Net sales from continuing operations of $1.58 billion increase 5% over prior year; increase 7% on a constant currency basis
GAAP EPS from continuing operations of $0.32; Adjusted EPS from continuing operations of $0.34
Global Champion brand sales increase 6% over prior year in constant currency; growth on a two-year stack basis accelerates for second consecutive quarter to 28%
U.S. Innerwear sales increase 1.5% over prior year and 37% on a two-year stack basis, driven by retail space gains, price increases and product mix
Repurchased $25 million, or approximately 1.6 million shares, of stock in the quarter
Provides second-quarter 2022 guidance. Constant currency net sales consistent with prior year as underlying business fundamentals position Company to anniversary last year’s substantial 88% growth, excluding PPE sales; GAAP EPS of $0.28 to $0.32; Adjusted EPS of $0.32 to $0.36
Reaffirms full-year 2022 guidance ranges for sales, operating profit and EPS. Expects sales near the midpoint of its range. Increased challenges in the global operating environment have resulted in an incremental $65 million of net cost headwinds; expects operating profit and EPS near the low-end of its guidance range
For reconciliations of select GAAP and Non-GAAP measures, see Table 6 of this release
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for the first quarter of 2022.
“I’m very proud of our team for delivering another strong quarter in an incredibly challenging time as we exceeded expectations for sales and earnings per share,” said Steve Bratspies, CEO. “We saw continued strong demand for our brands in the quarter, with global Champion and innerwear growth accelerating on a two-year basis.”
Bratspies continued, “At the same time, the global operating environment has deteriorated significantly over the past three months, with accelerating inflation, continued COVID-19 disruptions and logistical challenges. In this environment, we are highly focused on executing in the areas we control. We are unwavering in our commitment to investing in our people, brands and technology, and I remain confident that we will deliver on our Full Potential plan.”
First-Quarter Highlights
First-Quarter 2022 Results
See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include Full Potential plan charges.
First-Quarter 2022 Business Segment Summary
Cash Flow, Balance Sheet and Shareholder Capital Returns
Second Quarter and Full-Year 2022 Financial Outlook
For second-quarter 2022, which ends on July 2, 2022, the Company currently expects:
For fiscal-year 2022, which ends on December 31, 2022, the Company currently expects:
HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.
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 from continuing operations, adjusted income tax expense, adjusted income from continuing operations before income tax expense, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA and adjusted EBITDA.
Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income from continuing operations is defined as income 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 from continuing operations before income tax is defined as income 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.
Charges for actions taken in 2022 and 2021 include professional fees, operating model charges, (gain)/loss on classification of assets held for sale, supply chain segmentation charges, technology charges and intangible asset impairment charges related to our Full Potential plan.
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 the Full Potential plan and other actions. 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.
The Company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding actions and stock compensation expense. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.
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.
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.
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
This news release contains certain forward-looking statements, as defined under U.S. federal securities laws, with respect to our long-term goals and trends associated with our business, as well as guidance as to future performance. In particular, among others, guidance and predictions regarding expected operating results, including related to our Full Potential plan and statements made in the Second Quarter and Full-year 2022 Financial Outlook section of this news release are forward-looking statements. These forward-looking statements are based on our current intent, beliefs, plans and expectations. Readers are cautioned not to place any undue reliance on any forward-looking statements. Forward-looking statements necessarily involve risks and uncertainties, many of which are outside of our control, that could cause actual results to differ materially from such statements and from our historical results and experience. These risks and uncertainties include such things as: our ability to successfully execute our Full Potential plan to achieve the desired results; the effects of the COVID-19 pandemic, including global supply chain disruptions; inflation and its impact on the costs of materials, consumer spending and margins; the highly competitive and evolving nature of the industry in which we compete; the rapidly changing retail environment; our reliance on a relatively small number of customers for a significant portion of our sales; any inadequacy, interruption, integration failure or security failure with respect to our information technology; the impact of significant fluctuations and volatility in various input costs, such as cotton and oil-related materials, utilities, freight and wages; our ability to attract and retain a senior management team with the core competencies needed to support growth in global markets; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations; our ability to effectively manage our complex multinational tax structure; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and HanesBrands undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.
HanesBrands (NYSE: HBI) makes everyday apparel that is known and loved by consumers around the world for comfort, quality and value. Among the Company’s iconic brands are Hanes, the leading basic apparel brand in the United States; Champion, an innovator at the intersection of lifestyle and athletic apparel; and Bonds, which is setting new standards for design and sustainability. HBI employs 59,000 associates in 33 countries and has built a strong reputation for workplace quality and ethical business practices. The Company, a longtime leader in sustainability, launched aggressive 2030 goals to improve the lives of people, protect the planet and produce sustainable products. HBI is building on its unmatched strengths to unlock its #FullPotential and deliver long-term growth that benefits all of its stakeholders.
