Year Ended December 28, 2024
Year Ended December 30, 2023
As
Reported
Impact from
Foreign
Currency1
Less
Other
Sales2
Organic
Constant
Currency
As
Reported
Less
Other
Sales2
Organic
% Change,
As
Reported
% Change,
Organic
Constant
Currency
Net sales
$
3,507,438
$
(39,532
)
$
17,868
$
3,529,102
$
3,639,386
$
69,663
$
3,569,723
(3.6
)%
(1.1
)%
1
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2
Other sales consist of the Company’s U.S. Sheer Hosiery business (prior to the September 29, 2023 sale) as well as certain sales from the Company’s supply chain and short term support/transition services agreements for disposed businesses.
TABLE 3
HANESBRANDS INC.
Supplemental Financial Information
By Business Segment
(in thousands)
(Unaudited)
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
% Change
December 28,
2024
December 30,
2023
% Change
Segment net sales:
U.S.
$
618,747
$
600,733
3.0
%
$
2,581,137
$
2,636,656
(2.1
)%
International
252,939
247,763
2.1
908,433
933,067
(2.6
)
Total segment net sales
871,686
848,496
2.7
3,489,570
3,569,723
(2.2
)
Other net sales
16,783
1,787
839.2
17,868
69,663
(74.4
)
Total net sales
$
888,469
$
850,283
4.5
%
$
3,507,438
$
3,639,386
(3.6
)%
Segment operating profit:
U.S.
$
142,738
$
106,933
33.5
%
$
548,852
$
404,273
35.8
%
International
31,764
44,699
(28.9
)
106,506
108,833
(2.1
)
Total segment operating profit
174,502
151,632
15.1
655,358
513,106
27.7
Other profit (loss)
3,988
(1,319
)
(402.4
)
2,550
(1,189
)
(314.5
)
General corporate expenses
(48,644
)
(50,781
)
(4.2
)
(225,997
)
(204,019
)
10.8
Amortization of intangibles
(3,871
)
(4,708
)
(17.8
)
(16,740
)
(18,821
)
(11.1
)
125,975
94,824
32.9
415,171
289,077
43.6
(6,275
)
(385
)
1,529.9
(229,223
)
(22,799
)
905.4
Total operating profit
$
119,700
$
94,439
26.7
%
$
185,948
$
266,278
(30.2
)%
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Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
Basis Points Change
December 28,
2024
December 30,
2023
Basis Points Change
Segment operating margin:
U.S.
23.1
%
17.8
%
527
21.3
%
15.3
%
593
International
12.6
18.0
(548
)
11.7
11.7
6
Total segment operating profit
20.0
17.9
215
18.8
14.4
441
Other profit (loss)
23.8
(73.8
)
9,757
14.3
(1.7
)
1,598
General corporate expenses
(5.5
)
(6.0
)
50
(6.4
)
(5.6
)
(84
)
Amortization of intangibles
(0.4
)
(0.6
)
12
(0.5
)
(0.5
)
4
14.2
11.2
303
11.8
7.9
389
(0.7
)
—
(66
)
(6.5
)
(0.6
)
(591
)
Total operating margin
13.5
%
11.1
%
237
5.3
%
7.3
%
(202
)
TABLE 4
HANESBRANDS INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
December 28,
2024
December 30,
2023
Assets
Cash and cash equivalents
$
214,854
$
185,217
Trade accounts receivable, net
376,195
423,682
Inventories
871,044
956,430
Other current assets
152,853
113,281
Current assets held for sale
100,430
597,605
Total current assets
1,715,376
2,276,215
Property, net
188,259
353,035
Right-of-use assets
222,759
271,751
Trademarks and other identifiable intangibles, net
886,264
959,851
Goodwill
638,370
659,361
Deferred tax assets
13,591
18,176
Other noncurrent assets
116,729
135,247
Noncurrent assets held for sale
59,593
966,678
Total assets
$
3,840,941
$
5,640,314
Liabilities
Accounts payable
$
593,377
$
538,782
Accrued liabilities
452,940
410,152
Lease liabilities
64,233
64,547
Accounts Receivable Securitization Facility
95,000
6,000
Current portion of long-term debt
—
59,000
Current liabilities held for sale
42,990
312,087
Total current liabilities
1,248,540
1,390,568
Long-term debt
2,186,057
3,235,640
Lease liabilities – noncurrent
206,124
235,453
Pension and postretirement benefits
66,171
98,170
Other noncurrent liabilities
67,452
121,150
Noncurrent liabilities held for sale
32,587
139,980
Total liabilities
3,806,931
5,220,961
Stockholders’ equity
Preferred stock
—
—
Common stock
3,525
3,501
Additional paid-in capital
373,213
353,367
Retained earnings
234,494
554,796
Accumulated other comprehensive loss
(577,222
)
(492,311
)
Total stockholders’ equity
34,010
419,353
Total liabilities and stockholders’ equity
$
3,840,941
$
5,640,314
TABLE 5
HANESBRANDS INC.
