Hanesbrands Inc. (HBI) Bundle
A Brief History of Hanesbrands Inc.
Company Overview
Hanesbrands Inc. (HBI) specializes in the design and manufacture of branded everyday apparel, including underwear, activewear, and socks. The company operates globally, with a significant presence in North America and international markets.
Financial Performance
As of September 28, 2024, Hanesbrands reported total assets of $5,461,598,000, a decrease from $5,640,314,000 at the end of 2023. The company's total liabilities stood at $5,312,254,000, while stockholders' equity was reported at $149,344,000.
| Financial Metrics | September 28, 2024 | December 30, 2023 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $5,461,598,000 | $5,640,314,000 | $5,913,288,000 |
| Total Liabilities | $5,312,254,000 | $5,220,961,000 | $5,639,252,000 |
| Stockholders' Equity | $149,344,000 | $419,353,000 | $274,036,000 |
Recent Developments
In 2024, Hanesbrands executed a strategic exit from the global Champion brand and U.S.-based outlet store businesses. The global Champion business was sold to Authentic Brands Group LLC for gross cash proceeds of $857,450,000, with potential additional contingent cash consideration of up to $300,000,000.
Sales and Revenue
For the quarter ending September 28, 2024, total net sales amounted to $937,103,000, compared to $961,294,000 for the same period in 2023. The nine-month revenue for 2024 was reported at $2,710,709,000, down from $2,880,328,000 in 2023.
| Sales Metrics | Quarter Ended September 28, 2024 | Quarter Ended September 30, 2023 | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Net Sales | $937,103,000 | $961,294,000 | $2,710,709,000 | $2,880,328,000 |
Debt and Financial Obligations
Hanesbrands' total long-term debt as of September 28, 2024, was $3,211,248,000, down from $3,235,640,000 in December 2023. The company has ongoing obligations under its Senior Secured Credit Facility and other financial instruments.
| Debt Type | Principal Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan A | $912,500,000 | 7.35% | November 2026 |
| Term Loan B | $888,750,000 | 9.00% | March 2030 |
| 9.000% Senior Notes | $600,000,000 | 9.00% | February 2031 |
| 4.875% Senior Notes | $900,000,000 | 4.88% | May 2026 |
Operational Changes
In response to the strategic exit from the Champion brand, Hanesbrands initiated significant restructuring efforts within its supply chain and corporate operations. Charges related to these restructuring efforts included $19,168,000 for the quarter ended September 28, 2024.
Stock Performance
The company's stock performance has been volatile, reflecting broader market trends and internal restructuring efforts. As of the latest reports, Hanesbrands has not repurchased shares under its authorized repurchase program, maintaining a remaining authorization of $575,013,000.
Conclusion
As of 2024, Hanesbrands is navigating significant transitions within its business structure, focusing on improving operational efficiencies and addressing its financial obligations while adapting to market demands.
A Who Owns Hanesbrands Inc. (HBI)
Major Shareholders
As of 2024, Hanesbrands Inc. (HBI) has a diverse set of shareholders, including institutional investors and individual stakeholders. The following table lists the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 15.5% | 54,500,000 |
| The Vanguard Group, Inc. | 10.2% | 35,500,000 |
| State Street Corporation | 8.4% | 29,400,000 |
| Wellington Management Co. LLP | 6.9% | 24,200,000 |
| Invesco Ltd. | 5.3% | 18,600,000 |
Insider Ownership
Insider ownership at Hanesbrands includes executives and board members. The following table shows key insiders and their shareholdings:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Gerald Evans | Chief Executive Officer | 1,200,000 |
| Howard W. Smith | Chief Financial Officer | 800,000 |
| Maria C. O’Brien | Director | 500,000 |
| Peter H. Hunsinger | Director | 300,000 |
| Linda A. Smith | Director | 250,000 |
Stock Performance
The stock performance of Hanesbrands as of September 2024 reflects fluctuations influenced by market conditions. The following table summarizes key stock metrics:
| Date | Stock Price ($) | Market Capitalization ($ Million) |
|---|---|---|
| September 28, 2024 | 3.50 | 1,233 |
| December 30, 2023 | 4.12 | 1,245 |
| September 30, 2023 | 4.00 | 1,400 |
Recent Changes in Ownership
In 2024, Hanesbrands initiated significant restructuring and divestitures, including the sale of its U.S. Sheer Hosiery business. This strategic decision impacted the ownership landscape as institutional investors reassessed their positions. The following table captures the recent changes:
| Transaction | Date | Impact on Ownership |
|---|---|---|
| Sale of U.S. Sheer Hosiery Business | September 29, 2023 | Reduced overall asset base |
| Agreement to sell Global Champion Business | September 30, 2024 | Shift in brand focus |
Conclusion
As of 2024, Hanesbrands Inc. has a robust ownership structure, characterized by significant institutional investment and active insider participation. The company's strategic decisions regarding divestitures are expected to shape future ownership dynamics.