TABLE 1 |
||||||||||
HANESBRANDS INC. |
||||||||||
Condensed Consolidated Statements of Income |
||||||||||
(in thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
% Change |
|||||
Net sales |
$ |
1,576,156 |
|
|
$ |
1,508,029 |
|
|
4.5 |
% |
Cost of sales |
|
991,978 |
|
|
|
905,348 |
|
|
|
|
Gross profit |
|
584,178 |
|
|
|
602,681 |
|
|
(3.1 |
)% |
As a % of net sales |
|
37.1 |
% |
|
|
40.0 |
% |
|
|
|
Selling, general and administrative expenses |
|
413,666 |
|
|
|
412,559 |
|
|
|
|
As a % of net sales |
|
26.2 |
% |
|
|
27.4 |
% |
|
|
|
Operating profit |
|
170,512 |
|
|
|
190,122 |
|
|
(10.3 |
)% |
As a % of net sales |
|
10.8 |
% |
|
|
12.6 |
% |
|
|
|
Other expenses |
|
987 |
|
|
|
2,561 |
|
|
|
|
Interest expense, net |
|
31,963 |
|
|
|
44,460 |
|
|
|
|
Income from continuing operations before income tax expense |
|
137,562 |
|
|
|
143,101 |
|
|
|
|
Income tax expense |
|
23,385 |
|
|
|
14,697 |
|
|
|
|
Income from continuing operations |
|
114,177 |
|
|
|
128,404 |
|
|
(11.1 |
)% |
Income (loss) from discontinued operations, net of tax |
|
4,525 |
|
|
|
(391,666 |
) |
|
|
|
Net income (loss) |
$ |
118,702 |
|
|
$ |
(263,262 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - basic: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.33 |
|
|
$ |
0.37 |
|
|
|
|
Discontinued operations |
|
0.01 |
|
|
|
(1.12 |
) |
|
|
|
Net income (loss) |
$ |
0.34 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - diluted: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.32 |
|
|
$ |
0.37 |
|
|
|
|
Discontinued operations |
|
0.01 |
|
|
|
(1.11 |
) |
|
|
|
Net income (loss) |
$ |
0.34 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|||||
Basic |
|
350,251 |
|
|
|
351,003 |
|
|
|
|
Diluted |
|
351,453 |
|
|
|
351,686 |
|
|
|
TABLE 2 |
The following tables present a reconciliation of reported results on a constant currency basis for the quarter ended April 2, 2022 and a comparison to prior year: |
|
Quarter Ended April 2, 2022 |
|
|
|
|
|
|
|||||||||||
|
As Reported |
|
Impact from
|
|
Constant
|
|
Quarter
|
|
% Change,
|
|
% Change,
|
|||||||
As reported under GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
$ |
1,576,156 |
|
$ |
(30,460 |
) |
|
$ |
1,606,616 |
|
$ |
1,508,029 |
|
4.5 |
% |
|
6.5 |
% |
Gross profit |
|
584,178 |
|
|
(15,361 |
) |
|
|
599,539 |
|
|
602,681 |
|
(3.1 |
) |
|
(0.5 |
) |
Operating profit |
|
170,512 |
|
|
(4,551 |
) |
|
|
175,063 |
|
|
190,122 |
|
(10.3 |
) |
|
(7.9 |
) |
Diluted earnings per share from continuing operations |
$ |
0.32 |
|
$ |
(0.01 |
) |
|
$ |
0.34 |
|
$ |
0.37 |
|
(13.5 |
)% |
|
(8.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
As adjusted:2 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
$ |
1,576,156 |
|
$ |
(30,460 |
) |
|
$ |
1,606,616 |
|
$ |
1,508,029 |
|
4.5 |
% |
|
6.5 |
% |
Gross profit |
|
584,677 |
|
|
(15,361 |
) |
|
|
600,038 |
|
|
605,488 |
|
(3.4 |
) |
|
(0.9 |
) |
Operating profit |
|
175,314 |
|
|
(4,551 |
) |
|
|
179,865 |
|
|
209,515 |
|
(16.3 |
) |
|
(14.2 |
) |
Diluted earnings per share from continuing operations |
$ |
0.34 |
|
$ |
(0.01 |
) |
|
$ |
0.35 |
|
$ |
0.39 |
|
(12.8 |
)% |
|
(10.3 |
)% |
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 |
Results for the quarters ended April 2, 2022 and April 3, 2021 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 6. |
TABLE 3 |
||||||||||
HANESBRANDS INC. |
||||||||||
Supplemental Financial Information |
||||||||||
By Business Segment |
||||||||||
(in thousands) |
||||||||||
(Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
% Change |
|||||
Segment net sales: |
|
|
|
|
|
|||||
Innerwear |
$ |
578,947 |
|
|
$ |
570,435 |
|
|
1.5 |
% |
Activewear |
|
386,937 |
|
|
|
364,003 |
|
|
6.3 |
|
International |
|
510,129 |
|
|
|
506,261 |
|
|
0.8 |
|
Other |
|
100,143 |
|
|
|
67,330 |
|
|
48.7 |
|
Total net sales |
$ |
1,576,156 |
|
|
$ |
1,508,029 |
|
|
4.5 |
% |
|
|
|
|
|
|
|||||
Segment operating profit: |
|
|
|
|
|
|||||
Innerwear |
$ |
102,146 |
|
|
$ |
127,417 |
|
|
(19.8 |
)% |
Activewear |
|
48,984 |
|
|
|
60,594 |
|
|
(19.2 |
) |
International |
|
89,438 |
|
|
|
87,180 |
|
|
2.6 |
|
Other |
|
(671 |
) |
|
|
1,886 |
|
|
(135.6 |
) |
General corporate expenses/other |
|
(64,583 |
) |
|
|
(67,562 |
) |
|
(4.4 |
) |
Total operating profit before restructuring and other action-related charges |
|
175,314 |
|
|
|
209,515 |
|
|
(16.3 |
) |
Restructuring and other action-related charges |
|
(4,802 |
) |
|
|
(19,393 |
) |
|
(75.2 |
) |
Total operating profit |
$ |
170,512 |
|
|
$ |
190,122 |
|
|
(10.3 |
)% |
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
Basis
|
|||||
Segment operating margin: |
|
|
|
|
|
|||||
Innerwear |
|
17.6 |
% |
|
|
22.3 |
% |
|
(469 |
) |
Activewear |
|
12.7 |
|
|
|
16.6 |
|
|
(399 |
) |
International |
|
17.5 |
|
|
|
17.2 |
|
|
31 |
|
Other |
|
(0.7 |
) |
|
|
2.8 |
|
|
(347 |
) |
General corporate expenses/other |
|
(4.1 |
) |
|
|
(4.5 |
) |
|
38 |
|
Total operating margin before restructuring and other action-related charges |
|
11.1 |
|
|
|
13.9 |
|
|
(277 |
) |
Restructuring and other action-related charges |
|
(0.3 |
) |
|
|
(1.3 |
) |
|
98 |
|
Total operating margin |
|
10.8 |
% |
|
|
12.6 |
% |
|
(179 |
) |
TABLE 4 |
|||||||
HANESBRANDS INC. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
April 2,
|
|
January 1,
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
369,210 |
|
|
$ |
536,277 |
|
Trade accounts receivable, net |
|
898,420 |
|
|
|
894,151 |
|
Inventories |
|
1,819,974 |
|
|
|
1,584,015 |
|
Other current assets |
|
202,015 |
|
|
|
186,503 |
|
Current assets held for sale |
|
7,959 |
|
|
|
327,157 |
|
Total current assets |
|
3,297,578 |
|
|
|
3,528,103 |
|
Property, net |
|
443,817 |
|
|
|
441,401 |
|
Right-of-use assets |
|
350,174 |
|
|
|
363,854 |
|
Trademarks and other identifiable intangibles, net |
|
1,235,276 |
|
|
|
1,220,170 |
|
Goodwill |
|
1,138,667 |
|
|
|
1,133,095 |
|
Deferred tax assets |
|
326,677 |
|
|
|
327,804 |
|
Other noncurrent assets |
|
67,520 |
|
|
|
57,009 |
|
Total assets |
$ |
6,859,709 |
|
|
$ |
7,071,436 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Accounts payable |
$ |
1,204,196 |
|
|
$ |
1,214,847 |
|
Accrued liabilities |
|
575,911 |
|
|
|
660,778 |
|
Lease liabilities |
|
117,465 |
|
|
|
109,526 |
|
Accounts Receivable Securitization Facility |
|
135,500 |
|
|
|
— |
|
Current portion of long-term debt |
|
25,000 |
|
|
|
25,000 |
|
Current liabilities held for sale |
|
7,959 |
|
|
|
316,902 |
|
Total current liabilities |
|
2,066,031 |
|
|
|
2,327,053 |
|
Long-term debt |
|
3,325,042 |
|
|
|
3,326,091 |
|
Lease liabilities - noncurrent |
|
258,663 |
|
|
|
281,852 |
|
Pension and postretirement benefits |
