Winston-Salem, NC—Although HanesBrands reported Wednesday afternoon that its fourth quarter profit was down some 60%–weighed down by acquisition costs—the apparel and hosiery company still beat expectations. HanesBrands also increased its earnings forecast.
For the quarter ended Dec. 28, HanesBrands posted net income of $32.3 million, or 32 cents a share, compared with $80.4 million, or 81 cents a share, last year. Excluding the $80 million in one-time acquisition charges related to its $581 million purchase of Maidenform, adjusted earnings were 98 cents a share. That was ahead of analysts’ average estimate for 90 cents a share.
2014 Earnings Forecast Raised
Net sales rose 11.5% to $1.29 billion from $1.15 billion a year ago. Analysts had estimated revenues of $1.26 billion. The Maidenform deal added about $100 million to the total.
For the full year, HanesBrands reported earnings of $330.5 million, or $3.31 a share, compared with 2012 profit of $164.7 million, or $1.67 a share. Revenue rose to $4.63 billion from $4.53 billion.
“We had an outstanding year in 2013 with four consecutive quarters of strong performance. We achieved record results and reached significant milestones, including generating nearly $600 million of cash from operations,” Hanes Chairman/CEO Richard A. Noll said.
“We are raising our 2014 earnings guidance because we are increasingly confident that the momentum of our Innovate-to-Elevate strategy will deliver even better results. The combination of our brand power, low-cost supply chain and innovation platforms is generating value and growth opportunities.”
For its 2014 fiscal year, HanesBrands forecast earnings of $4.60 to $4.80 a share, above the “low $4-range,” suggested by Noll last fall. Sales are expected to hit nearly $5.1 billion. Analysts’ consensus expects $4.46 a share.
In other news, the company’s board of directors said Tuesday it had raised the quarterly cash dividend by 10 cents to 30 cents a share. The dividend is payable March 11 to shareholders registered on Feb. 18.