Hanesbrands Soars 14% After Q2 Earnings: Strength In US Innerwear Unit And Margin Gains Drive Upbeat Performance
Portfolio Pulse from Nabaparna Bhattacharya
Hanesbrands Inc. (NYSE:HBI) shares surged 14.4% after the company reported better-than-expected Q2 earnings. The company posted adjusted EPS of 15 cents, beating the street view of 10 cents, and an adjusted gross margin of 39.8%, up 525 basis points year-over-year. Despite a 4% decline in net sales from continuing operations, the company highlighted strong performance in its U.S. innerwear unit and margin gains. Hanesbrands also adjusted its full-year 2024 guidance, projecting net sales of $3.59 billion to $3.63 billion and adjusted EPS of $0.31 to $0.37.
August 08, 2024 | 4:44 pm
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POSITIVE IMPACT
Hanesbrands Inc. reported strong Q2 earnings, with adjusted EPS of 15 cents beating expectations and a significant improvement in gross margin. Despite a decline in net sales, the company's performance in the U.S. innerwear unit and cost-saving initiatives have driven positive sentiment.
The significant beat on adjusted EPS and gross margin improvement, coupled with strong performance in the U.S. innerwear unit, has driven a positive market reaction. The company's cost-saving initiatives and liquidity position further support a positive short-term outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100