Q2 2024 HanesBrands Inc Earnings Call Transcript
Key Points
- Hanesbrands Inc (HBI) delivered strong second quarter results with better-than-expected performance from its Innerwear business in the US.
- The company successfully completed the sale of its Global Champion business, using the $900 million net proceeds to pay down debt.
- Hanesbrands Inc (HBI) reported significant year-over-year improvement in both gross and operating margins, with gross margin increasing by 525 basis points to 39.8%.
- The company gained 40 basis points of market share in the Innerwear segment, driven by increased marketing investments and product innovation.
- Hanesbrands Inc (HBI) is confident in generating strong double-digit EPS growth for the next several years, supported by continued margin improvement and debt reduction.
- The reclassification of the Global Champion business and US outlet store business to discontinued operations makes current results not directly comparable to previous guidance.
- The company continues to face a challenging environment with consumer spending headwinds and tight inventory management by select retailers.
- Sales in the US Innerwear segment decreased by 1% compared to last year, reflecting ongoing market challenges.
- The Australian business, which represents roughly two-thirds of the international segment, decreased at a mid-single-digit rate due to high interest rates impacting consumer spending.
- Despite the strategic actions taken, the overall apparel market remains volatile, and the timing of a full recovery in consumer demand is uncertain.
Good day and thank you for standing by, and welcome to the HanesBrands second quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to T.C. Robillard, Vice President of Investor Relations. Please go ahead.
Good day, everyone, and welcome to the HanesBrands quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress after the second quarter of 2024. Hopefully, everyone has had a chance to review the news release we issued earlier today.
Beginning with second quarter results, we have reclassified our Global Champion business in our US outlet store business to discontinued operations, and we have realigned our segment reporting. This was not contemplated in our initial second quarter guidance back on May 9.
Therefore, second quarter results from continuing operations are not directly comparable to
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