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What to Expect from HanesBrands in 1Q16

Sonya Bells

A Sneak Peek inside HanesBrands ahead of Its 1Q16 Results

HanesBrands’ 1Q16 earnings preview

HanesBrands (HBI), world’s largest marketer of basic apparel, is slated to report its first quarter 2016 results on April 21, 2016. The company reported a disappointing 4Q15, with earnings missing analyst estimates of $0.46 by 2 cents. HBI reported sales of ~$1.4 billion, missing analyst estimates by $120 million. The company cited the warmer-than-anticipated winter as the main reason for the declines in sales and earnings.

HBI’s fiscal 2015 results were impressive, however, as the company saw an 8% YoY (year-over-year) growth in sales to $5.7 billion. The company’s adjusted EPS improved by 17% YoY to reach $1.66 in fiscal 2015. It has predicted EPS (earnings per share) to reach $1.85–$1.91 during fiscal 2016 versus the $1.90 consensus estimate.

About HanesBrands

Headquartered in North Carolina, HBI is a manufacturer and marketer of leading everyday basic apparel, with brands such as Hanes, Champion, Playtex, Bali, Maidenform, JMS or Just My Size, Wonderbra, and Gear for Sports. The company sells bras, panties, shapewear, sheer hosiery, men’s underwear, children’s underwear, socks, T-shirts, sweatshirts, fleece, and other activewear throughout the world.

In fiscal 2015, the company derived 80% of its revenue from US sales. By comparison, apparel and fashion peers PVH Corp (PVH), VF Corp (VFC), and Ralph Lauren (RL) have a greater international presence and derived ~54%, ~63%, and ~66%, respectively, of their revenues from US sales last year.

Notably, HBI is a member of the S&P 500 and ranks at 490 on the Fortune 500 list. The iShares Morningstar Mid-Cap Growth Index Fund (JKH) invests 0.81% of its total holdings in HanesBrands.

What you’ll find in this series

In this series, you’ll find an earnings preview of HanesBrands’ 1Q16 results. We’ll review the company’s 4Q15 results, discuss its guidance for fiscal 2016, present Wall Street’s view on the company, and compare its valuations and stock market performance to those of its peers.

Let’s begin with HanesBrands’ fiscal 2015 performance.

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