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- Net Sales of $892 million decreased 1% compared to prior year.
- Operating Profit increased 14% over prior year to $108 million and Operating Margin increased 160 basis points to 12.1%. Adjusted Operating Profit increased 3% to $116 million and Adjusted Operating Margin increased 45 basis points to 13.0%.
- Earnings per share (EPS) increased 986% over prior year to $0.76, inclusive of a $0.64 per share discrete tax benefit. Adjusted EPS increased 25% to $0.15.
- Balance sheet further strengthened as leverage decreased to 3.3 times net debt-to-adjusted EBITDA, an improvement of 1.0 times compared to prior year.
- As previously announced on August 13, 2025, HanesBrands and Gildan entered into a definitive merger agreement under which Gildan will acquire HanesBrands. In light of the pending transaction with Gildan, HanesBrands will not be hosting a conference call to discuss its third-quarter 2025 results.
- While the Company will not be providing guidance going forward due to the pending transaction, it believes it’s on track to meet its previously provided full-year 2025 EPS outlook.
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WINSTON-SALEM, N.C. — HanesBrands Inc. (NYSE: HBI), a global leader in everyday iconic apparel, today announced results for the third-quarter 2025.
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“Our top-line results for the quarter reflect an unanticipated late quarter shift in replenishment orders at one of our large U.S. retail partners; however, we saw underlying fundamentals of our business continue to improve in the quarter. Our inventory position at retail is strong. We’re encouraged by our unit point-of-sale trends, which sequentially improved each month during the quarter. We are also pleased with our strong back-to-school season as the Hanes brand continued to gain market share,” said Steve Bratspies, CEO. “In addition, the continued execution of our cost savings initiatives drove operating profit growth and operating margin expansion, which along with lower interest expense, combined to generate a 25% increase in adjusted earnings per share in the quarter. Looking forward, our team remains focused on driving the business and the successful completion of the transaction with Gildan.”
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Third-Quarter 2025 Results
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Net Sales
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from continuing operations were $892 million.
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- Net Sales decreased 1.0% compared to prior year.
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- On an organic constant currency basis, Net Sales decreased 4.9% compared to prior year (Table 2-B).
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Gross Profit and Gross Margin
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decreased compared to prior year as unfavorable business and customer mix more than offset lower input costs and the benefits from cost savings and productivity initiatives. With respect to the unfavorable business mix, greater-than-expected transition services revenue, which is reported in the Other segment, generated a nearly 160 basis point year-over-year headwind to margins in the quarter.
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- Gross Profit decreased 3% to $363 million and Gross Margin decreased 70 basis points to 40.8% as compared to prior year.
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- Adjusted Gross Profit decreased 3% to $364 million and Adjusted Gross Margin decreased 80 basis points to 40.8% as compared to prior year.
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- Adjusted Gross Profit and Adjusted Gross Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).
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Operating Profit and Operating Margin
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increased over prior year driven by lower SG&A expenses. SG&A expenses decreased compared to prior year both on an absolute basis and as a percent of net sales due to the benefits from cost savings initiatives and disciplined expense management.
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- Operating Profit increased 14% to $108 million and Operating Margin increased 160 basis points to 12.1% as compared to prior year.
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- Adjusted Operating Profit increased 3% to $116 million and Adjusted Operating Margin increased 45 basis points to 13.0% as compared to prior year.
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- Adjusted Operating Profit and Adjusted Operating Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).
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Interest Expense and Other Expenses
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- Interest and Other Expenses decreased $3 million over prior year to $55 million driven primarily by lower debt balances.
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Earnings Per Share
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- Income from continuing operations totaled $272 million, or $0.76 per diluted share, in the third quarter of 2025, inclusive of a $0.64 per share discrete tax benefit primarily related to the release of a valuation allowance established in 2022 for certain U.S. deferred tax assets. This compares to income from continuing operations of $25 million, or $0.07 per diluted share, in third-quarter 2024.
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- Adjusted Income from continuing operations totaled $52 million, or $0.15 per diluted share, in the third quarter of 2025. This compares to adjusted income from continuing operations of $44 million, or $0.12 per diluted share, last year (Table 6-A).
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See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include restructuring and other action-related charges.
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Third-Quarter 2025 Business Segment Summary
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U.S.
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net sales decreased 4.5% as compared to prior year driven by unanticipated shifts in ordering patterns at one of the Company’s large retail partners, which impacted late quarter replenishment orders. Despite the near-term sales challenge, the Company saw unit point-of-sale trends sequentially improve each month during the quarter as it performed well during the key back-to-school period. The Company continued to focus on its core growth fundamentals including new businesses, innovation, brand investments, and incremental programming opportunities, which generated year-over-year market share gains for the
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Hanes
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brand during the quarter.
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Operating margin of 22.2% increased 20 basis points over prior year driven by lower input costs and the benefits from cost savings and productivity initiatives.
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International
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net sales decreased 8% on a reported basis, which included a $4 million headwind from unfavorable foreign exchange rates, and 6% on a constant currency basis as compared to prior year. By region: constant currency net sales increased in Japan driven by strength in the
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Hanes
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brand; decreased in the Americas as a result of the challenging macroeconomic environment; and decreased in Australia as strong growth in the
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Bonds
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brand across all channels was more than offset by continued headwinds in the intimate apparel market.
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Operating margin of 10.2% decreased 230 basis points compared to prior year driven primarily by lower sales volume and increased brand investment, which more than offset the benefits from cost savings initiatives and lower input costs.
