HanesBrands Q2 Loss Widens, Issues Q3 View, Updates FY24 Forecast; Stock Up In Pre-market

(RTTNews) - Clothing company Hanesbrands Inc. (HBI), while reporting wider loss and weak revenues in its second quarter, on Thursday issued third-quarter outlook and updated fiscal 2024 forecast to reflect certain discontinued operations.

In pre-market activity on the NYSE, Hanesbrands shares were gaining around 5.8 percent to trade at $5.50.

For third quarter, the company currently expects earnings per share from continuing operations of around $0.03 to $0.08 and adjusted earnings per share from continuing operations of around $0.09 to $0.14.

Net sales from continuing operations are projected to be around $920 million to $950 million.

Analysts on average expect the company to report earnings of $0.23 per share on sales of $1.49 billion for the quarter, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

At the midpoint, net sales represents an approximate 3 percent decrease from last year on a reported basis and an approximate 1 percent decrease on an organic constant currency basis.

Further, for fiscal 2024, the company currently expects loss per share from continuing operations of around $0.35 to $0.41, and adjusted earnings per share from continuing operations of around $0.31 to $0.37.

Net sales from continuing operations would be approximately $3.59 billion to $3.63 billion. At the midpoint, sales represent an approximate 4 percent decrease as compared to prior year on a reported basis and an approximate 2 percent decrease on an organic constant currency basis.

The company noted that current 2024 guidance metrics, which are based on continuing operations and reflect the global Champion and U.S. outlet store businesses being reported in discontinued operations, are not comparable to previous outlook given on May 9.

In its second quarter, net loss was $298.38 million, wider than last year's $22.46 million. Loss per share was $0.85, compared to loss of $0.06 in the same period last year.

Adjusted earnings were $52.71 million or $0.15 per share for the period.

Revenue declined to $995.393 million from $1.035 billion in the same period last year.

The analysts expected earnings of $0.10 per share on sales of $1.36 billion for the quarter.

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