HanesBrands keeps 2013 forecast, shares slip

HanesBrands keeps forecast for year, says some sales trends have improved recently

Associated Press

WINSTON-SALEM, N.C. (AP) -- HanesBrands on Tuesday kept its forecast for the year, saying back-to-school sales were softer than desired but some trends improved in late August and early September.

Many retailers have reported disappointing sales for the back-to-school season.

The company also forecast an earnings goal for 2014 that was roughly in line with what analysts expect, but shares slipped in after-market trading.

Hanes expects to earn $3.50 to $3.65 per share for the year on revenue of $4.55 billion. Analysts polled by FactSet, on average, were anticipating earnings of $3.67 per share on revenue of $4.56 billion.

The company's guidance does not reflect any potential impact from its acquisition of Maidenform Brands Inc., which is expected to close by Oct. 8. Hanes expects the deal to increase its earnings in the first year, eventually adding more than $500 million in additional annual sales and 60 cents per share in earnings.

CEO Richard Noll said that a "reasonable goal" for the company's 2014 earnings would be "in the low $4 (per share) range," which includes a 10- to 15-cent contribution from the deal. Analysts are forecasting earnings of $4.25 per share for 2014.

HanesBrands, based in Winston-Salem, N.C., owns brands such as Hanes, Champion, Playtex and Bali. Its shares fell 74 cents to $62.26 in after-hours trading. The company's stock added $1.03 to close regular trading at $63.

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