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Balance Sheet and Cash Flow
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- Based on the calculation as defined in the Company’s senior secured credit facility, the Leverage Ratio at the end of third-quarter 2025 was 3.3 times on a net debt-to-adjusted EBITDA basis, which was below prior year’s 4.3 times (Table 6-B).
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- Inventory at the end of third-quarter 2025 of $991 million increased 10%, or $94 million, year-over-year, with the vast majority of the increase driven by the impact from tariffs. Year-to-date, the Company further reduced its SKU count by nearly 5% driven by its inventory management capabilities, including SKU discipline and lifecycle management.
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- Cash Flow from Operations was $28 million in third-quarter 2025, which compared to $92 million last year. Free Cash Flow for the quarter was $22 million as compared to $88 million last year.
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Note on Adjusted Measures and Reconciliation to GAAP Measures
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To supplement financial results prepared in accordance with generally accepted accounting principles, the Company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted EPS from continuing operations, adjusted income (loss) from continuing operations, adjusted operating profit (and margin), adjusted gross profit (and margin), EBITDA, adjusted EBITDA, organic constant currency net sales, net debt, leverage ratio and free cash flow.
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Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations excluding actions and the tax effect on actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted gross profit is defined as gross profit excluding actions.
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Charges for actions taken in 2025 and 2024, as applicable, include supply chain restructuring and consolidation, headcount actions and related severance charges, professional services, gain/loss on sale of business and classification of assets held for sale, loss on extinguishment of debt, corporate asset impairment charges, other actions, which include transaction fees and transition planning charges related to the pending Gildan Activewear Inc. (“Gildan”) transactions, discrete tax benefits and the tax effects thereof.
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While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
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HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of our supply chain restructuring and consolidation and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the Company’s ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken.
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The Company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as net income (loss) before the impacts of discontinued operations, interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding (x) restructuring charges related to our supply chain restructuring and consolidation, and other action-related charges described in more detail in Table 6-A and (y) certain other losses, charges and expenses as defined in the Consolidated Net Total Leverage Ratio under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025 (the “Credit Agreement”) described in more detail in Table 6-B. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.
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Net debt is defined as the total of current debt, long-term debt, and borrowings under the accounts receivable securitization facility (excluding long-term debt issuance costs and debt discount and borrowings of unrestricted subsidiaries under the accounts receivable securitization facility) less (x) other debt and cash adjustments and (y) cash and cash equivalents. Leverage ratio is the ratio of net debt to adjusted EBITDA as it is defined in our Credit Agreement. The Company defines free cash flow as net cash from operating activities less capital expenditures. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. The Company defines organic net sales as net sales excluding the ‘other’ segment and excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date.
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HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company’s reported operating results, HanesBrands also presents constant-currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation. To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). HanesBrands believes constant currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the Company’s businesses. The Company defines organic constant currency sales as net sales excluding the ‘other’ segment and also excluding the impact of translating foreign currencies into U.S. dollars as discussed above.
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Non‐GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies.
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Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.
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Cautionary Statement Concerning Forward-Looking Statements
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This news release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “could,” “will,” “expect,” “outlook,” “potential,” “project,” “estimate,” “future,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those implied or expressed by such statements. These risks and uncertainties include, but are not limited to, trends associated with our business; our ability to successfully implement our strategic plans, including our supply chain restructuring and consolidation and other cost savings initiatives; the rapidly changing retail environment and the level of consumer demand; the effects of any geopolitical conflicts (including the ongoing Russia-Ukraine conflict and Middle East conflicts) or public health emergencies or severe global health crises, including effects on consumer spending, global supply chains, critical supply routes and the financial markets; our ability to deleverage on the anticipated time frame or at all; any inadequacy, interruption, integration failure or security failure with respect to our information technology; future intangible assets or goodwill impairment due to changes in our business, market condition, or other factors; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations, including the imposition of or changes in duties, taxes, tariffs and other charges impacting our products or supply chain, or the threat thereof; our ability to effectively manage our complex international tax structure; our future financial performance; the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Gildan providing for the acquisition of the Company by Gildan pursuant to a series of transactions (the “Transactions”); the possibility that the Transactions do not close when expected, or at all, because approval of the Company’s stockholders or regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the risk that the combined company will not realize expected benefits or synergies from the Transactions, or that such benefits may take longer to realize or be more costly to achieve than expected; disruption to the Company’s business as a result of the announcement and pendency of the Transactions; the costs associated with the anticipated length of time of the pendency of the Transactions, including the restrictions contained in the definitive merger agreement on the ability of the Company to operate its business outside the ordinary course during the pendency of the Transactions; the diversion of the Company’s management’s attention and time from ongoing business operations and opportunities on merger‑related matters; and reputational risk and potential adverse reactions of the Company’s existing and future customers, suppliers and employees, including those resulting from the announcement or completion of the Transactions; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements. Such statements speak only as of the date when made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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About HanesBrands
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HanesBrands (NYSE: HBI) is a socially responsible global leader in everyday iconic apparel with a mission to create a more comfortable world for every body. The company owns a portfolio of some of the world’s most recognized apparel brands including Hanes, the leading basic apparel brand in the U.S.; Bonds, an Australian staple since 1915 that is setting new standards for design and innovation; Maidenform, America’s number one shapewear brand; and Bali, America’s number one national bra brand. HanesBrands owns the majority of its worldwide manufacturing facilities and has built a strong reputation for workplace quality, ethical business practices, and reducing environmental impact.
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TABLE 1
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HANESBRANDS INC.