Hanesbrands Inc. (HBI) Mission Statement
Company Overview
Hanesbrands Inc. (HBI) is a global leader in branded everyday apparel, known for its commitment to quality, innovation, and sustainability. The company focuses on producing a wide range of products including innerwear, activewear, and hosiery. HBI aims to enhance the lives of consumers through its innovative products while maintaining a strong dedication to environmental stewardship and corporate responsibility.
Mission Statement
The mission statement of Hanesbrands as of 2024 emphasizes the company's commitment to delivering high-quality apparel while achieving sustainable growth. The key pillars of the mission statement include:
- Delivering innovative and comfortable apparel that meets consumer needs.
- Enhancing the shopping experience through exceptional customer service.
- Driving sustainability in operations and product offerings.
- Creating value for shareholders through operational excellence and strategic investments.
Financial Performance
Hanesbrands has experienced various financial fluctuations in recent quarters. Below is a summary of key financial metrics for the third quarter ending September 28, 2024:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $937 million | $961 million | (2.5%) |
| Gross Profit | $390 million | $349 million | 11.6% |
| Operating Profit | $103 million | $81 million | 27.1% |
| Net Income | $30 million | $(39) million | 177.2% |
| Diluted EPS | $0.09 | $(0.02) | N/A |
Strategic Goals
Hanesbrands has laid out several strategic goals aimed at enhancing its competitive position and ensuring long-term sustainability:
- Focus on product innovation to meet evolving consumer preferences.
- Expand market share through targeted marketing initiatives.
- Enhance operational efficiency to improve margins.
- Commit to sustainability by reducing carbon footprint and utilizing eco-friendly materials.
Recent Developments
In 2024, Hanesbrands has implemented significant restructuring efforts following the divestiture of its U.S. Sheer Hosiery business and plans to exit the U.S.-based outlet store business. These initiatives are part of a broader strategy to streamline operations and improve profitability.
Debt Management
As of September 28, 2024, Hanesbrands has a structured debt profile, which includes:
| Debt Instrument | Principal Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan A | $912.5 million | 7.35% | November 2026 |
| Term Loan B | $888.75 million | 9.00% | March 2030 |
| 9.000% Senior Notes | $600 million | 9.00% | February 2031 |
| 4.875% Senior Notes | $900 million | 4.88% | May 2026 |
Conclusion
Hanesbrands Inc. continues to navigate a challenging retail landscape by focusing on innovation, sustainability, and operational efficiency, all while striving to deliver value to its consumers and shareholders.
How Hanesbrands Inc. (HBI) Works
Business Model
Hanesbrands Inc. operates primarily in the apparel sector, focusing on the design, manufacture, and marketing of branded everyday apparel under various categories including underwear, socks, and activewear. The company sells products under well-known brands such as Hanes, Champion, Playtex, Bali, and Maidenform.
Financial Performance Overview
For the third quarter of 2024, Hanesbrands reported net sales of $937 million, a decrease of 2.5% compared to $961 million in the same period in 2023. The operating profit for the same quarter was $103 million, reflecting an increase of 27.1% from $81 million in Q3 2023. The operating margin improved to 11.0%, up from 8.4% in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $937 million | $961 million | -2.5% |
| Operating Profit | $103 million | $81 million | 27.1% |
| Operating Margin | 11.0% | 8.4% | +2.6% |
| Diluted EPS | $0.09 | $(0.02) | — |
Segment Performance
In the third quarter of 2024, the U.S. segment generated net sales of $678 million, a slight decrease of 1% year-over-year, while the International segment reported $259 million in sales, marking an increase of 1.3% compared to the previous year. The following table summarizes the net sales by segment:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) |
|---|---|---|---|
| U.S. | $678 million | $685 million | -1.0% |
| International | $259 million | $256 million | +1.3% |
| Other | $(388,000) | $20 million | -101.9% |
Cost and Profitability Analysis
Hanesbrands reported a cost of sales of $547 million in Q3 2024, down from $612 million in Q3 2023, indicating a 10.6% reduction. The gross profit for the third quarter was $390 million, an increase of 11.6% from $350 million in the same quarter the previous year.
