- Company expects first-quarter 2017 net
sales of approximately $1.38 billion, GAAP EPS of $0.19 to $0.20,
adjusted EPS of $0.28 to $0.29, and strong cash flow
- Company reaffirms full-year 2017
financial guidance
- Succession plan underway for retirement
of CFO at the end of 2017
HanesBrands (NYSE: HBI) today announced preliminary
first-quarter 2017 net sales and EPS and will hold its regular
first-quarter investor conference call at 4:30 p.m. EDT Tuesday,
May 2, 2017.
The company also announced that Chief Financial Officer Richard
D. Moss has decided to retire at the end of 2017. The company has
initiated an internal and external search for CFO candidates to
succeed Moss.
Hanes expects to report first-quarter net sales of approximately
$1.38 billion and strong net cash from operations. The company
expects a modest use of cash for the quarter of $25 million to $50
million.
For earnings from continuing operations, the company expects
GAAP earnings per diluted share of $0.19 to $0.20 and adjusted EPS
excluding actions of $0.28 to $0.29. The EPS expectations compare
with first-quarter GAAP EPS guidance of $0.21 to $0.24 and adjusted
EPS guidance of $0.27 to $0.29.
Hanes has reaffirmed its full-year 2017 financial guidance
issued in February, including expectations for net sales, operating
profit, EPS, cash from operations, and acquisition-related pretax
charges.
“We’re off to a strong start in 2017, and we are diligently
focused on daily execution and performance,” said Hanes Chief
Executive Officer Gerald W. Evans Jr. “This year is an important
transition as we set the foundation of another decade of
success.”
Moss, 59, who has held executive positions with Hanes for 11
years, will continue to serve as CFO while the company conducts an
internal and external search for his successor. Moss’ finance
responsibilities include overseeing the finance-related execution
of the company’s long-term strategies and improvement
initiatives.
“Rick has been an invaluable leader in our organization,” said
Evans, who was promoted to CEO in October 2016. “I know Rick has
been looking forward to retirement, and I am grateful that he
committed to staying on through my transition as CEO. We expect a
very smooth succession process for the CFO role.”
Moss helped Hanes navigate from a spinoff company with
significant debt to one of the world’s largest basic apparel
companies with a strong balance sheet focused on creating
shareholder value through brand building, margin growth,
international expansion, and disciplined capital deployment.
“This is an opportune time for me and the company to plan my
retirement,” Moss said. “As we proceed with the succession process,
I will remain focused on supporting our Sell More, Spend Less and
Generate Cash strategies and goals for the year. Hanes is a very
successful company that is well-positioned to continue creating
strong shareholder value for many years.”
Moss joined the company in January 2006 as treasurer. He was
promoted to CFO in October 2011, overseeing the company’s global
finance, investor relations and corporate development
functions.
Hanes has commissioned executive search firm Heidrick &
Struggles to assist in the CFO succession.
First-Quarter Investor Conference
Call
At the close of regular trading May 2, 2017, on the New York
Stock Exchange, Hanes will issue a news release disclosing
financial results for the quarter ended April 1, 2017.
The company will hold its quarterly investor conference call at
4:30 p.m. EDT that day with the call expected to conclude by 5:30
p.m. An Internet broadcast of the call, which will consist of
prepared comments followed by a question-and-answer session, may be
accessed via the investors section of the Hanes corporate website,
www.Hanes.com/investors.
Replays of the conference call will be available via the
Internet and telephone. An archived replay of the audio webcast
will be available in the investors section of the Hanes corporate
website. The telephone playback will be available from 7:30 p.m.
EDT May 2, 2017, through midnight EDT May 9, 2017. The replay will
be available by calling toll-free (855) 859-2056, or by toll call
at (404) 537-3406. The replay pass code is 7660290.
Note on Adjusted Measures and
Reconciliation to GAAP Measures
To supplement financial guidance prepared in accordance with
generally accepted accounting principles, Hanes provides quarterly
and full-year results and guidance concerning certain non-GAAP
financial measures, including adjusted EPS. Adjusted EPS is defined
as diluted EPS excluding actions and the tax effect on actions.