|
242,690 |
|
|
|
248,518 |
|
Other noncurrent liabilities |
|
187,867 |
|
|
|
185,429 |
|
Total liabilities |
|
6,080,293 |
|
|
|
6,368,943 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
3,488 |
|
|
|
3,499 |
|
Additional paid-in capital |
|
315,675 |
|
|
|
315,337 |
|
Retained earnings |
|
976,944 |
|
|
|
935,260 |
|
Accumulated other comprehensive loss |
|
(516,691 |
) |
|
|
(551,603 |
) |
Total stockholders’ equity |
|
779,416 |
|
|
|
702,493 |
|
Total liabilities and stockholders’ equity |
$ |
6,859,709 |
|
|
$ |
7,071,436 |
|
TABLE 5 |
|||||||
HANESBRANDS INC. |
|||||||
Condensed Consolidated Statements of Cash Flows1 |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
Quarters Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
118,702 |
|
|
$ |
(263,262 |
) |
Adjustments to reconcile net income (loss) to net cash from operating activities: |
|
|
|
||||
Depreciation |
|
18,931 |
|
|
|
24,142 |
|
Amortization of acquisition intangibles |
|
4,847 |
|
|
|
6,179 |
|
Other amortization |
|
2,508 |
|
|
|
3,020 |
|
Impairment of intangible assets and goodwill |
|
— |
|
|
|
163,047 |
|
(Gain) loss on sale of business and classification of assets held for sale |
|
(6,715 |
) |
|
|
226,352 |
|
Amortization of debt issuance costs |
|
1,887 |
|
|
|
4,580 |
|
Other |
|
6,940 |
|
|
|
(5,835 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(6,090 |
) |
|
|
(63,955 |
) |
Inventories |
|
(247,567 |
) |
|
|
(122,781 |
) |
Other assets |
|
(489 |
) |
|
|
9,606 |
|
Accounts payable |
|
(310 |
) |
|
|
109,197 |
|
Accrued pension and postretirement benefits |
|
24 |
|
|
|
(38,757 |
) |
Accrued liabilities and other |
|
(123,857 |
) |
|
|
(34,587 |
) |
Net cash from operating activities |
|
(231,189 |
) |
|
|
16,946 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(19,337 |
) |
|
|
(17,804 |
) |
Proceeds from sales of assets |
|
19 |
|
|
|
2,406 |
|
Other |
|
(10,272 |
) |
|
|
1,794 |
|
Net cash from investing activities |
|
(29,590 |
) |
|
|
(13,604 |
) |
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Repayments on Term Loan Facilities |
|
(6,250 |
) |
|
|
(300,000 |
) |
Borrowings on Accounts Receivable Securitization Facility |
|
290,000 |
|
|
|
— |
|
Repayments on Accounts Receivable Securitization Facility |
|
(154,500 |
) |
|
|
— |
|
Borrowings on Revolving Loan Facilities |
|
129,000 |
|
|
|
— |
|
Repayments on Revolving Loan Facilities |
|
(109,000 |
) |
|
|
— |
|
Borrowings on notes payable |
|
21,454 |
|
|
|
21,106 |
|
Repayments on notes payable |
|
(21,713 |
) |
|
|
(20,276 |
) |
Share repurchases |
|
(25,018 |
) |
|
|
— |
|
Cash dividends paid |
|
(52,297 |
) |
|
|
(52,351 |
) |
Other |
|
(4,109 |
) |
|
|
(2,902 |
) |
Net cash from financing activities |
|
67,567 |
|
|
|
(354,423 |
) |
Effect of changes in foreign exchange rates on cash |
|
1,793 |
|
|
|
(17,662 |
) |
Change in cash, cash equivalents and restricted cash |
|
(191,419 |
) |
|
|
(368,743 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
560,629 |
|
|
|
910,603 |
|
Cash, cash equivalents and restricted cash at end of period |
|
369,210 |
|
|
|
541,860 |
|
Less restricted cash at end of period |
|
— |
|
|
|
1,153 |
|
Cash and cash equivalents at end of period |
$ |
369,210 |
|
|
$ |
540,707 |
|
|
|
|
|
||||
Balances included in the Condensed Consolidated Balance Sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
369,210 |
|
|
$ |
530,403 |
|
Cash and cash equivalents included in current assets held for sale |
|
— |
|
|
|
10,304 |
|
Cash and cash equivalents at end of period |
$ |
369,210 |
|
|
$ |
540,707 |
|
1 |
The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities in the periods prior the sale of the European Innerwear business on March 5, 2022. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
TABLE 6-A |
|||||||||||||||||||||||||||
HANESBRANDS INC. |
|||||||||||||||||||||||||||
Supplemental Financial Information |
|||||||||||||||||||||||||||
Reconciliation of Select GAAP Measures to Non-GAAP Measures |
|||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
Quarter Ended April 2, 2022 |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling,
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Income
|
|
Diluted
|
||||||||||||||
As reported |
$ |
584,178 |
|
|
$ |
(413,666 |
) |
|
$ |
170,512 |
|
|
$ |
137,562 |
|
|
$ |
(23,385 |
) |
|
$ |
114,177 |
|
|
$ |
0.32 |
|
As a percentage of net sales |
|
37.1 |
% |
|
|
26.2 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Full Potential Plan: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services |
|
— |
|
|
|
7,908 |
|
|
|
7,908 |
|
|
|
7,908 |
|
|
|
— |
|
|
|
7,908 |
|
|
|
0.02 |
|
Gain on classification of assets held for sale |
|
— |
|
|
|
(6,528 |
) |
|
|
(6,528 |
) |
|
|
(6,528 |
) |
|
|
— |
|
|
|
(6,528 |
) |
|
|
(0.02 |
) |
Operating model |
|
(265 |
) |
|
|
(1,654 |
) |
|
|
(1,919 |
) |
|
|
(1,919 |
) |
|
|
— |
|
|
|
(1,919 |
) |
|
|
(0.01 |
) |
Supply chain segmentation |
|
1,020 |
|
|
|
— |
|
|
|
1,020 |
|
|
|
1,020 |
|
|
|
— |
|
|
|
1,020 |
|
|
|
0.00 |
|
Technology |
|
— |
|
|
|
4,459 |
|
|
|
4,459 |
|
|
|
4,459 |
|
|
|
— |
|
|
|
4,459 |
|
|
|
0.01 |
|
Other |
|
(256 |
) |
|
|
118 |
|
|
|
(138 |
) |
|
|
(138 |
) |
|
|
— |
|
|
|
(138 |
) |
|
|
0.00 |
|
Tax effect on actions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(816 |
) |
|
|
(816 |
) |
|
|
0.00 |
|
Total restructuring and other action-related charges |
|
499 |
|
|
|
4,303 |
|
|
|
4,802 |
|
|
|
4,802 |
|
|
|
(816 |
) |
|
|
3,986 |
|
|
|
0.01 |
|
As adjusted |
$ |
584,677 |
|
|
$ |
(409,363 |
) |
|
$ |
175,314 |
|
|
$ |
142,364 |
|
|
$ |
(24,201 |
) |
|
$ |
118,163 |
|
|
$ |
0.34 |
|
As a percentage of net sales |
|
37.1 |
% |
|
|
26.0 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
||||||||
TABLE 6-B |
|||||||||||||||||||||||||||
|
Quarter Ended April 3, 2021 |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling,
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Income
|
|
Diluted
|
||||||||||||||
As reported |
$ |
602,681 |
|
|
$ |
(412,559 |
) |
|
$ |
190,122 |
|
|
$ |
143,101 |
|
|
$ |
(14,697 |
) |
|
$ |
128,404 |
|
|
$ |
0.37 |
|
As a percentage of net sales |
|
40.0 |
% |
|
|
27.4 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Full Potential Plan: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services |
|
— |
|
|
|
11,706 |
|
|
|
11,706 |
|
|
|
11,706 |
|
|
|
— |
|
|
|
11,706 |
|
|
|
0.03 |
|
Impairment of intangible assets |
|
— |
|
|
|
7,302 |
|
|
|
7,302 |
|
|
|
7,302 |
|
|
|
— |
|
|
|
7,302 |
|
|
|
0.02 |
|
Other |
|
2,807 |
|
|
|
(2,422 |
) |
|
|
385 |
|
|
|
385 |
|
|
|
— |
|
|
|
385 |
|
|
|
0.00 |
|
Discrete tax benefits |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,295 |
) |
|
|
(7,295 |
) |
|
|
(0.02 |
) |
Tax effect on actions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,007 |