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Condensed Consolidated Statements of Operations
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(in thousands, except per share data)
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(Unaudited)
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Quarters Ended | Nine Months Ended | ||||||||||||||||||||
September 27, | September 28, | % Change | September 27, | September 28, | |||||||||||||||||
Net sales | $ | 891,683 | $ | 900,367 | (1.0 | )% | $ | 2,643,156 | $ | 2,618,969 | 0.9 | % | |||||||||
Cost of sales | 528,233 | 526,890 | 1,551,081 | 1,649,716 | |||||||||||||||||
Gross profit | 363,450 | 373,477 | (2.7 | )% | 1,092,075 | 969,253 | 12.7 | % | |||||||||||||
As a % of net sales | 40.8 | % | 41.5 | % | 41.3 | % | 37.0 | % | |||||||||||||
Selling, general and administrative expenses | 255,922 | 279,440 | (8.4 | )% | 749,981 | 903,005 | (16.9 | )% | |||||||||||||
As a % of net sales | 28.7 | % | 31.0 | % | 28.4 | % | 34.5 | % | |||||||||||||
Operating profit | 107,528 | 94,037 | 14.3 | % | 342,094 | 66,248 | 416.4 | % | |||||||||||||
As a % of net sales | 12.1 | % | 10.4 | % | 12.9 | % | 2.5 | % | |||||||||||||
Other expenses | 8,053 | 9,343 | 34,348 | 29,021 | |||||||||||||||||
Interest expense, net | 47,116 | 48,542 | 137,971 | 149,404 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | 52,359 | 36,152 | 169,775 | (112,177 | ) | ||||||||||||||||
Income tax expense (benefit) | (219,548 | ) | 11,430 | (201,771 | ) | 31,486 | |||||||||||||||
Income (loss) from continuing operations | 271,907 | 24,722 | 371,546 | (143,663 | ) | ||||||||||||||||
Gain (loss) from discontinued operations, net of tax | (1,171 | ) | 5,229 | (28,655 | ) | (163,888 | ) | ||||||||||||||
Net income (loss) | $ | 270,736 | $ | 29,951 | $ | 342,891 | $ | (307,551 | ) | ||||||||||||
Earnings (loss) per share – basic: | |||||||||||||||||||||
Continuing operations | $ | 0.77 | $ | 0.07 | $ | 1.05 | $ | (0.41 | ) | ||||||||||||
Discontinued operations | — | 0.01 | (0.08 | ) | (0.47 | ) | |||||||||||||||
Net income (loss) | $ | 0.76 | $ | 0.09 | $ | 0.97 | $ | (0.87 | ) | ||||||||||||
Earnings (loss) per share – diluted: | |||||||||||||||||||||
Continuing operations | $ | 0.76 | $ | 0.07 | $ | 1.04 | $ | (0.41 | ) | ||||||||||||
Discontinued operations | — | 0.01 | (0.08 | ) | (0.47 | ) | |||||||||||||||
Net income (loss) | $ | 0.76 | $ | 0.08 | $ | 0.96 | $ | (0.87 | ) | ||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 354,183 | 352,107 | 353,914 | 351,891 | |||||||||||||||||
Diluted | 357,079 | 354,839 | 356,776 | 351,891 | |||||||||||||||||
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TABLE 2-A
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HANESBRANDS INC.
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Supplemental Financial Information
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Impact of Foreign Currency
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(in thousands, except per share data)
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(Unaudited)
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The following tables present a reconciliation of reported results on a constant currency basis for the quarter ended September 27, 2025 and a comparison to prior year:
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Quarter Ended September 27, 2025 | ||||||||||||||||||
As Reported | Impact from Foreign Currency1 | Constant Currency | Quarter September 28, 2024 | % Change, As Reported | % Change, Constant Currency | |||||||||||||
As reported under GAAP: | ||||||||||||||||||
Net sales | $ | 891,683 | $ | (4,288 | ) | $ | 895,971 | $ | 900,367 | (1.0 | )% | (0.5 | )% | |||||
Gross profit | 363,450 | (2,370 | ) | 365,820 | 373,477 | (2.7 | ) | (2.1 | ) | |||||||||
Operating profit | 107,528 | (329 | ) | 107,857 | 94,037 | 14.3 | 14.7 | |||||||||||
Diluted earnings per share from continuing operations3 | $ | 0.76 | $ | 0.00 | $ | 0.76 | $ | 0.07 | 985.7 | % | 985.7 | % | ||||||
As adjusted:2 | ||||||||||||||||||
Net sales | $ | 891,683 | $ | (4,288 | ) | $ | 895,971 | $ | 900,367 | (1.0 | )% | (0.5 | )% | |||||
Gross profit | 363,705 | (2,370 | ) | 366,075 | 374,594 | (2.9 | ) | (2.3 | ) | |||||||||
Operating profit | 115,808 | (329 | ) | 116,137 | 112,982 | 2.5 | 2.8 | |||||||||||
Diluted earnings per share from continuing operations3 | $ | 0.15 | $ | 0.00 | $ | 0.15 | $ | 0.12 | 25.0 | % | 25.0 | % | ||||||
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1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. | |
2 | Results for the quarters ended September 27, 2025 and September 28, 2024 reflect adjustments for restructuring and other action-related charges. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Table 6-A. | |
3 | Amounts may not be additive due to rounding. |
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Nine Months Ended September 27, 2025 | |||||||||||||||||||
As Reported | Impact from Foreign Currency1 | Constant Currency | Nine Months September 28, 2024 | % Change, As Reported | % Change, Constant Currency | ||||||||||||||