Actions during the first quarter of 2017 were adjustments for
acquisition-related integration costs. Acquisition-related
integration costs include adjustments directly related to the
integration of completed acquisitions. These costs include legal
fees, consulting fees, severance costs, certain purchase accounting
items, facility closures, inventory write-offs, information
technology integration costs, and similar charges. While these
costs are not operational in nature and 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 the future as the company continues to integrate
prior acquisitions and pursues any future acquisitions. Hanes has
chosen to present non-GAAP measures excluding the effects of these
actions 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 acquisition‐related
expenses and other actions. Hanes believes these non-GAAP measures
provide management and investors with valuable supplemental
information for analyzing the operating performance of the
company’s ongoing business without giving effect to costs or
foreign currency gains associated with the execution and
integration of any of the aforementioned actions taken.
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.
In the first quarter of 2017, Hanes expects to incur
approximately $35 million to $40 million in pretax
acquisition-related integration charges related to Hanes Europe
Innerwear, Hanes Australasia, Knights Apparel and Champion
Europe.
Cautionary Statement Concerning
Forward-Looking Statements
This press release contains certain “forward-looking
statements,” as defined under U.S. federal securities laws,
including those regarding preliminary quarterly results as well as
guidance as to future performance. These forward-looking statements
are based on our current intent, beliefs, plans and expectations.
Readers are cautioned not to place any undue reliance on any
forward-looking statements. Forward-looking statements necessarily
involve risks and uncertainties, many of which are outside of our
control, that could cause actual results to differ materially from
such statements and from our historical results and experience.
These risks and uncertainties include such things as: the highly
competitive and evolving nature of the industry in which we
compete; any inadequacy, interruption, integration failure or
security failure with respect to our information technology;
significant fluctuations in foreign exchange rates; the rapidly
changing retail environment; our complex multinational tax
structure; our ability to properly manage strategic projects; our
ability to attract and retain a senior management team with the
core competencies needed to support our growth in global markets;
risks related to our international operations, including the impact
to our business as a result of the United Kingdom’s recent
referendum to leave the European Union; the impact of significant
fluctuations and volatility in various input costs, such as cotton
and oil-related materials, utilities, freight and wages; our
ability to access sufficient capital at reasonable rates or
commercially reasonable terms or to maintain sufficient liquidity
in the amounts and at the times needed; 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. Since it is not possible to predict
or identify all of the risks, uncertainties and other factors that
may affect future results, the above list should not be considered
a complete list. Any forward-looking statement speaks only as of
the date on which such statement is made, and HanesBrands
undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, other than as required by law.
HanesBrands
HanesBrands, based in Winston-Salem, N.C., is a socially
responsible leading marketer of everyday basic innerwear and
activewear apparel in the Americas, Europe, Australia and
Asia-Pacific under some of the world’s strongest apparel brands,
including Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds,
JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra,
Berlei, and Gear for Sports. The company sells T-shirts, bras,
panties, shapewear, underwear, socks, hosiery, and activewear
produced in the company’s low-cost global supply chain. A member of
the S&P 500 stock index, Hanes has approximately 68,000
employees in more than 40 countries and is ranked No. 448 on the
Fortune 500 list of America’s largest companies by sales. Hanes
takes pride in its strong reputation for ethical business
practices. The company is the only apparel producer to ever be
honored by the Great Place to Work Institute for its workplace
practices in Central America and the Caribbean, and is ranked No.
167 on the Forbes magazine list of America’s Best Large Employers.
For eight consecutive years, Hanes has won the U.S. Environmental
Protection Agency Energy Star sustained excellence/partner of the
year award – the only apparel company to earn sustained excellence
honors. The company ranks No. 172 on Newsweek magazine’s green list
of 500 largest U.S. companies for environmental achievement. More
information about the company and its corporate social
responsibility initiatives, including environmental, social
compliance and community improvement achievements, may be found at
www.Hanes.com/corporate. Connect with HanesBrands via social media
on Facebook (www.facebook.com/hanesbrandsinc) and Twitter
(@hanesbrands).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170412006191/en/
HanesBrandsNews Media:Matt Hall, 336-519-3386orAnalysts and
Investors:TC Robillard, 336-519-2115
Hanesbrands (NYSE:HBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hanesbrands (NYSE:HBI)
Historical Stock Chart
From Apr 2023 to Apr 2024