Hanesbrands Q3 Profit Hit by Costs, But Sales Rise 17%

In Industry News, Uncategorized, What's New by Jeff PrineLeave a Comment

hanesdotWinston-Salem, NC—Hanesbrands Inc. reported today that its third quarter earnings were hit by acquisition related costs that offset sales increases from its new Maidenform and DB Apparel business.

For the quarter ended Sept. 27, Hanesbrands reported a profit of $118.9 million, or $1.16 a share, down from $125.3 million, or $1.23 a share, a year earlier. Excluding acquisition-related charges and other items, adjusted earnings rose to $1.73 from $1.23.

Net revenue increased 17% to $1.4 billion. Maidenform contributed sales of $115 million and DBApparel contributed revenue of $81 million. Excluding acquisitions and currency impacts, revenue rose 1%.

Forecast Ahead of Estimates

Analysts had predicted earnings of $1.68 a share on revenues of $1.41 billion for the quarter

This results mark Hanesbrands third consecutive quarter of double-digit growth in net sales, adjusted operating profit and adjusted earnings per share. Third-quarter results were aided by “acquisition-related sales and profit contributions, modest base sales growth led by new products, and significant efficiency gains from global supply chain operations,” the company said.

Looking ahead, Hanesbrands again raised its 2014 full year earnings estimate: to $5.55 to $5.65 from its previously increased estimate for per-share profit of $5.40 to $5.60. Sales are still estimated in the range of $5.35 billion to $5.38 billion. Analysts expect earnings of $5.58 a share on sales of $5.36 billion.

For the fourth quarter, the company forecast adjusted earnings of $1.35 to $1.45 a share on sales of $1.55 billion to $1.57 billion. Analysts expect earnings of $1.40 a share on sales of $1.55 billion.