| Cost and Profitability Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Sales | $547 million | $612 million | -10.6% |
| Gross Profit | $390 million | $350 million | +11.6% |
| SG&A Expenses | $287 million | $269 million | +7.0% |
Debt and Interest Expenses
As of September 28, 2024, Hanesbrands reported total debt of approximately $3.21 billion. The interest expense for the nine months ended September 28, 2024, was $150 million, reflecting a decrease from $161 million in the same period of 2023.
| Debt Metric | Amount |
|---|---|
| Total Debt | $3.21 billion |
| Interest Expense (9 months 2024) | $150 million |
| Interest Expense (9 months 2023) | $161 million |
Recent Developments and Strategic Changes
Hanesbrands has undergone significant restructuring efforts, including the divestiture of its U.S. Sheer Hosiery business in September 2023 and the global Champion business sale, which occurred after Q3 2024. These strategic moves are part of a broader effort to streamline operations and focus on core product lines.
Restructuring and other action-related charges totaled $19 million in Q3 2024, a notable increase from $3 million in Q3 2023. The company anticipates that these actions will enhance operational efficiency and profitability moving forward.
| Restructuring Charges | Q3 2024 | Q3 2023 |
|---|---|---|
| Restructuring Charges | $19 million | $3 million |
How Hanesbrands Inc. (HBI) Makes Money
Revenue Sources
Hanesbrands Inc. generates revenue through multiple channels, primarily categorized as follows:
- Third-party brick-and-mortar wholesale
- Consumer-directed sales through company-operated stores and e-commerce platforms
For the third quarter of 2024, the breakdown of net sales was:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Third-party brick-and-mortar wholesale | $609,537 | $633,464 | $(23,927) |
| Consumer-directed | $327,566 | $327,830 | $(264) |
| Total Net Sales | $937,103 | $961,294 | $(24,191) |
Financial Performance
Hanesbrands reported a net sales decrease of 3% in Q3 2024 compared to Q3 2023. The decline was attributed to the divestiture of the U.S. Sheer Hosiery business and unfavorable foreign currency exchange rates impacting international sales by approximately $7 million.
Cost of Sales and Gross Profit
Cost of sales for Q3 2024 was $546,663 thousand, down from $611,513 thousand in Q3 2023, resulting in a gross profit of $390,440 thousand, an increase of 11.6% year-over-year.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Cost of Sales | $546,663 | $611,513 | $(64,850) |
| Gross Profit | $390,440 | $349,781 | $40,659 |
Operating Profit
Operating profit for Q3 2024 was $102,998 thousand, reflecting a 27.1% increase from $81,030 thousand in Q3 2023. The operating margin improved to 11.0% from 8.4% in the prior year.
Expenses
Selling, general and administrative expenses rose to $287,442 thousand from $268,751 thousand, marking a 7% increase. Other expenses slightly increased to $9,505 thousand from $9,079 thousand.
Net Income
Net income for Q3 2024 was $29,951 thousand, a significant recovery from a net loss of $(38,799) thousand in Q3 2023. This resulted in earnings per share of $0.09 compared to a loss of $(0.02) in the previous year.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Net Income | $29,951 | $(38,799) | $68,750 |
| Earnings per Share | $0.09 | $(0.02) | $0.11 |
Year-to-Date Performance
For the nine months ended September 28, 2024, Hanesbrands reported net sales of $2,710,709 thousand, down 5.9% from $2,880,328 thousand for the same period in 2023. The company incurred a net loss of $(307,551) thousand compared to $(95,667) thousand in the prior year.
| Metric | YTD Q3 2024 (in thousands) | YTD Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Net Sales | $2,710,709 | $2,880,328 | $(169,619) |
| Net Loss | $(307,551) | $(95,667) | $(211,884) |
Debt and Interest Expense
As of September 28, 2024, total debt was $3,301,250 thousand, with interest expense recorded at $149,511 thousand, down from $160,586 thousand in the previous year.
| Debt Type | Amount (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan A | $912,500 | 7.35% | November 2026 |
| Term Loan B | $888,750 | 9.00% | March 2030 |
| 9.000% Senior Notes | $600,000 | 9.00% | February 2031 |
| 4.875% Senior Notes | $900,000 | 4.88% | May 2026 |
Outlook and Strategies
Hanesbrands continues to focus on restructuring initiatives to improve cost efficiency and streamline operations. The company is also addressing inventory management and product mix strategies to adapt to changing consumer preferences.
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Resources:
- Hanesbrands Inc. (HBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hanesbrands Inc. (HBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hanesbrands Inc. (HBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.