Hanesbrands Has Already Priced In Projections, Leaving Little Margin For Error
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Hanesbrands Inc. reported flat organic revenue and margin improvement in Q3 2024, with increased SG&A expenses due to marketing and talent investments. The company completed the Champion divestment and repaid $870 million in debt, focusing on higher-yielding Term Loan B, which boosted the stock by 18%. Despite potential Q4 growth, long-term margin targets remain uncertain.
November 08, 2024 | 6:00 pm
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Hanesbrands Inc. reported flat organic revenue and margin improvement in Q3 2024, with increased SG&A expenses due to marketing and talent investments. The company completed the Champion divestment and repaid $870 million in debt, focusing on higher-yielding Term Loan B, which boosted the stock by 18%. Despite potential Q4 growth, long-term margin targets remain uncertain.
The completion of the Champion divestment and significant debt repayment have positively impacted Hanesbrands' stock, resulting in an 18% increase. However, the flat organic revenue and increased SG&A expenses highlight challenges. The potential for Q4 growth exists, but long-term margin targets are uncertain, which could affect future stock performance.
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