Hanesbrands (NYSE:HBI), a leading apparel company, reported fourth-quarter 2024 earnings that fell short of analyst revenue expectations. While sales increased 1.1% year-over-year to $888.5 million, the figure missed the consensus estimate of $899.4 million. Furthermore, the company’s revenue guidance for the next quarter of $750 million came in 4.1% below analyst projections. Despite the revenue miss, Hanesbrands reported non-GAAP earnings per share (EPS) of $0.17, surpassing analyst estimates by 19.5%.
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Hanesbrands Q4 2024 Performance Highlights
Key financial metrics from Hanesbrands’ Q4 2024 earnings report include:
- Revenue: $888.5 million, a 1.1% year-over-year increase but a 1.2% miss compared to analyst estimates of $899.4 million.
- Adjusted EPS: $0.17, exceeding analyst consensus of $0.14 by 19.5%.
- FY2025 Revenue Guidance: $3.50 billion (midpoint), a 3.8% miss against analyst expectations and implying a -2.9% decline in growth compared to -4.3% in FY2024.
- FY2025 Adjusted EPS Guidance: $0.53 (midpoint), surpassing analyst estimates by 2.2%.
- Operating Margin: An improvement to 13.5% from 11.1% in the same quarter of the previous year.
- Free Cash Flow Margin: A decrease to 6.9% from 30.3% in the corresponding quarter last year.
- Constant Currency Revenue: A 5.6% year-over-year increase, contrasting with a -11.6% decline in the same period last year.
- Market Capitalization: $2.70 billion.
CEO Steve Bratspies expressed confidence in the company’s transformation strategy, stating, “We delivered a strong quarter and full-year with results across all key metrics exceeding our expectations as the benefits of our transformation strategy are clearly working.”
Company Overview: Hanesbrands – An American Apparel Icon
Founded in 1901, Hanesbrands (NYSE: HBI) is a well-established American clothing company recognized for its diverse range of essential apparel products, including innerwear and activewear. The company holds a significant position in the market, offering a wide variety of everyday clothing items.
The Evolving Landscape of Apparel and Accessories
The apparel and accessories industry is undergoing a significant transformation driven by social media, e-commerce, and rapidly changing consumer preferences. Companies must adapt to omnichannel strategies and evolving trends to remain competitive. While some companies are successfully navigating this shift, others risk falling behind.
Analyzing Hanesbrands’ Sales Growth
Sustained long-term sales performance is a critical indicator of a company’s overall quality and potential for future success. Hanesbrands has experienced a challenging period, with a 9.7% annual decline in sales over the past five years.
This underperformance raises concerns about the company’s long-term viability. Although short-term fluctuations can occur, consistent long-term growth is a hallmark of high-performing businesses.
Recent Revenue Trends at Hanesbrands
While long-term growth is paramount, recent trends can offer valuable insights, particularly in the consumer discretionary sector. Hanesbrands’ annualized revenue decline of 5% over the last two years suggests a continued contraction in demand. Even considering the dynamic nature of consumer preferences, this trend highlights ongoing challenges for the company.