) |
|
|
(4,007 |
) |
|
|
(0.01 |
) |
Total restructuring and other action-related charges |
|
2,807 |
|
|
|
16,586 |
|
|
|
19,393 |
|
|
|
19,393 |
|
|
|
(11,302 |
) |
|
|
8,091 |
|
|
|
0.02 |
|
As adjusted |
$ |
605,488 |
|
|
$ |
(395,973 |
) |
|
$ |
209,515 |
|
|
$ |
162,494 |
|
|
$ |
(25,999 |
) |
|
$ |
136,495 |
|
|
$ |
0.39 |
|
As a percentage of net sales |
|
40.2 |
% |
|
|
26.3 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
1 |
Amounts may not be additive due to rounding. |
Including the unfavorable foreign currency impact of $14.3 million, global Champion sales excluding C9 Champion increased approximately 3% in the first quarter of 2022 compared to the first quarter of 2021. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 6% in the first quarter of 2022 compared to the first quarter of 2021. |
TABLE 6-C |
|||||||
HANESBRANDS INC. |
|||||||
Supplemental Financial Information |
|||||||
Reconciliation of Select GAAP Measures to Non-GAAP Measures |
|||||||
(in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Last Twelve Months |
||||||
|
April 2,
|
|
April 3,
|
||||
EBITDA1: |
|
|
|
||||
Income from continuing operations |
$ |
506,741 |
|
|
$ |
90,999 |
|
Interest expense, net |
|
150,570 |
|
|
|
172,671 |
|
Income tax expense (benefit) |
|
68,795 |
|
|
|
(95,950 |
) |
Depreciation and amortization |
|
107,143 |
|
|
|
116,816 |
|
Total EBITDA |
|
833,249 |
|
|
|
284,536 |
|
Total restructuring and other action-related charges (excluding tax effect on actions) |
|
162,818 |
|
|
|
729,265 |
|
Stock compensation expense |
|
23,454 |
|
|
|
12,504 |
|
Total EBITDA, as adjusted |
$ |
1,019,521 |
|
|
$ |
1,026,305 |
|
|
|
|
|
||||
Net debt: |
|
|
|
||||
Debt (current and long-term debt and Accounts Receivable Securitization Facility) |
$ |
3,485,542 |
|
|
$ |
3,684,006 |
|
(Less) Cash and cash equivalents |
|
(369,210 |
) |
|
|
(530,403 |
) |
Net debt |
$ |
3,116,332 |
|
|
$ |
3,153,603 |
|
|
|
|
|
||||
Net debt/EBITDA, as adjusted |
|
3.1 |
|
|
|
3.1 |
|
1 |
Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. |
|
Quarters Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Free cash flow1: |
|
|
|
||||
Net cash from operating activities |
$ |
(231,189 |
) |
|
$ |
16,946 |
|
Capital expenditures |
|
(19,337 |
) |
|
|
(17,804 |
) |
Free cash flow |
$ |
(250,526 |
) |
|
$ |
(858 |
) |
1 |
Free cash flow includes the results from continuing and discontinued operations. |
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 |
|
July 2,
|
|
December 31,
|
Operating profit outlook, as calculated under GAAP |
$155,000 to $175,000 |
|
$780,000 to $850,000 |
Restructuring and other action-related charges |
$15,000 |
|
$60,000 |
Operating profit outlook, as adjusted |
$170,000 to $190,000 |
|
$840,000 to $910,000 |
|
|
|
|
Diluted earnings per share from continuing operations, as calculated under GAAP1 |
$0.28 to $0.32 |
|
$1.50 to $1.67 |
Restructuring and other action-related charges |
$0.04 |
|
$0.14 |
Diluted earnings per share from continuing operations, as adjusted |
$0.32 to $0.36 |
|
$1.64 to $1.81 |
1 |
The company expects approximately 351 million diluted weighted average shares outstanding for the quarter ended July 2, 2022 and the year ended December 31, 2022. |
Чистый объем продаж от продолжающейся деятельности в размере 1,58 миллиарда долларов увеличился на 5% по сравнению с предыдущим годом; рост на 7% на постоянной валютной основе
Прибыль на акцию по ОПБУ от продолжающейся деятельности составила 0,32 доллара США; Скорректированная прибыль на прибыль от продолжающейся деятельности составила 0,34 доллара США
Продажи бренда Global Champion увеличились на 6% по сравнению с предыдущим годом в постоянной валюте; рост на двухлетней основе ускоряется второй квартал подряд до 28%
Продажи внутренней одежды в США увеличились на 1,5% по сравнению с предыдущим годом и на 37% за два года, что обусловлено увеличением торговых площадей, ростом цен и ассортимента продукции
За квартал было выкуплено акций на сумму 25 миллионов долларов, или примерно 1,6 миллиона акций.
Содержит рекомендации на второй квартал 2022 года. Чистые продажи в неизменной валюте соответствуют предыдущему году, поскольку основные бизнес-показатели позволяют Компании отметить существенный рост на 88% в прошлом году, без учета продаж СИЗ; Прибыль на акцию по GAAP от 0,28 до 0,32 доллара США; Скорректированная прибыль на акцию от 0,32 до 0,36 доллара США
Подтверждает ориентировочные диапазоны продаж, операционной прибыли и прибыли на акцию на весь 2022 год. Ожидает, что продажи приблизятся к середине своего диапазона. Возросшие проблемы в глобальной операционной среде привели к дополнительным встречным ветрам в размере 65 миллионов долларов США; ожидается, что операционная прибыль и прибыль на акцию приблизятся к нижней границе прогнозируемого диапазона
Для сверки отдельных показателей GAAP и показателей, не относящихся к GAAP, см. Таблицу 6 этого выпуска
УИНСТОН-СЕЙЛЕМ, Северная Каролина -- (BUSINESS WIRE)--Hanesbrands Inc. (NYSE: HBI), мировой лидер в производстве культовых брендов одежды, сегодня объявила результаты за первый квартал 2022 года.
“Я очень горжусь нашей командой за то, что она провела еще один сильный квартал в невероятно сложное время, поскольку мы превзошли ожидания по продажам и прибыли на акцию”, - сказал Стив Братспис, генеральный директор. “В этом квартале мы наблюдали сохраняющийся высокий спрос на наши бренды, при этом рост global Champion и innerwear ускорился на двухлетней основе”.
Братспис продолжил: “В то же время за последние три месяца глобальная операционная среда значительно ухудшилась из-за ускорения инфляции, продолжающихся сбоев в работе из-за COVID-19 и логистических проблем. В этой среде мы очень сосредоточены на выполнении работ в тех областях, которые мы контролируем. Мы непоколебимы в нашей приверженности инвестированию в наших сотрудников, бренды и технологии, и я по-прежнему уверен, что мы полностью реализуем наш Потенциальный план”.
Основные события первого квартала
Результаты первого квартала 2022 года
Смотрите Примечание о скорректированных показателях и сверке с показателями GAAP позже в этом пресс-релизе для дополнительного обсуждения и подробных сведений о действиях, которые включают в себя Все возможные расходы по плану.
Сводная информация по бизнес-сегментам за первый квартал 2022 года
Движение денежных средств, Баланс и Доходность акционерного капитала
Финансовый прогноз на Второй квартал и весь 2022 год
Во втором квартале 2022 года, который заканчивается 2 июля 2022 года, Компания в настоящее время ожидает:
На 2022 финансовый год, который заканчивается 31 декабря 2022 года, Компания в настоящее время ожидает:
Hanesbrands обновил свой ежеквартальный документ с часто задаваемыми вопросами, который доступен по адресу www.Hanes.com/FAQ .
