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HanesBrands Down after Lowering Outlook

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Shares of HanesBrands, Inc. (NYSE:HBI) are plunging over 4% in morning trade after the company reported fourth-quarter profits and revenues well below analyst estimates. The clothing company said it earned $41 million, or 41 cents per share, for the period that ended Dec. 31. That’s up from $28.1 million, or 29 cents per share, earned in the prior fourth quarter. This was below analyst consensus forecasts of 51 cents per share.

Net sales in the quarter decreased slightly to $1.15 billion falling below the $1.24 billion consensus estimate. For its full fiscal year HanesBrands earned $266.7 million, or $2.69 per share, versus $211.3 million, or $2.16 per share in the prior. Revenue increased more than 7 percent to $4.64 billion from $4.33 billion in the prior fiscal year.

The company also issued a profit warning for the full year. The company also said it expects to earn $2.50 to $2.60 per share for the year. It anticipates revenue will increase 2 to 4 percent, which calculates to a range of roughly $4.73 billion to $4.83 billion. This is significantly below the analyst consensus forecast that called for earnings of $2.99 per share on revenue of $5 billion for the year.


The company said the quarter’s results were hurt by an “unexpected and substantial” slowing of orders in December as retailers tried to lower their inventory levels.

“We achieved record earnings and sales in 2011 with strong performance in several of our categories, including underwear and socks, although we were disappointed with late fourth-quarter softness that yielded results below our expectations,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “For 2012, we expect to get through the challenges of the inflation overhang and Outerwear wholesale issues while we focus on core growth and delivering strong free cash flow that will be used to reduce long-term debt.”

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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