Condensed Consolidated Statements of Cash Flows1
(in thousands)
(Unaudited)
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Operating activities:
Net income (loss)
$
(12,880
)
$
77,941
$
(320,431
)
$
(17,726
)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation
11,355
19,022
69,861
75,268
Amortization of acquisition intangibles
1,893
4,091
12,020
16,569
Other amortization
1,979
3,344
10,174
13,200
Impairment of long-lived assets and goodwill
—
—
76,746
—
Inventory write-down charges, net of recoveries
6,220
—
119,748
—
Loss on extinguishment of debt
9,412
—
9,412
8,466
Loss on sale of businesses and classification of assets held for sale
63,831
—
114,161
3,641
Amortization of debt issuance costs and debt discount
4,887
2,362
12,535
8,939
Stock compensation expense
4,711
4,527
25,845
20,546
Deferred taxes
(11,895
)
(85,595
)
(11,974
)
(84,745
)
Other
(3,317
)
8,495
909
610
Changes in assets and liabilities:
Accounts receivable
84,821
162,080
(1,785
)
174,249
Inventories
59,095
155,390
114,931
599,982
Other assets
30,441
103,505
17,555
82,672
Accounts payable
(67,408
)
(69,191
)
17,649
(194,602
)
Accrued pension and postretirement benefits
(2,045
)
2,618
(4,662
)
6,799
Accrued liabilities and other
(113,669
)
(114,184
)
1,549
(152,119
)
Net cash from operating activities
67,431
274,405
264,243
561,749
Investing activities:
Capital expenditures
(5,710
)
(8,266
)
(37,889
)
(44,056
)
Proceeds from sales of assets
26
159
12,362
331
Proceeds from (payments for) disposition of businesses
850,560
—
838,560
1,300
Other
—
1
—
18,942
Net cash from investing activities
844,876
(8,106
)
813,033
(23,483
)
Financing Activities:
Borrowings on Term Loan Facilities
—
—
—
891,000
Repayments on Term Loan Facilities
(1,097,983
)
(14,750
)
(1,127,483
)
(44,250
)
Borrowings on Accounts Receivable Securitization Facility
220,000
541,500
1,831,000
2,270,000
Repayments on Accounts Receivable Securitization Facility
(125,000
)
(736,000
)
(1,742,000
)
(2,473,500
)
Borrowings on Revolving Loan Facilities
—
306,500
613,500
1,923,000
Repayments on Revolving Loan Facilities
—
(367,000
)
(613,500
)
(2,275,500
)
Borrowings on Senior Notes
—
—
—
600,000
Repayments on Senior Notes
—
—
—
(1,436,884
)
Payments to amend and refinance credit facilities
(71
)
(2,517
)
(783
)
(31,020
)
Other
(3,505
)
(37
)
(7,454
)
(2,921
)
Net cash from financing activities
(1,006,559
)
(272,304
)
(1,046,720
)
(580,075
)
Effect of changes in foreign exchange rates on cash
(17,305
)
20,415
(20,703
)
8,897
Change in cash and cash equivalents
(111,557
)
14,410
9,853
(32,912
)
Cash and cash equivalents at beginning of period
326,911
191,091
205,501
238,413
Cash and cash equivalents at end of period
$
215,354
$
205,501
$
215,354
$
205,501
Balances included in the Consolidated Balance Sheets:
Cash and cash equivalents
$
214,854
$
185,217
$
214,854
$
185,217
Cash and cash equivalents included in current assets held for sale
$
500
$
20,284
$
500
$
20,284
Cash and cash equivalents at end of year
$
215,354
$
205,501
$
215,354
$
205,501
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TABLE 6-A
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
The following tables present a reconciliation of results from continuing operations as reported under GAAP to the results from continuing operations as adjusted for the quarter and year ended December 28, 2024 and a comparison to prior year. The results of continuing operations exclude the results of the global Champion business, the Champion Japan business and the U.S.-based outlet store business, which have been reclassified to discontinued operations for all periods presented. The Company has chosen to present the following non-GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating continuing operations absent the effect of restructuring and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
Supply chain restructuring and consolidation
Corporate asset impairment charges
Professional services
Technology
Gain/loss on sale of business and classification of assets held for sale
Loss on extinguishment of debt
Gain on final settlement of cross currency swap contracts
Discrete tax benefit
Tax effect on actions
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Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Gross profit, as reported under GAAP
$
390,271
$
341,593
$
1,359,524
$
1,291,890
As a % of net sales
43.9
%
40.2
%
38.8
%
35.5
%
Supply chain restructuring and consolidation
1,238
(1,284
)
80,748
1,128
Corporate asset impairment charges
—
—
10,395
—
—
156
36
1,025
Gross profit, as adjusted