Примечание о скорректированных показателях и сверке с показателями GAAP
В дополнение к финансовым результатам, подготовленным в соответствии с общепринятыми принципами бухгалтерского учета, Компания предоставляет квартальные и годовые результаты, касающиеся определенных финансовых показателей, не относящихся к GAAP, включая скорректированную прибыль на акцию от продолжающейся деятельности, скорректированный доход от продолжающейся деятельности, скорректированный расход по налогу на прибыль, скорректированный доход от продолжающейся деятельности до вычета налога на прибыль, скорректированный операционный прибыль (и маржа), скорректированные SG&A, скорректированная валовая прибыль (и маржа), EBITDA и скорректированная EBITDA.
Скорректированная прибыль на прибыль от продолжающейся деятельности определяется как разводненная прибыль на прибыль от продолжающейся деятельности без учета действий и налогового эффекта от действий. Скорректированный доход от продолжающейся деятельности определяется как доход от продолжающейся деятельности без учета действий и налогового эффекта от действий. Скорректированные расходы по налогу на прибыль определяются как расходы по налогу на прибыль без учета действий. Скорректированный доход от продолжающейся деятельности до вычета налога на прибыль определяется как доход от продолжающейся деятельности до вычета налога на прибыль без учета действий. Скорректированная операционная прибыль определяется как операционная прибыль без учета действий. Скорректированные SG&A определяются как коммерческие, общие и административные расходы без учета действий. Скорректированная валовая прибыль определяется как валовая прибыль без учета действий.
Сборы за действия, предпринятые в 2022 и 2021 годах, включают профессиональные сборы, сборы за операционную модель, (прибыль) / убыток от классификации активов, предназначенных для продажи, расходы на сегментацию цепочки поставок, технологические расходы и расходы на обесценение нематериальных активов, связанные с нашим Полным Потенциальным планом.
Хотя ожидается, что эти расходы не будут продолжаться для какой-либо отдельной операции на постоянной основе, аналогичные виды затрат, расходов и сборов имели место в предыдущие периоды и могут повториться в будущих периодах в зависимости от будущих бизнес-планов и обстоятельств.
Hanesbrands решил представить эти показатели, не относящиеся к GAAP, инвесторам, чтобы обеспечить дополнительный анализ прошлых, настоящих и будущих операционных показателей, а также в качестве дополнительного средства оценки операций, не учитывающих влияние Полного Потенциального плана и других действий. Hanesbrands считает, что эти показатели, не относящиеся к GAAP, предоставляют руководству и инвесторам ценную дополнительную информацию для анализа операционных показателей текущей деятельности Компании в течение каждого представленного периода без учета затрат, связанных с выполнением любого из вышеупомянутых предпринятых действий.
Компания также решила представить инвесторам показатель EBITDA и скорректированный показатель EBITDA, поскольку считает эти показатели важным дополнительным средством оценки операционных показателей. Показатель EBITDA определяется как доход от продолжающейся деятельности до вычета процентов, налогов, износа и амортизации. Скорректированный показатель EBITDA определяется как показатель EBITDA без учета акций и расходов на компенсацию запасов. Hanesbrands считает, что EBITDA и скорректированная EBITDA часто используются аналитиками ценных бумаг, инвесторами и другими заинтересованными сторонами при оценке компаний в отрасли, а руководство использует EBITDA и скорректированную EBITDA для целей планирования в связи с определением стратегии распределения капитала. Однако показатель EBITDA и скорректированный показатель EBITDA не следует рассматривать как показатели дискреционных денежных средств, доступных для инвестирования в развитие бизнеса.
Hanesbrands - это глобальная компания, которая представляет финансовую информацию в долларах США в соответствии с GAAP. В качестве дополнения к отчетным операционным результатам Компании Hanesbrands также представляет финансовую информацию в постоянной валюте, которая является финансовым показателем, не относящимся к GAAP, и исключает влияние перевода иностранных валют в доллары США. Компания использует информацию в постоянной валюте, чтобы обеспечить основу для оценки эффективности бизнеса, исключая влияние изменений курсов, используемых для расчета пересчета иностранной валюты.
Для расчета пересчета иностранной валюты на основе постоянной валюты операционные результаты за период текущего года для организаций, отчитывающихся в валютах, отличных от доллара США, пересчитываются в доллары США по средним обменным курсам, действовавшим в течение сопоставимого периода предыдущего года (а не по фактическим обменным курсам, действовавшим в течение отчетного периода). период текущего года).
Hanesbrands считает, что информация о постоянной валюте полезна руководству и инвесторам для облегчения сравнения операционных результатов и лучшего определения тенденций в бизнесе Компании.
Финансовые показатели, не относящиеся к ОПБУ, имеют ограничения в качестве аналитических инструментов и не должны рассматриваться изолированно или в качестве альтернативы или замены финансовых результатов, подготовленных в соответствии с ОПБУ. Кроме того, представленные показатели, не относящиеся к GAAP, могут отличаться от показателей, не относящихся к GAAP, с аналогичными или идентичными названиями, представленных другими компаниями.
Сверка этих показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями GAAP представлена в дополнительной финансовой информации, прилагаемой к этому пресс-релизу.
Предостерегающее Заявление В Отношении Прогнозных Заявлений
Этот пресс-релиз содержит определенные прогнозные заявления, определенные в соответствии с федеральным законодательством США о ценных бумагах, в отношении наших долгосрочных целей и тенденций, связанных с нашим бизнесом, а также рекомендации относительно будущих результатов. В частности, среди прочего, рекомендации и прогнозы относительно ожидаемых операционных результатов, в том числе связанные с нашим Полным Потенциальным планом, и заявления, сделанные во Втором квартале и в разделе "Финансовые перспективы на 2022 год" этого пресс-релиза, являются прогнозными заявлениями. Эти прогнозные заявления основаны на наших текущих намерениях, убеждениях, планах и ожиданиях. Читателей предостерегают от чрезмерного доверия к каким-либо прогнозным заявлениям. Прогнозные заявления обязательно связаны с рисками и неопределенностями, многие из которых находятся вне нашего контроля, что может привести к тому, что фактические результаты будут существенно отличаться от таких заявлений, а также от наших исторических результатов и опыта. Эти риски и неопределенности включают в себя такие вещи, как: наша способность успешно выполнить наш план полного потенциала для достижения желаемых результатов; последствия пандемии COVID-19, включая сбои в глобальных цепочках поставок; инфляция и ее влияние на стоимость материалов, потребительские расходы и маржу; высококонкурентный и развивающийся характер отрасли, в которой мы конкурируем; быстро меняющаяся среда розничной торговли; наша зависимость от относительно небольшого числа клиентов для значительной части наших продаж; любая неадекватность, прерывание, сбой интеграции или сбой безопасности в отношении наших информационных технологий; влияние значительных колебаний и нестабильности различных затрат на ввод, таких как материалы, связанные с хлопком и нефтью, коммунальные услуги, грузоперевозки и заработная плата; наша способность привлекать и удерживать команду высшего руководства с ключевыми компетенциями, необходимыми для поддержки роста на мировых рынках; значительные колебания валютных курсов; юридические, нормативные, политические и экономические риски, связанные с нашими международными операциями; наша способность для эффективного управления нашей сложной многонациональной налоговой структурой; и другие риски, время от времени выявляемые в наших последних отчетах Комиссии по ценным бумагам и биржам, включая наш годовой отчет по форме 10-K и квартальные отчеты по форме 10-Q. Поскольку невозможно предсказать или идентифицировать все риски, неопределенности и другие факторы, которые могут повлиять на будущие результаты, приведенный выше список не следует считать полным. Любое прогнозное заявление относится только к дате, на которую сделано такое заявление, и Hanesbrands не берет на себя никаких обязательств по обновлению или пересмотру любого прогнозного заявления, будь то в результате новой информации, будущих событий или иным образом, кроме как в соответствии с требованиями закона.
