Hanes Q3 Sales $891.68M

Offerings on the Bonds Australian company website.

HanesBrands, which is expected to become part of Gildan soon, but is still reporting as a separate company, reported a huge jump third quarter net income as sales sipped slightly. In the three months ended September 27,  the company earned $270.736 million on sales of $891.683 million, compared to earnings of $29.951 million on sales of $900.367 million in the same period last year.

The company explained the increase in earnings, noting “income from continuing operations totaled $272 million, or $0.76 per diluted share, in the third quarter of 2025, inclusive of a $0.64 per share discrete tax benefit primarily related to the release of a valuation allowance established in 2022 for certain U.S. deferred tax assets. This compares to income from continuing operations of $25 million, or $0.07 per diluted share, in third-quarter 2024. Adjusted Income from continuing operations totaled $52 million, or $0.15 per diluted share, in the third quarter of 2025. This compares to adjusted income from continuing operations of $44 million, or $0.12 per diluted share, last year.”

CEO Steve Bratspies declared “our top-line results for the quarter reflect an unanticipated late quarter shift in replenishment orders at one of our large U.S. retail partners; however, we saw underlying fundamentals of our business continue to improve in the quarter. Our inventory position at retail is strong. We’re encouraged by our unit point-of-sale trends, which sequentially improved each month during the quarter. We are also pleased with our strong back-to-school season as the Hanes brand continued to gain market share.”

He added, “continued execution of our cost savings initiatives drove operating profit growth and operating margin expansion, which along with lower interest expense, combined to generate a 25% increase in adjusted earnings per share in the quarter. Looking forward, our team remains focused on driving the business and the successful completion of the transaction with Gildan.”

The company revealed that during the third quarter in the U.S., “net sales decreased 4.5% as compared to prior year driven by unanticipated shifts in ordering patterns at one of the company’s large retail partners, which impacted late quarter replenishment orders. Despite the near-term sales challenge, the company saw unit point-of-sale trends sequentially improve each month during the quarter as it performed well during the key back-to-school period. The company continued to focus on its core growth fundamentals including new businesses, innovation, brand investments, and incremental programming opportunities, which generated year-over-year market share gains for the Hanes brand during the quarter.” 

Hanes continued, explaining that “operating margin of 22.2% increased 20 basis points over prior year driven by lower input costs and the benefits from cost savings and productivity initiatives. International net sales decreased 8% on a reported basis, which included a $4 million headwind from unfavorable foreign exchange rates, and 6% on a constant currency basis as compared to prior year. By region: constant currency net sales increased in Japan driven by strength in the Hanes brand; decreased in the Americas as a result of the challenging macroeconomic environment; and decreased in Australia as strong growth in the Bonds brand across all channels was more than offset by continued headwinds in the intimate apparel market.”