Hanesbrands Profit In Line, Sales Misses; Cuts FY Sales Guidance; Stock Down 9%

(RTTNews) - Apparel company Hanesbrands Inc (HBI) on Thursday reported second-quarter net earnings of $94.9 million or $0.23 per share compared with $154.6 million or $0.38 per share last year.

Excluding items, adjusted earnings for the quarter were $0.50 per share compared with $0.43 per share a year ago.

Revenues for the quarter were up 13.4% at $1.52 billion compared with $1.34 billion in the prior year, led by growth in activewear and international segments.

Analysts polled by Thomson Reuters estimated earnings of $0.50 per share on revenues of $1.56 billion for the quarter. Analysts' estimates typically exclude special items.

Gross margin fell to 37.3% from 37.6% a year ago, and operating margin slumped to 9.1% from 15.4%.

For the full year 2015, Hanes now expects sales of slightly less than $5.9 billion, from prior guidance of $5.90 billion to $5.95 billion. It still expects adjusted earnings of $1.61 to $1.66 per share.

Analysts expect sales of $5.96 billion and earnings of $1.65 per share in 2015.

HBI closed Thursday at $34.14, up $0.40 or 1.19%, on the NYSE. In after hours, the stock dropped $2.92 or 8.55% at $31.22.