Hanesbrands (NYSE: HBI) производит повседневную одежду, которую знают и любят потребители по всему миру за комфорт, качество и ценность. Среди знаковых брендов компании - Hanes, ведущий бренд базовой одежды в Соединенных Штатах; Champion, новатор на стыке стиля жизни и спортивной одежды; и Bonds, который устанавливает новые стандарты дизайна и экологичности. В HBI работают 59 000 сотрудников в 33 странах, и компания завоевала прочную репутацию благодаря качеству рабочих мест и этичным деловым практикам. Компания, давний лидер в области устойчивого развития, поставила перед собой амбициозные цели на период до 2030 года, направленные на улучшение жизни людей, защиту планеты и производство экологически чистых продуктов. HBI использует свои непревзойденные сильные стороны, чтобы полностью раскрыть свой потенциал и обеспечить долгосрочный рост, который принесет пользу всем заинтересованным сторонам.
TABLE 1 |
||||||||||
Hanesbrands INC. |
||||||||||
Condensed Consolidated Statements of Income |
||||||||||
(in thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
% Change |
|||||
Net sales |
$ |
1,576,156 |
|
|
$ |
1,508,029 |
|
|
4.5 |
% |
Cost of sales |
|
991,978 |
|
|
|
905,348 |
|
|
|
|
Gross profit |
|
584,178 |
|
|
|
602,681 |
|
|
(3.1 |
)% |
As a % of net sales |
|
37.1 |
% |
|
|
40.0 |
% |
|
|
|
Selling, general and administrative expenses |
|
413,666 |
|
|
|
412,559 |
|
|
|
|
As a % of net sales |
|
26.2 |
% |
|
|
27.4 |
% |
|
|
|
Operating profit |
|
170,512 |
|
|
|
190,122 |
|
|
(10.3 |
)% |
As a % of net sales |
|
10.8 |
% |
|
|
12.6 |
% |
|
|
|
Other expenses |
|
987 |
|
|
|
2,561 |
|
|
|
|
Interest expense, net |
|
31,963 |
|
|
|
44,460 |
|
|
|
|
Income from continuing operations before income tax expense |
|
137,562 |
|
|
|
143,101 |
|
|
|
|
Income tax expense |
|
23,385 |
|
|
|
14,697 |
|
|
|
|
Income from continuing operations |
|
114,177 |
|
|
|
128,404 |
|
|
(11.1 |
)% |
Income (loss) from discontinued operations, net of tax |
|
4,525 |
|
|
|
(391,666 |
) |
|
|
|
Net income (loss) |
$ |
118,702 |
|
|
$ |
(263,262 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - basic: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.33 |
|
|
$ |
0.37 |
|
|
|
|
Discontinued operations |
|
0.01 |
|
|
|
(1.12 |
) |
|
|
|
Net income (loss) |
$ |
0.34 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share - diluted: |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.32 |
|
|
$ |
0.37 |
|
|
|
|
Discontinued operations |
|
0.01 |
|
|
|
(1.11 |
) |
|
|
|
Net income (loss) |
$ |
0.34 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|||||
Basic |
|
350,251 |
|
|
|
351,003 |
|
|
|
|
Diluted |
|
351,453 |
|
|
|
351,686 |
|
|
|
TABLE 2 |
The following tables present a reconciliation of reported results on a constant currency basis for the quarter ended April 2, 2022 and a comparison to prior year: |
|
Quarter Ended April 2, 2022 |
|
|
|
|
|
|
|||||||||||
|
As Reported |
|
Impact from
|
|
Constant
|
|
Quarter
|
|
% Change,
|
|
% Change,
|
|||||||
As reported under GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
$ |
1,576,156 |
|
$ |
(30,460 |
) |
|
$ |
1,606,616 |
|
$ |
1,508,029 |
|
4.5 |
% |
|
6.5 |
% |
Gross profit |
|
584,178 |
|
|
(15,361 |
) |
|
|
599,539 |
|
|
602,681 |
|
(3.1 |
) |
|
(0.5 |
) |
Operating profit |
|
170,512 |
|
|
(4,551 |
) |
|
|
175,063 |
|
|
190,122 |
|
(10.3 |
) |
|
(7.9 |
) |
Diluted earnings per share from continuing operations |
$ |
0.32 |
|
$ |
(0.01 |
) |
|
$ |
0.34 |
|
$ |
0.37 |
|
(13.5 |
)% |
|
(8.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
As adjusted:2 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
$ |
1,576,156 |
|
$ |
(30,460 |
) |
|
$ |
1,606,616 |
|
$ |
1,508,029 |
|
4.5 |
% |
|
6.5 |
% |
Gross profit |
|
584,677 |
|
|
(15,361 |
) |
|
|
600,038 |
|
|
605,488 |
|
(3.4 |
) |
|
(0.9 |
) |
Operating profit |
|
175,314 |
|
|
(4,551 |
) |
|
|
179,865 |
|
|
209,515 |
|
(16.3 |
) |
|
(14.2 |
) |
Diluted earnings per share from continuing operations |
$ |
0.34 |
|
$ |
(0.01 |
) |
|
$ |
0.35 |
|
$ |
0.39 |
|
(12.8 |
)% |
|
(10.3 |
)% |
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 |
Results for the quarters ended April 2, 2022 and April 3, 2021 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 6. |
TABLE 3 |
||||||||||
Hanesbrands INC. |
||||||||||
Supplemental Financial Information |
||||||||||
By Business Segment |
||||||||||
(in thousands) |
||||||||||
(Unaudited) |
||||||||||
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
% Change |
|||||
Segment net sales: |
|
|
|
|
|
|||||
Innerwear |
$ |
578,947 |
|
|
$ |
570,435 |
|
|
1.5 |
% |
Activewear |
|
386,937 |
|
|
|
364,003 |
|
|
6.3 |
|
International |
|
510,129 |
|
|
|
506,261 |
|
|
0.8 |
|
Other |
|
100,143 |
|
|
|
67,330 |
|
|
48.7 |
|
Total net sales |
$ |
1,576,156 |
|
|
$ |
1,508,029 |
|
|
4.5 |
% |
|
|
|
|
|
|
|||||
Segment operating profit: |
|
|
|
|
|
|||||
Innerwear |
$ |
102,146 |
|
|
$ |
127,417 |
|
|
(19.8 |
)% |
Activewear |
|
48,984 |
|
|
|
60,594 |
|
|
(19.2 |
) |
International |
|
89,438 |
|
|
|
87,180 |
|
|
2.6 |
|
Other |
|
(671 |
) |
|
|
1,886 |
|
|
(135.6 |
) |
General corporate expenses/other |
|
(64,583 |
) |
|
|
(67,562 |
) |
|
(4.4 |
) |
Total operating profit before restructuring and other action-related charges |
|
175,314 |
|
|
|
209,515 |
|
|
(16.3 |
) |
Restructuring and other action-related charges |
|
(4,802 |
) |
|
|
(19,393 |
) |
|
(75.2 |
) |
Total operating profit |
$ |
170,512 |
|
|
$ |
190,122 |
|
|
(10.3 |
)% |
|
Quarters Ended |
|
|
|||||||
|
April 2,
|
|
April 3,
|
|
Basis
|
|||||
Segment operating margin: |
|
|
|
|
|
|||||
Innerwear |
|
17.6 |
% |
|
|
22.3 |
% |
|
(469 |
) |
Activewear |
|
12.7 |
|
|
|
16.6 |
|
|
(399 |
) |
International |
|
17.5 |
|
|
|
17.2 |
|
|
31 |
|
Other |
|
(0.7 |
) |
|
|
2.8 |
|
|
(347 |
) |
General corporate expenses/other |
|
(4.1 |
) |
|
|
(4.5 |
) |
|
38 |
|
Total operating margin before restructuring and other action-related charges |