As reported under GAAP: | |||||||||||||||||||
Net sales | $ | 2,643,156 | $ | (23,515 | ) | $ | 2,666,671 | $ | 2,618,969 | 0.9 | % | 1.8 | % | ||||||
Gross profit | 1,092,075 | (12,782 | ) | 1,104,857 | 969,253 | 12.7 | 14.0 | ||||||||||||
Operating profit | 342,094 | (2,012 | ) | 344,106 | 66,248 | 416.4 | 419.4 | ||||||||||||
Diluted earnings (loss) per share from continuing operations3 | $ | 1.04 | $ | 0.00 | $ | 1.05 | $ | (0.41 | ) | 353.7 | % | 356.1 | % | ||||||
As adjusted:2 | |||||||||||||||||||
Net sales | $ | 2,643,156 | $ | (23,515 | ) | $ | 2,666,671 | $ | 2,618,969 | 0.9 | % | 1.8 | % | ||||||
Gross profit | 1,088,555 | (12,782 | ) | 1,101,337 | 1,059,194 | 2.8 | 4.0 | ||||||||||||
Operating profit | 350,292 | (2,012 | ) | 352,304 | 289,196 | 21.1 | 21.8 | ||||||||||||
Diluted earnings per share from continuing operations3 | $ | 0.45 | $ | 0.00 | $ | 0.46 | $ | 0.23 | 95.7 | % | 100.0 | % | |||||||
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1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. | |
2 | Results for the nine months ended September 27, 2025 and September 28, 2024 reflect adjustments for restructuring and other action-related charges. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Table 6-A. | |
3 | Amounts may not be additive due to rounding. |
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TABLE 2-B
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HANESBRANDS INC.
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Supplemental Financial Information
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Organic Constant Currency
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(in thousands, except per share data)
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(Unaudited)
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The following tables present a reconciliation of reported results on an organic constant currency basis for the quarter and nine months ended September 27, 2025 and a comparison to prior year:
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Quarter Ended September 27, 2025 | Quarter Ended September 28, 2024 | |||||||||||||||||||||||||||
As Reported | Impact from Foreign Currency1 | Less Other Sales2 | Organic Constant Currency | As Reported | Less Other Sales2 | Organic | % Change, As Reported | % Change, Organic Constant Currency | ||||||||||||||||||||
Net sales | $ | 891,683 | $ | (4,288 | ) | $ | 39,781 | $ | 856,190 | $ | 900,367 | $ | (388 | ) | $ | 900,755 | (1.0 | )% | (4.9 | )% | ||||||||
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1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. | |
2 | Other sales in the third quarter of 2025 and 2024 consist of sales from the Company’s supply chain and short term support/transition services agreements for disposed businesses. |
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Nine Months Ended September 27, 2025 | Nine Months Ended September 28, 2024 | ||||||||||||||||||||||||||
As Reported | Impact from Foreign Currency1 | Less Other Sales2 | Organic Constant Currency | As Reported | Less Other Sales2 | Organic | % Change, As Reported | % Change, Organic Constant Currency | |||||||||||||||||||
Net sales | $ | 2,643,156 | $ | (23,515 | ) | $ | 98,054 | $ | 2,568,617 | $ | 2,618,969 | $ | 1,085 | $ | 2,617,884 | 0.9 | % | (1.9 | )% | ||||||||
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1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. | |
2 | Other sales in the nine months ended September 27, 2025 consist of sales from the Company’s supply chain and short term support/transition services agreements for disposed businesses. Other sales in the first nine months of 2024 primarily reflect the U.S. Sheer Hosiery business which was sold on September 29, 2023 as well as short term transition service agreements and support of disposed businesses. |
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TABLE 3
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HANESBRANDS INC.
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Supplemental Financial Information
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By Business Segment
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(in thousands)
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(Unaudited)
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Quarters Ended | Nine Months Ended | ||||||||||||||||||||
September 27, | September 28, | % Change | September 27, | September 28, | % Change | ||||||||||||||||
Segment net sales: | |||||||||||||||||||||
U.S. | $ | 647,531 | $ | 678,345 | (4.5 | )% | $ | 1,919,239 | $ | 1,962,390 | (2.2 | )% | |||||||||
International | 204,371 | 222,410 | (8.1 | ) | 625,863 | 655,494 | (4.5 | ) | |||||||||||||
Total segment net sales | 851,902 | 900,755 | (5.4 | ) | 2,545,102 | 2,617,884 | (2.8 | ) | |||||||||||||
Other net sales | 39,781 | (388 | ) | 10,352.8 | 98,054 | 1,085 | 8,937.2 | ||||||||||||||
