Hanes: Sales Up, Profit $81.6M

Left, new Hanes Moves Women’s 360° Seamless Triangle Bra with Light Support, 12.99; right, Hanes Originals Racerback Bralette, sold as a 2-pack for $16.99, both on the company website.

Hanesbrands reported net income of $81.6 million on slightly higher sales of $991.3 million in the second quarter, compared to a loss of $298.4 million on sales of  $973.9 million in the three months ended June 29, 2024. The company revealed that “U.S. net sales decreased slightly, or approximately $5 million, as compared to prior year,” pointing to “year-over-year growth in its Basics, Active, and New businesses. Similar to the overall innerwear market, this growth was more than offset by continued headwinds in its Intimate Apparel business.” In the U.S., “operating margin of 25.0% increased 360 basis points over prior year driven by benefits from cost savings and productivity initiatives as well as lower input costs.”

Of the total sales in the quarter, Hanes listed $735.5 million from the U.S., $226.0 million as “international,” and $29.9 million were described as “other net sales.”

“International net sales decreased 3% on a reported basis, which included a $7 million headwind from unfavorable foreign exchange rates, and were consistent with prior year on a constant currency basis. By region, constant currency net sales increased in the Americas, were consistent with prior year in Australia, and decreased in Asia. Operating margin of 10.7% decreased 225 basis points compared to prior year, driven primarily by increased promotional activity, unfavorable mix, increased brand investment and the impact from foreign exchange rates, which more than offset the benefits from cost savings initiatives and lower input costs.”

For the full fiscal year 2025, “which ends January 3, 2026, and includes a 53rd week,” Hanes is projecting “net sales from continuing operations of approximately $3.53 billion, which includes projected headwinds of approximately $35 million from changes in foreign currency exchange rates. Net sales are expected to increase slightly over prior year on both a reported and organic constant currency basis.” The company did not provide a net income prediction, but expects a “GAAP operating profit from continuing operations of approximately $471 million.”