|
11.1 |
|
|
|
13.9 |
|
|
(277 |
) |
Restructuring and other action-related charges |
|
(0.3 |
) |
|
|
(1.3 |
) |
|
98 |
|
Total operating margin |
|
10.8 |
% |
|
|
12.6 |
% |
|
(179 |
) |
TABLE 4 |
|||||||
Hanesbrands INC. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
April 2,
|
|
January 1,
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
369,210 |
|
|
$ |
536,277 |
|
Trade accounts receivable, net |
|
898,420 |
|
|
|
894,151 |
|
Inventories |
|
1,819,974 |
|
|
|
1,584,015 |
|
Other current assets |
|
202,015 |
|
|
|
186,503 |
|
Current assets held for sale |
|
7,959 |
|
|
|
327,157 |
|
Total current assets |
|
3,297,578 |
|
|
|
3,528,103 |
|
Property, net |
|
443,817 |
|
|
|
441,401 |
|
Right-of-use assets |
|
350,174 |
|
|
|
363,854 |
|
Trademarks and other identifiable intangibles, net |
|
1,235,276 |
|
|
|
1,220,170 |
|
Goodwill |
|
1,138,667 |
|
|
|
1,133,095 |
|
Deferred tax assets |
|
326,677 |
|
|
|
327,804 |
|
Other noncurrent assets |
|
67,520 |
|
|
|
57,009 |
|
Total assets |
$ |
6,859,709 |
|
|
$ |
7,071,436 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Accounts payable |
$ |
1,204,196 |
|
|
$ |
1,214,847 |
|
Accrued liabilities |
|
575,911 |
|
|
|
660,778 |
|
Lease liabilities |
|
117,465 |
|
|
|
109,526 |
|
Accounts Receivable Securitization Facility |
|
135,500 |
|
|
|
— |
|
Current portion of long-term debt |
|
25,000 |
|
|
|
25,000 |
|
Current liabilities held for sale |
|
7,959 |
|
|
|
316,902 |
|
Total current liabilities |
|
2,066,031 |
|
|
|
2,327,053 |
|
Long-term debt |
|
3,325,042 |
|
|
|
3,326,091 |
|
Lease liabilities - noncurrent |
|
258,663 |
|
|
|
281,852 |
|
Pension and postretirement benefits |
|
242,690 |
|
|
|
248,518 |
|
Other noncurrent liabilities |
|
187,867 |
|
|
|
185,429 |
|
Total liabilities |
|
6,080,293 |
|
|
|
6,368,943 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
3,488 |
|
|
|
3,499 |
|
Additional paid-in capital |
|
315,675 |
|
|
|
315,337 |
|
Retained earnings |
|
976,944 |
|
|
|
935,260 |
|
Accumulated other comprehensive loss |
|
(516,691 |
) |
|
|
(551,603 |
) |
Total stockholders’ equity |
|
779,416 |
|
|
|
702,493 |
|
Total liabilities and stockholders’ equity |
$ |
6,859,709 |
|
|
$ |
7,071,436 |
|
TABLE 5 |
|||||||
Hanesbrands INC. |
|||||||
Condensed Consolidated Statements of Cash Flows1 |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
Quarters Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
118,702 |
|
|
$ |
(263,262 |
) |
Adjustments to reconcile net income (loss) to net cash from operating activities: |
|
|
|
||||
Depreciation |
|
18,931 |
|
|
|
24,142 |
|
Amortization of acquisition intangibles |
|
4,847 |
|
|
|
6,179 |
|
Other amortization |
|
2,508 |
|
|
|
3,020 |
|
Impairment of intangible assets and goodwill |
|
— |
|
|
|
163,047 |
|
(Gain) loss on sale of business and classification of assets held for sale |
|
(6,715 |
) |
|
|
226,352 |
|
Amortization of debt issuance costs |
|
1,887 |
|
|
|
4,580 |
|
Other |
|
6,940 |
|
|
|
(5,835 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(6,090 |
) |
|
|
(63,955 |
) |
Inventories |
|
(247,567 |
) |
|
|
(122,781 |
) |
Other assets |
|
(489 |
) |
|
|
9,606 |
|
Accounts payable |
|
(310 |
) |
|
|
109,197 |
|
Accrued pension and postretirement benefits |
|
24 |
|
|
|
(38,757 |
) |
Accrued liabilities and other |
|
(123,857 |
) |
|
|
(34,587 |
) |
Net cash from operating activities |
|
(231,189 |
) |
|
|
16,946 |
|
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(19,337 |
) |
|
|
(17,804 |
) |
Proceeds from sales of assets |
|
19 |
|
|
|
2,406 |
|
Other |
|
(10,272 |
) |
|
|
1,794 |
|
Net cash from investing activities |
|
(29,590 |
) |
|
|
(13,604 |
) |
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Repayments on Term Loan Facilities |
|
(6,250 |
) |
|
|
(300,000 |
) |
Borrowings on Accounts Receivable Securitization Facility |
|
290,000 |
|
|
|
— |
|
Repayments on Accounts Receivable Securitization Facility |
|
(154,500 |
) |
|
|
— |
|
Borrowings on Revolving Loan Facilities |
|
129,000 |
|
|
|
— |
|
Repayments on Revolving Loan Facilities |
|
(109,000 |
) |
|
|
— |
|
Borrowings on notes payable |
|
21,454 |
|
|
|
21,106 |
|
Repayments on notes payable |
|
(21,713 |
) |
|
|
(20,276 |
) |
Share repurchases |
|
(25,018 |
) |
|
|
— |
|
Cash dividends paid |
|
(52,297 |
) |
|
|
(52,351 |
) |
Other |
|
(4,109 |
) |
|
|
(2,902 |
) |
Net cash from financing activities |
|
67,567 |
|
|
|
(354,423 |
) |
Effect of changes in foreign exchange rates on cash |
|
1,793 |
|
|
|
(17,662 |
) |
Change in cash, cash equivalents and restricted cash |
|
(191,419 |
) |
|
|
(368,743 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
560,629 |
|
|
|
910,603 |
|
Cash, cash equivalents and restricted cash at end of period |
|
369,210 |
|
|
|
541,860 |
|
Less restricted cash at end of period |
|
— |
|
|
|
1,153 |
|
Cash and cash equivalents at end of period |
$ |
369,210 |
|
|
$ |
540,707 |
|
|
|
|
|
||||
Balances included in the Condensed Consolidated Balance Sheets: |
|
|
|
||||
Cash and cash equivalents |
$ |
369,210 |
|
|
$ |
530,403 |
|
Cash and cash equivalents included in current assets held for sale |
|
— |
|
|
|
10,304 |
|
Cash and cash equivalents at end of period |
$ |
369,210 |
|
|
$ |
540,707 |
|
1 |
The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities in the periods prior the sale of the European Innerwear business on March 5, 2022. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
TABLE 6-A |
|||||||||||||||||||||||||||
Hanesbrands INC. |
|||||||||||||||||||||||||||
Supplemental Financial Information |
|||||||||||||||||||||||||||
Reconciliation of Select GAAP Measures to Non-GAAP Measures |
|||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
Quarter Ended April 2, 2022 |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling,
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Income
|
|
Diluted
|
||||||||||||||