Total net sales | $ | 891,683 | $ | 900,367 | (1.0 | )% | $ | 2,643,156 | $ | 2,618,969 | 0.9 | % | |||||||||
Segment operating profit: | |||||||||||||||||||||
U.S. | $ | 143,999 | $ | 149,637 | (3.8 | )% | $ | 439,796 | $ | 406,114 | 8.3 | % | |||||||||
International | 20,799 | 27,704 | (24.9 | ) | 67,545 | 74,742 | (9.6 | ) | |||||||||||||
Total segment operating profit | 164,798 | 177,341 | (7.1 | ) | 507,341 | 480,856 | 5.5 | ||||||||||||||
Other profit (loss) | 1,416 | (1,989 | ) | 171.2 | 8,233 | (1,438 | ) | 672.5 | |||||||||||||
General corporate expenses | (46,737 | ) | (58,449 | ) | (20.0 | ) | (154,337 | ) | (177,353 | ) | (13.0 | ) | |||||||||
Amortization of intangibles | (3,669 | ) | (3,921 | ) | (6.4 | ) | (10,945 | ) | (12,869 | ) | (15.0 | ) | |||||||||
Total operating profit before restructuring and other action-related charges | 115,808 | 112,982 | 2.5 | 350,292 | 289,196 | 21.1 | |||||||||||||||
Restructuring and other action-related charges | (8,280 | ) | (18,945 | ) | (56.3 | ) | (8,198 | ) | (222,948 | ) | (96.3 | ) | |||||||||
Total operating profit | $ | 107,528 | $ | 94,037 | 14.3 | % | $ | 342,094 | $ | 66,248 | 416.4 | % | |||||||||
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Quarters Ended | Nine Months Ended | ||||||||||
September 27, | September 28, | Basis Points Change | September 27, | September 28, | Basis Points Change | ||||||
Segment operating margin: | |||||||||||
U.S. | 22.2 % | 22.1 % | 18 | 22.9 % | 20.7 % | 222 | |||||
International | 10.2 | 12.5 | (228) | 10.8 | 11.4 | (61) | |||||
Total segment operating profit | 19.3 | 19.7 | (34) | 19.9 | 18.4 | 157 | |||||
Other profit (loss) | 3.6 | 512.6 | (50,907) | 8.4 | (132.5) | 14,093 | |||||
General corporate expenses | (5.2) | (6.5) | 125 | (5.8) | (6.8) | 93 | |||||
Amortization of intangibles | (0.4) | (0.4) | 2 | (0.4) | (0.5) | 8 | |||||
Total operating margin before restructuring and other action-related charges | 13.0 | 12.5 | 44 | 13.3 | 11.0 | 221 | |||||
Restructuring and other action-related charges | (0.9) | (2.1) | 118 | (0.3) | (8.5) | 820 | |||||
Total operating margin | 12.1 % | 10.4 % | 161 | 12.9 % | 2.5 % | 1,041 | |||||
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TABLE 4
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HANESBRANDS INC.
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Condensed Consolidated Balance Sheets
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(in thousands)
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(Unaudited)
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September 27, | December 28, | September 28, | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 217,573 | $ | 214,854 | $ | 316,801 | |||||
Trade accounts receivable, net | 454,977 | 376,195 | 463,327 | ||||||||
Inventories | 990,953 | 871,044 | 897,170 | ||||||||
Other current assets | 143,313 | 152,853 | 174,530 | ||||||||
Current assets held for sale | 72,603 | 100,430 | 487,874 | ||||||||
Total current assets | 1,879,419 | 1,715,376 | 2,339,702 | ||||||||
Property, net | 190,417 | 188,259 | 196,627 | ||||||||
Right-of-use assets | 274,251 | 222,759 | 246,477 | ||||||||
Trademarks and other identifiable intangibles, net | 908,108 | 886,264 | 954,945 | ||||||||
Goodwill | 649,598 | 638,370 | 662,134 | ||||||||
Deferred tax assets | 228,182 | 13,591 | 19,740 | ||||||||
Other noncurrent assets | 123,777 | 116,729 | 116,177 | ||||||||
Noncurrent assets held for sale | 23,966 | 59,593 | 925,796 | ||||||||
Total assets | $ | 4,277,718 | $ | 3,840,941 | $ | 5,461,598 | |||||
Liabilities | |||||||||||
Accounts payable | $ | 572,283 | $ | 593,377 | $ | 674,589 | |||||
Accrued liabilities | 397,585 | 452,940 | 529,766 | ||||||||
Lease liabilities | 70,457 | 64,233 | 66,664 | ||||||||
Accounts Receivable Securitization Facility | 109,000 | 95,000 | — | ||||||||
Current portion of long-term debt | 26,250 | — | 59,000 | ||||||||
Current liabilities held for sale | 69,298 | 42,990 | 245,443 | ||||||||
Total current liabilities | 1,244,873 | 1,248,540 | 1,575,462 | ||||||||
Long-term debt | 2,206,666 | 2,186,057 | 3,211,248 | ||||||||
Lease liabilities – noncurrent | 252,999 | 206,124 | 226,900 | ||||||||
Pension and postretirement benefits | 55,388 | 66,171 | 84,158 | ||||||||
Other noncurrent liabilities | 60,819 | 67,452 | 101,294 | ||||||||
Noncurrent liabilities held for sale | 10,536 | 32,587 | 113,192 | ||||||||
Total liabilities | 3,831,281 | 3,806,931 | 5,312,254 | ||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | — | ||||||||
Common stock | 3,538 | 3,525 | 3,518 | ||||||||
Additional paid-in capital | 386,151 | 373,213 | 371,966 | ||||||||
Retained earnings | 577,495 | 234,494 | 247,365 | ||||||||
Accumulated other comprehensive loss | (520,747 | ) | (577,222 | ) | (473,505 | ) | |||||
Total stockholders’ equity | 446,437 | 34,010 | 149,344 | ||||||||
Total liabilities and stockholders’ equity | $ | 4,277,718 | $ | 3,840,941 | $ | 5,461,598 | |||||
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TABLE 5
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HANESBRANDS INC.