$
391,509
$
340,465
$
1,450,703
$
1,294,043
As a % of net sales
44.1
%
40.0
%
41.4
%
35.6
%
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Selling, general and administrative expenses, as reported under GAAP
$
270,571
$
247,154
$
1,173,576
$
1,025,612
As a % of net sales
30.5
%
29.1
%
33.5
%
28.2
%
Supply chain restructuring and consolidation
(667
)
—
(90,781
)
—
Corporate asset impairment charges
—
—
(9,712
)
—
860
(573
)
(16,957
)
(4,124
)
Professional services
(4,611
)
(6
)
(16,488
)
(3,819
)
Technology
(1,032
)
(657
)
(1,859
)
(8,347
)
(Loss) gain on sale of business and classification of assets held for sale
—
—
—
(3,641
)
Other
413
(277
)
(2,247
)
(715
)
Selling, general and administrative expenses, as adjusted
$
265,534
$
245,641
$
1,035,532
$
1,004,966
As a % of net sales
29.9
%
28.9
%
29.5
%
27.6
%
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Operating profit, as reported under GAAP
$
119,700
$
94,439
$
185,948
$
266,278
As a % of net sales
13.5
%
11.1
%
5.3
%
7.3
%
Supply chain restructuring and consolidation
1,905
(1,284
)
171,529
1,128
Corporate asset impairment charges
—
—
20,107
—
(860
)
729
16,993
5,149
Professional services
4,611
6
16,488
3,819
Technology
1,032
657
1,859
8,347
Loss (gain) on sale of business and classification of assets held for sale
—
—
—
3,641
Other
(413
)
277
2,247
715
Operating profit, as adjusted
$
125,975
$
94,824
$
415,171
$
289,077
As a % of net sales
14.2
%
11.2
%
11.8
%
7.9
%
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Interest expense, net and other expenses, as reported under GAAP
$
64,917
$
60,780
$
243,342
$
251,948
Loss on extinguishment of debt
(9,412
)
—
(9,412
)
(8,466
)
Gain on final settlement of cross currency swaps
—
—
—
1,370
Interest expense, net and other expenses, as adjusted
$
55,505
$
60,780
$
233,930
$
244,852
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Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Income (loss) from continuing operations before income taxes, as reported under GAAP
$
54,783
$
33,659
$
(57,394
)
$
14,330
Supply chain restructuring and consolidation
1,905
(1,284
)
171,529
1,128
Corporate asset impairment charges
—
—
20,107
—
(860
)
729
16,993
5,149
Professional services
4,611
6
16,488
3,819
Technology
1,032
657
1,859
8,347
Loss (gain) on sale of business and classification of assets held for sale
—
—
—
3,641
Other
(413
)
277
2,247
715
Loss on extinguishment of debt
9,412
—
9,412
8,466
Gain on final settlement of cross currency swaps
—
—
—
(1,370
)
Income from continuing operations before income taxes, as adjusted
$
70,470
$
34,044
$
181,241
$
44,225
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Income tax expense (benefit), as reported under GAAP
$
9,115
$
(65,104
)
$
40,601
$
(14,818
)
Discrete tax (expense) benefit
—
80,859
—
85,122
Tax effect on actions
—
—
—
—
Income tax expense, as adjusted
$
9,115
$
15,755
$
40,601
$
70,304
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Income (loss) from continuing operations, as reported under GAAP
$
45,668
$
98,763
$
(97,995
)
$
29,148
Supply chain restructuring and consolidation
1,905
(1,284
)
171,529
1,128
Corporate asset impairment charges
—
—
20,107
—
(860
)
729
16,993
5,149
Professional services
4,611
6
16,488
3,819
Technology
1,032
657
1,859
8,347
Loss (gain) on sale of business and classification of assets held for sale
—
—
—
3,641
Other
(413
)
277
2,247
715
Loss on extinguishment of debt
9,412
—
9,412
8,466
Gain on final settlement of cross currency swaps
—
—
—
(1,370
)
Discrete tax expense (benefit)
—
(80,859
)
—
(85,122
)
Tax effect on actions
—
—
—
—
Income (loss) from continuing operations, as adjusted
$
61,355
$
18,289
$
140,640
$
(26,079
)
Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Diluted earnings (loss) per share from continuing operations, as reported under GAAP1
$
0.13
$
0.28
$
(0.28
)
$
0.08
Supply chain restructuring and consolidation
0.01
0.00
0.48
0.00
Corporate asset impairment charges
—
—
0.06
—
0.00
0.00
0.05
0.01
Professional services
0.01
0.00
0.05
0.01
Technology
0.00
0.00
0.01
0.02
Loss (gain) on sale of business and classification of assets held for sale
—
—
—
0.01
Other
0.00
0.00
0.01
0.00
Loss on extinguishment of debt
0.03
—
0.03
0.02
Gain on final settlement of cross currency swaps
—
—
—
0.00
Discrete tax expense (benefit)
—
(0.23
)
—
(0.24
)
Tax effect on actions
—
—
—
—
Diluted earnings (loss) per share from continuing operations, as adjusted
$
0.17
$
0.05
$
0.40
$
(0.07
)
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1
Amounts may not be additive due to rounding.