As reported |
$ |
584,178 |
|
|
$ |
(413,666 |
) |
|
$ |
170,512 |
|
|
$ |
137,562 |
|
|
$ |
(23,385 |
) |
|
$ |
114,177 |
|
|
$ |
0.32 |
|
As a percentage of net sales |
|
37.1 |
% |
|
|
26.2 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Full Potential Plan: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services |
|
— |
|
|
|
7,908 |
|
|
|
7,908 |
|
|
|
7,908 |
|
|
|
— |
|
|
|
7,908 |
|
|
|
0.02 |
|
Gain on classification of assets held for sale |
|
— |
|
|
|
(6,528 |
) |
|
|
(6,528 |
) |
|
|
(6,528 |
) |
|
|
— |
|
|
|
(6,528 |
) |
|
|
(0.02 |
) |
Operating model |
|
(265 |
) |
|
|
(1,654 |
) |
|
|
(1,919 |
) |
|
|
(1,919 |
) |
|
|
— |
|
|
|
(1,919 |
) |
|
|
(0.01 |
) |
Supply chain segmentation |
|
1,020 |
|
|
|
— |
|
|
|
1,020 |
|
|
|
1,020 |
|
|
|
— |
|
|
|
1,020 |
|
|
|
0.00 |
|
Technology |
|
— |
|
|
|
4,459 |
|
|
|
4,459 |
|
|
|
4,459 |
|
|
|
— |
|
|
|
4,459 |
|
|
|
0.01 |
|
Other |
|
(256 |
) |
|
|
118 |
|
|
|
(138 |
) |
|
|
(138 |
) |
|
|
— |
|
|
|
(138 |
) |
|
|
0.00 |
|
Tax effect on actions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(816 |
) |
|
|
(816 |
) |
|
|
0.00 |
|
Total restructuring and other action-related charges |
|
499 |
|
|
|
4,303 |
|
|
|
4,802 |
|
|
|
4,802 |
|
|
|
(816 |
) |
|
|
3,986 |
|
|
|
0.01 |
|
As adjusted |
$ |
584,677 |
|
|
$ |
(409,363 |
) |
|
$ |
175,314 |
|
|
$ |
142,364 |
|
|
$ |
(24,201 |
) |
|
$ |
118,163 |
|
|
$ |
0.34 |
|
As a percentage of net sales |
|
37.1 |
% |
|
|
26.0 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
||||||||
TABLE 6-B |
|||||||||||||||||||||||||||
|
Quarter Ended April 3, 2021 |
||||||||||||||||||||||||||
|
Gross Profit |
|
Selling,
|
|
Operating
|
|
Income
|
|
Income Tax
|
|
Income
|
|
Diluted
|
||||||||||||||
As reported |
$ |
602,681 |
|
|
$ |
(412,559 |
) |
|
$ |
190,122 |
|
|
$ |
143,101 |
|
|
$ |
(14,697 |
) |
|
$ |
128,404 |
|
|
$ |
0.37 |
|
As a percentage of net sales |
|
40.0 |
% |
|
|
27.4 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Restructuring and other action-related charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Full Potential Plan: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services |
|
— |
|
|
|
11,706 |
|
|
|
11,706 |
|
|
|
11,706 |
|
|
|
— |
|
|
|
11,706 |
|
|
|
0.03 |
|
Impairment of intangible assets |
|
— |
|
|
|
7,302 |
|
|
|
7,302 |
|
|
|
7,302 |
|
|
|
— |
|
|
|
7,302 |
|
|
|
0.02 |
|
Other |
|
2,807 |
|
|
|
(2,422 |
) |
|
|
385 |
|
|
|
385 |
|
|
|
— |
|
|
|
385 |
|
|
|
0.00 |
|
Discrete tax benefits |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,295 |
) |
|
|
(7,295 |
) |
|
|
(0.02 |
) |
Tax effect on actions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,007 |
) |
|
|
(4,007 |
) |
|
|
(0.01 |
) |
Total restructuring and other action-related charges |
|
2,807 |
|
|
|
16,586 |
|
|
|
19,393 |
|
|
|
19,393 |
|
|
|
(11,302 |
) |
|
|
8,091 |
|
|
|
0.02 |
|
As adjusted |
$ |
605,488 |
|
|
$ |
(395,973 |
) |
|
$ |
209,515 |
|
|
$ |
162,494 |
|
|
$ |
(25,999 |
) |
|
$ |
136,495 |
|
|
$ |
0.39 |
|
As a percentage of net sales |
|
40.2 |
% |
|
|
26.3 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
1 |
Amounts may not be additive due to rounding. |
Including the unfavorable foreign currency impact of $14.3 million, global Champion sales excluding C9 Champion increased approximately 3% in the first quarter of 2022 compared to the first quarter of 2021. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 6% in the first quarter of 2022 compared to the first quarter of 2021. |
TABLE 6-C |
|||||||
Hanesbrands INC. |
|||||||
Supplemental Financial Information |
|||||||
Reconciliation of Select GAAP Measures to Non-GAAP Measures |
|||||||
(in thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
Last Twelve Months |
||||||
|
April 2,
|
|
April 3,
|
||||
EBITDA1: |
|
|
|
||||
Income from continuing operations |
$ |
506,741 |
|
|
$ |
90,999 |
|
Interest expense, net |
|
150,570 |
|
|
|
172,671 |
|
Income tax expense (benefit) |
|
68,795 |
|
|
|
(95,950 |
) |
Depreciation and amortization |
|
107,143 |
|
|
|
116,816 |
|
Total EBITDA |
|
833,249 |
|
|
|
284,536 |
|
Total restructuring and other action-related charges (excluding tax effect on actions) |
|
162,818 |
|
|
|
729,265 |
|
Stock compensation expense |
|
23,454 |
|
|
|
12,504 |
|
Total EBITDA, as adjusted |
$ |
1,019,521 |
|
|
$ |
1,026,305 |
|
|
|
|
|
||||
Net debt: |
|
|
|
||||
Debt (current and long-term debt and Accounts Receivable Securitization Facility) |
$ |
3,485,542 |
|
|
$ |
3,684,006 |
|
(Less) Cash and cash equivalents |
|
(369,210 |
) |
|
|
(530,403 |
) |
Net debt |
$ |
3,116,332 |
|
|
$ |
3,153,603 |
|
|
|
|
|
||||
Net debt/EBITDA, as adjusted |
|
3.1 |
|
|
|
3.1 |
|
1 |
Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. |
|
Quarters Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Free cash flow1: |
|
|
|
||||
Net cash from operating activities |
$ |
(231,189 |
) |
|
$ |
16,946 |
|
Capital expenditures |
|
(19,337 |
) |
|
|
(17,804 |
) |
Free cash flow |
$ |
(250,526 |
) |
|
$ |
(858 |
) |
1 |
Free cash flow includes the results from continuing and discontinued operations. |
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 |
|
July 2,
|
|
December 31,
|
Operating profit outlook, as calculated under GAAP |
$155,000 to $175,000 |
|
$780,000 to $850,000 |
Restructuring and other action-related charges |
$15,000 |
|
$60,000 |
Operating profit outlook, as adjusted |
$170,000 to $190,000 |
|
$840,000 to $910,000 |
|
|
|
|
Diluted earnings per share from continuing operations, as calculated under GAAP1 |
$0.28 to $0.32 |
|
$1.50 to $1.67 |
Restructuring and other action-related charges |
$0.04 |
|
$0.14 |
Diluted earnings per share from continuing operations, as adjusted |
$0.32 to $0.36 |
|
$1.64 to $1.81 |
1 |
The company expects approximately 351 million diluted weighted average shares outstanding for the quarter ended July 2, 2022 and the year ended December 31, 2022. |