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
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(Unaudited)
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Quarters Ended | Nine Months Ended | ||||||||||||||
September 27, 2025(1) | September 28, 2024(1) | September 27, 2025(1) | September 28, 2024(1) | ||||||||||||
Operating Activities: | |||||||||||||||
Net income (loss) | $ | 270,736 | $ | 29,951 | $ | 342,891 | $ | (307,551 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||||||
Depreciation | 7,009 | 18,528 | 20,870 | 58,506 | |||||||||||
Amortization of acquisition intangibles | 1,895 | 1,924 | 5,600 | 10,127 | |||||||||||
Other amortization | 1,774 | 1,997 | 5,345 | 8,195 | |||||||||||
Impairment of long-lived assets and goodwill | — | 142 | — | 76,746 | |||||||||||
Inventory write-down charges, net of recoveries | — | (4,135 | ) | — | 113,528 | ||||||||||
Loss on extinguishment of debt | — | — | 9,293 | — | |||||||||||
Loss (gain) on sale of business and classification of assets held for sale | — | (741 | ) | 6,093 | 50,330 | ||||||||||
Amortization of debt issuance costs and debt discount | 1,442 | 2,543 | 4,996 | 7,648 | |||||||||||
Deferred taxes | (227,216 | ) | (371 | ) | (226,863 | ) | (79 | ) | |||||||
Other | 1,919 | 11,930 | 17,101 | 25,360 | |||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable | 26,136 | (32,119 | ) | (77,211 | ) | (86,606 | ) | ||||||||
Inventories | (42,941 | ) | 97,686 | (102,817 | ) | 55,836 | |||||||||
Accounts payable | (8,924 | ) | (48,972 | ) | 10,170 | 85,057 | |||||||||
Other assets and liabilities | (4,233 | ) | 13,852 | (59,740 | ) | 99,715 | |||||||||
Net cash from operating activities | 27,597 | 92,215 | (44,272 | ) | 196,812 | ||||||||||
Investing Activities: | |||||||||||||||
Capital expenditures | (5,331 | ) | (4,088 | ) | (25,642 | ) | (32,179 | ) | |||||||
Proceeds from sales of assets | 650 | 8,683 | 809 | 12,336 | |||||||||||
Proceeds from (payments for) disposition of businesses | 790 | (12,000 | ) | 27,117 | (12,000 | ) | |||||||||
Net cash from investing activities | (3,891 | ) | (7,405 | ) | 2,284 | (31,843 | ) | ||||||||
Financing Activities: | |||||||||||||||
Borrowings on Term Loan Facilities | — | — | 1,500,000 | — | |||||||||||
Repayments on Term Loan Facilities | (5,250 | ) | — | (708,517 | ) | (29,500 | ) | ||||||||
Borrowings on Accounts Receivable Securitization Facility | 537,000 | 630,500 | 1,200,000 | 1,611,000 | |||||||||||
Repayments on Accounts Receivable Securitization Facility | (504,000 | ) | (630,500 | ) | (1,186,000 | ) | (1,617,000 | ) | |||||||
Borrowings on Revolving Loan Facilities | 926,500 | 4,500 | 3,070,000 | 613,500 | |||||||||||
Repayments on Revolving Loan Facilities | (981,000 | ) | (4,500 | ) | (2,907,500 | ) | (613,500 | ) | |||||||
Repayments on Senior Notes | — | — | (900,000 | ) | — | ||||||||||
Payments to amend and refinance credit facilities | (89 | ) | (33 | ) | (23,370 | ) | (712 | ) | |||||||
Other | 50 | (132 | ) | (4,213 | ) | (3,949 | ) | ||||||||
Net cash from financing activities | (26,789 | ) | (165 | ) | 40,400 | (40,161 | ) | ||||||||
Effect of changes in foreign exchange rates on cash | 313 | 9,565 | 4,307 | (3,398 | ) | ||||||||||
Change in cash and cash equivalents | (2,770 | ) | 94,210 | 2,719 | 121,410 | ||||||||||
Cash and cash equivalents at beginning of period | 220,843 | 232,701 | 215,354 | 205,501 | |||||||||||
Cash and cash equivalents at end of period | $ | 218,073 | $ | 326,911 | $ | 218,073 | $ | 326,911 | |||||||
Balances included in the Condensed Consolidated Balance Sheets: | |||||||||||||||
Cash and cash equivalents | $ | 217,573 | $ | 316,801 | $ | 217,573 | $ | 316,801 | |||||||
Cash and cash equivalents included in current assets held for sale | 500 | 10,110 | 500 | 10,110 | |||||||||||
Cash and cash equivalents at end of period | $ | 218,073 | $ | 326,911 | $ | 218,073 | $ | 326,911 | |||||||
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1 | The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
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TABLE 6-A
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HANESBRANDS INC.