TABLE 6-B
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
Last Twelve Months
December 28,
2024
December 30,
2023
Leverage Ratio:
EBITDA1:
Income (loss) from continuing operations
$
(97,995
)
$
29,148
Interest expense, net
195,901
214,187
Income tax expense (benefit)
40,601
(14,818
)
Depreciation and amortization
79,080
79,954
Total EBITDA
217,587
308,471
238,635
29,895
Other net losses, charges and expenses3
123,499
93,774
Total EBITDA from discontinued operations, as adjusted4
10,420
170,013
Total EBITDA, as adjusted
$
590,141
$
602,153
Net debt:
Debt (current and long-term debt and Accounts Receivable Securitization Facility excluding long term debt issuance costs and debt discount of $17,210 and $36,110, respectively)
$
2,298,267
$
3,336,750
(95,000
)
(6,000
)
Other debt and cash adjustments6
3,549
24,469
(Less) Cash and cash equivalents of continuing operations
(214,854
)
(205,501
)
(Less) Cash and cash equivalents of discontinued operations
(500
)
(20,284
)
Net debt
$
1,991,462
$
3,129,434
Debt/Income (loss) from continuing operations7
(23.5
)
114.5
Net debt/EBITDA, as adjusted8
3.4
5.2
1
Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.
2
3
4
5
Represents amounts outstanding under an existing accounts receivable securitization facility entered into by an unrestricted subsidiary of the Company.
6
Includes drawn and undrawn letters of credit, financing leases and cash balances in certain geographies.
7
Represents Debt divided by Income (loss) from continuing operations which is the most comparable GAAP financial measure to Net debt/EBITDA, as adjusted.
8
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Quarters Ended
Years Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Free cash flow1:
Net cash from operating activities
$
67,431
$
274,405
$
264,243
$
561,749
Capital expenditures
(5,710
)
(8,266
)
(37,889
)
(44,056
)
Free cash flow
$
61,721
$
266,139
$
226,354
$
517,693
1
Free cash flow includes the results from continuing and discontinued operations for all periods presented.
TABLE 7
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of GAAP Outlook to Adjusted Outlook
(in thousands, except per share data)
(Unaudited)
Quarter Ended
Year Ended
March 29,
2025
January 3,
2026
Operating profit outlook, as calculated under GAAP
$55,000
$420,000 to $440,000
10,000
$25,000 to $30,000
Operating profit outlook, as adjusted
$65,000
$450,000 to $465,000
Other expenses outlook, as calculated under GAAP
$21,000
$49,000
(13,000)
(13,000)
Other expenses outlook, as adjusted
$8,000
$36,000
Diluted earnings (loss) per share from continuing operations, as calculated under GAAP1
$(0.05)
$0.39 to 0.45
0.07
0.10 to 0.12
Diluted earnings (loss) per share from continuing operations, as adjusted
$0.02
$0.51 to $0.55
Cash flow from operations outlook, as calculated under GAAP
$350,000
Capital expenditures outlook
50,000
Free cash flow outlook
$300,000
1
The company expects approximately 354 million diluted weighted average shares outstanding, as calculated under GAAP (no dilution due to GAAP loss from continuing operations) and approximately 359 million diluted weighted average shares outstanding, as adjusted, for the quarter ended March 29, 2025. The company expects approximately 361 million diluted weighted average shares outstanding for the year ended January 3, 2026.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213774231/en/
Contacts
News Media contact: Jonathan Binder (336) 682-9654
Analysts and Investors contact: T.C. Robillard (336) 519-2115
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