TLDR
- Hanesbrands (HBI) stock rose 3.68% to $5.07 after a strong Q1 earnings beat.
- Revenue hit $760.1 million, up 2.1% year on year and in line with estimates.
- Adjusted EPS of $0.18 smashed analyst forecasts of $0.02.
- Management reaffirmed full-year revenue and EPS guidance.
- The earnings date was scheduled for May 8, 2025.
Hanesbrands Inc. (NYSE: HBI) stock climbed 3.68% to $5.07 as of 10:24 AM EDT on May 8 after reporting better-than-expected first-quarter results.
The clothing giant’s earnings call revealed that Q1 revenue reached $760.1 million, marking 2.1j4u% year-on-year growth and aligning with analyst projections. More impressively, non-GAAP earnings per share (EPS) surged to $0.18, far surpassing Wall Street’s $0.02 estimate.
Earnings and Guidance
CEO Steve Bratspies credited the solid quarter to the company’s transformation initiatives and growth strategy, which drove stronger operating profit and EPS. Management maintained its full-year revenue guidance at $3.5 billion and reaffirmed its adjusted EPS target of $0.53.
$HBI HanesBrands Inc. Announces First-Quarter 2025 Resultshttps://t.co/n9tmxHOKM4
— Lycanbull (@Lycanbull) May 8, 2025
However, the outlook for the next quarter remains modest, with projected revenue of $970 million coming in slightly below analyst expectations by 0.6%. Despite the short-term sales headwinds, investors appeared encouraged by the robust profit performance.
Sales Trends Show Ongoing Challenges
Despite the Q1 beat, Hanesbrands has struggled with long-term sales declines. Over the past five years, revenue has fallen at an annual rate of 11.8%. Constant currency revenue declined by an average of 4.4% over the past two years. This quarter’s 2.1% revenue growth offers a positive sign, but management is only guiding for flat sales in the coming months.
Wall Street analysts expect revenue to stay flat over the next year, suggesting that while the company’s turnaround efforts are yielding earnings gains, sustained top-line growth remains elusive.
Profitability and EPS Outlook
Hanesbrands reported stable operating margins, reflecting a steady cost structure. Its EPS performance in Q1 was a bright spot, reversing last year’s negative $0.02 EPS to a solid $0.18. However, analysts project full-year EPS of $0.63, which would mark a 17.1% year-on-year decline.
While the stock jumped 8.4% immediately after the earnings release, concerns about ongoing revenue stagnation and shrinking annual EPS may temper enthusiasm among long-term investors.
