Why the Hanesbrands share is up 22% today
Shares in Hanesbrands (NYSE: HBI) rose 22% in morning trade on Tuesday after the basic apparel maker reported solid fourth-quarter sales and earnings growth.
The results show that Hanesbrands was perfectly positioned to benefit from the health and wellness trends that have evolved in the wake of the coronavirus pandemic. Its basics brands like Playtex, Maidenform and Wonderbra went well with the casual wear chosen by consumers, as did the Champion brand.
Revenue for the quarter rose to $ 1.8 billion from $ 1.75 billion, slightly beating consensus estimates of $ 1.64 billion.
Although Hanesbrands adjusted earnings were $ 0.38 per share, up from $ 0.46 a year earlier, it beat Wall Street’s forecast of $ 0.29 per share.
Hanesbrands’ Innerwear segment saw sales jump 13% year over year and gained market share in the children’s market, while sportswear sales rose 11% due to Champion’s strong global sales, a nice turnaround after that aim stopped wearing the C9 line last year.
International business also continued to improve, with sales up 2%, but adjusted for currency effects by 3% less than in the previous year. Hanesbrands also declared a dividend of $ 0.15 per share, the 32nd Shareholder payout.
Hanesbrands expects mid-range revenue growth of 14% for the first quarter and a 10% increase in operating profit. Hanesbrands is ready to run even higher.
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