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Supplemental Financial Information
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Reconciliation of Select GAAP Measures to Non-GAAP Measures
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(in thousands, except per share data)
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(Unaudited)
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The following tables present a reconciliation of results from continuing operations as reported under GAAP to the Non-GAAP results from continuing operations as adjusted for the quarter and nine months ended September 27, 2025 and a comparison to prior year. The Company has chosen to present the following non-GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating continuing operations absent the effect of restructuring and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. While these costs are not expected to continue for any individual transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
Restructuring and other action-related charges in 2025 and 2024 include the following:
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Professional services | Represents professional fees, primarily consulting and advisory services, related to restructuring activities including the Company’s cost transformation and technology modernization initiatives. |
Headcount actions and related severance | Represents charges related to operating model initiatives primarily headcount actions and related severance charges and adjustments related to restructuring activities. |
Supply chain restructuring and consolidation | Represents charges as a result of the sale of the global Champion business and the completed exit of the U.S.-based outlet store business related to significant restructuring and consolidation efforts within the Company’s supply chain network, both manufacturing and distribution, to align the Company’s network to its continuing operations to drive stronger operating performance and margin expansion. |
Loss on extinguishment of debt | Represents charges related to the redemption of the Company’s 4.875% Senior Notes and the refinancing of the Company’s Senior Secured Credit Facility in the first quarter of 2025. |
Corporate asset impairment charges | Primarily represents charges related to a contract terminated in the second quarter of 2024 and impairment of the Company’s headquarters location that was classified as held for sale in the second quarter of 2024. |
Discrete tax benefit | Represents charges primarily resulting from a release of non-cash reserves established at December 31, 2022 related to the Company’s deferred tax assets. |
Other | Primarily represents transaction fees and transition planning charges related to the pending Gildan transactions which were incurred during the third quarter of 2025. The remaining restructuring and other action-related charges within operating profit are charges related to real estate initiatives pertaining to the Company’s corporate headquarters move and other restructuring and action-related charges. |
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Quarters Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
GAAP gross profit, as reported | $ | 363,450 | $ | 373,477 | $ | 1,092,075 | $ | 969,253 | |||||||
As a % of net sales | 40.8 | % | 41.5 | % | 41.3 | % | 37.0 | % | |||||||
Restructuring and other action-related charges: | |||||||||||||||
Headcount actions and related severance | — | — | (121 | ) | 36 | ||||||||||
Supply chain restructuring and consolidation | 240 | 1,117 | (3,414 | ) | 79,510 | ||||||||||
Corporate asset impairment charges | — | — | — | 10,395 | |||||||||||
Other | 15 | — | 15 | — | |||||||||||
Non-GAAP gross profit, as adjusted | $ | 363,705 | $ | 374,594 | $ | 1,088,555 | $ | 1,059,194 | |||||||
As a % of net sales | 40.8 | % | 41.6 | % | 41.2 | % | 40.4 | % | |||||||
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Quarters Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
GAAP operating profit, as reported | $ | 107,528 | $ | 94,037 | $ | 342,094 | $ | 66,248 | |||||||
As a % of net sales | 12.1 | % | 10.4 | % | 12.9 | % | 2.5 | % | |||||||
Restructuring and other action-related charges: | |||||||||||||||
Professional services | 3,119 | 8,271 | 6,485 | 12,704 | |||||||||||
Headcount actions and related severance | (283 | ) | (1,245 | ) | (1,102 | ) | 17,853 | ||||||||
Supply chain restructuring and consolidation | 731 | 10,710 | (2,513 | ) | 169,624 | ||||||||||
Corporate asset impairment charges | — | — | — | 20,107 | |||||||||||
Other | 4,713 | 1,209 | 5,328 | 2,660 | |||||||||||
Non-GAAP operating profit, as adjusted | $ | 115,808 | $ | 112,982 | $ | 350,292 | $ | 289,196 | |||||||
As a % of net sales | 13.0 | % | 12.5 | % | 13.3 | % | 11.0 | % | |||||||
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Quarters Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
GAAP income (loss) from continuing operations, as reported | $ | 271,907 | $ | 24,722 | $ | 371,546 | $ | (143,663 | ) | ||||||
Restructuring and other action-related charges: | |||||||||||||||
Professional services | 3,119 | 8,271 | 6,485 | 12,704 | |||||||||||
Headcount actions and related severance | (283 | ) | (1,245 | ) | (1,102 | ) | 17,853 | ||||||||
Supply chain restructuring and consolidation | 731 | 10,710 | (2,513 | ) | 169,624 | ||||||||||
Corporate asset impairment charges | — | — | — | 20,107 | |||||||||||
Other | 4,713 | 1,209 | 5,328 | 2,660 | |||||||||||
Loss on extinguishment of debt | — | — | 9,979 | — | |||||||||||
Discrete tax expense (benefit) | (227,732 | ) | — | (227,732 | ) | — | |||||||||
Non-GAAP income from continuing operations, as adjusted | $ | 52,455 | $ | 43,667 | $ | 161,991 | $ | 79,285 | |||||||
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Quarters Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
GAAP diluted earnings (loss) per share from continuing operations, as reported | $ | 0.76 | $ | 0.07 | $ | 1.04 | $ | (0.41 | ) | |||||
Restructuring and other action-related charges: | ||||||||||||||
Professional services | 0.01 | 0.02 | 0.02 | 0.04 | ||||||||||
Headcount actions and related severance | 0.00 | 0.00 | 0.00 | 0.05 | ||||||||||
Supply chain restructuring and consolidation | 0.00 | 0.03 | (0.01 | ) | 0.48 | |||||||||
Corporate asset impairment charges | — | 0.00 | — | 0.06 | ||||||||||
Other | 0.01 | 0.00 | 0.01 | 0.01 | ||||||||||
Loss on extinguishment of debt | — | — | 0.03 | — | ||||||||||
Discrete tax expense (benefit) | (0.64 | ) | — | (0.64 | ) | — | ||||||||
Non-GAAP diluted earnings per share from continuing operations, as adjusted1 | $ | 0.15 | $ | 0.12 | $ | 0.45 | $ | 0.23 | ||||||
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1 | Amounts may not be additive due to rounding. |
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TABLE 6-B
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HANESBRANDS INC.
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Supplemental Financial Information
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Reconciliation of Select GAAP Measures to Non-GAAP Measures
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(in thousands, except per share data)
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(Unaudited)
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Last Twelve Months | |||||||
September 27, | September 28, | ||||||
Leverage Ratio: | |||||||
EBITDA1: | |||||||
Net income (loss) from continuing operations | $ | 417,214 | $ | (44,900 | ) | ||
Interest expense, net | 184,468 | 203,089 | |||||
Income tax expense (benefit) | (192,656 | ) | (33,618 | ) | |||
Depreciation and amortization | 46,842 | 84,385 | |||||
Total EBITDA | 455,868 | 208,956 | |||||
Total restructuring and other action-related charges (excluding tax effect on actions)2 | 33,864 | 223,333 | |||||
Other net losses, charges and expenses3 | 134,724 | 99,105 | |||||
Total EBITDA from discontinued operations, as adjusted4 | (1,002 | ) | 161,544 | ||||
Total EBITDA, as adjusted | $ | 623,454 | $ | 692,938 | |||
Net debt: | |||||||
Debt (current and long-term debt and Accounts Receivable Securitization Facility excluding long-term debt issuance costs and debt discount of $24,334 and $31,002, respectively) | $ | 2,366,250 | $ | 3,301,250 | |||
(Less) debt related to an unrestricted subsidiary5 | (109,000 | ) | — | ||||
Other debt and cash adjustments6 | 3,083 | 3,659 | |||||
(Less) Cash and cash equivalents of continuing operations | (217,573 | ) | (316,801 | ) | |||
(Less) Cash and cash equivalents of discontinued operations | (500 | ) | (10,110 | ) | |||
Net debt | $ | 2,042,260 | $ | 2,977,998 | |||
Debt/Income (loss) from continuing operations7 | 5.7 | (73.5 | ) | ||||
Net debt/EBITDA, as adjusted8 | 3.3 | 4.3 | |||||
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1 | Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure. | ||
2 | The last twelve months ended September 27, 2025 includes $19 million on a loss of extinguishment of debt, $12 million of professional services, $5 million related to other restructuring and other action-related charges, $(1) million of supply chain restructuring and consolidation charges and $(3) million of adjustments to headcount actions and related severance charges. The last twelve months ended September 28, 2024 includes $168 million of supply chain restructuring and consolidation charges, $20 million related to corporate asset impairment charges, $19 million of headcount actions and related severance charges, $13 million of professional services and $3 million related to other restructuring and other action-related charges. The items included in restructuring and other action-related charges are described in more detail in Table 6-A. | ||
3 | Represents other net losses, charges and expenses that can be excluded from the Company’s leverage ratio as defined under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended. The last twelve months ended September 27, 2025, primarily includes $63 million of excess and obsolete inventory write-offs, $22 million in other compensation related items primarily stock compensation expense, $15 million in charges related to sales incentive amortization, $15 million of pension non-cash expense, $15 million of non-cash cloud computing expense, $8 million of other non-cash expenses, $1 million related to extraordinary cash events, $(1) million in charges related to unrealized losses due to hedging, and $(4) million adjustment for interest expense on debt and amortization of debt issuance costs related to an unrestricted subsidiary. The last twelve months ended September 28, 2024, primarily includes $54 million of excess and obsolete inventory write-offs, $18 million in other compensation related items primarily stock compensation expense, $16 million of pension non-cash expense, $14 million in charges related to sales incentive amortization, $11 million of non-cash cloud computing expense, $(3) million in adjustments related to unrealized losses due to hedging, $(6) million adjustment to bad debt expense, and a $(6) million adjustment for interest expense on debt and amortization of debt issuance costs related to an unrestricted subsidiary. | ||
4 | Represents Total EBITDA from discontinued operations, as adjusted related to businesses still owned at period end, as adjusted for all items that can be excluded from the Company’s leverage ratio as defined under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended. Total EBITDA from discontinued operations, as adjusted, excludes EBITDA related to the Initial and Deferred Close of the global Champion business and U.S. outlet stores business as the sale of these businesses were completed before the period end. Total EBITDA from discontinued operations, as adjusted, for the last twelve months ended September 28, 2024 includes $(79) million of Total EBITDA from discontinued operations and $241 million of certain discontinued operations restructuring and other action-related charges, other net losses, charges and expenses that can be excluded from the Company’s leverage ratio as defined under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended. | ||
5 | Represents amounts outstanding under an existing accounts receivable securitization facility entered into by an unrestricted subsidiary of the Company. | ||
6 | Includes drawn and undrawn letters of credit, financing leases and cash balances in certain geographies. | ||
7 | Represents Debt divided by Income (loss) from continuing operations, which is the most comparable GAAP financial measure to Net debt/EBITDA, as adjusted. | ||
8 | Represents the Company’s leverage ratio defined as Consolidated Net Total Leverage Ratio under its Sixth Amended and Restated Credit Agreement, dated March 7, 2025, as amended, which excludes other net losses, charges and expenses in addition to restructuring and other action-related charges. |
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Quarters Ended | |||||||
September 27, | September 28, | ||||||
Free cash flow1: | |||||||
Net cash from operating activities | $ | 27,597 | $ | 92,215 | |||
Capital expenditures | (5,331 | ) | (4,088 | ) | |||
Free cash flow | $ | 22,266 | $ | 88,127 | |||
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1 | Free cash flow includes the results from continuing and discontinued operations for all periods presented. |
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View source version on businesswire.com:
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Contacts
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Analysts and Investors Contact:
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T.C. Robillard (336) 519-2115
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News Media Contact:
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Jonathan Binder (336) 682-9654,
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English (US)