The adjusted gross profit also increased by 6 per cent to $316 million, and adjusted gross margin climbed by 165 bps to 41.6 per cent, excluding restructuring and other related charges.
HanesBrands Inc has reported net sales of $760 million in Q1 2025, up 2.1 per cent YoY, with gross margin rising to 41.7 per cent.
Adjusted operating profit grew 61 per cent to $81 million, and adjusted EPS rose to $0.07.
US and international sales declined slightly.
For FY25, sales are projected at $3.47–$3.52 billion.
Its Q2 sales are expected at $970 million, with adjusted EPS of $0.18.
The company continued its supply chain optimisation efforts through consolidation and cost reduction measures aimed at lowering fixed costs, improving efficiencies, and enhancing customer service, all while maintaining lower inventory levels, HanesBrands said in a press release.
The adjusted operating profit increased by 61 per cent to $81 million, accompanied by a 390 bps rise in adjusted operating margin to 10.7 per cent. The diluted earnings per share (EPS) grew by approximately 145 per cent to $0.04, while adjusted EPS climbed 240 per cent to $0.07.
Region-wise, US net sales declined by 1 per cent YoY, as continued growth in basics, active, and new businesses—fuelled by innovation, increased brand investments, and expanded programming—was offset by persistent challenges in the intimate apparel segment, mirroring broader market trends.
The international net sales fell by 2 per cent on a reported basis, impacted by a $12 million foreign exchange headwind. However, on a constant currency basis, international sales rose 4 per cent, with growth recorded in Australia and Asia and stable performance in the Americas.
For the fiscal 2025, ending January 3, 2026, the company expects net sales from continuing operations to range between approximately $3.47 billion and $3.52 billion.
At the midpoint, net sales are anticipated to remain broadly consistent with the prior year on a reported basis and to grow by around 1 per cent on an organic constant currency basis. GAAP operating profit is forecast to be between $425 million and $440 million, while adjusted operating profit is expected to range from $450 million to $465 million, excluding approximately $25 million in pretax restructuring and other action-related charges, added the release.
For the second quarter (Q2) of 2025, ending June 28, HanesBrands expects net sales of approximately $970 million, including an estimated $15 million headwind from foreign currency exchange rate changes.
Net sales are projected to remain broadly consistent with the prior year on both a reported and organic constant currency basis. GAAP operating profit is anticipated to be around $129 million, while adjusted operating profit is forecast at approximately $136 million, excluding roughly $7 million in pretax restructuring and other action-related charges.
GAAP earnings per share (EPS) is projected at approximately $0.16, with adjusted EPS expected at $0.18, based on an estimated 357 million fully diluted shares outstanding.
“We delivered another strong quarter, including revenue, operating profit and earnings per share that exceeded our expectations as we continue to see the benefits of our growth strategy and prior transformation initiatives,” said Steve Bratspies, chief executive officer (CEO) at HanesBrands. “We also reiterated our full-year outlook, which now reflects our expected impact from US tariffs, as the current environment presents challenges but also creates real revenue opportunities.
“We are confident that we can fully mitigate the cost headwinds as we have many levers to pull, including further cost reductions and pricing actions. We are also actively pursuing new revenue opportunities, which we believe we are in an advantaged position to capture given our western hemisphere supply chain speed and capabilities matched with our strong retailer relationships,” added Bratspies.
Fibre2Fashion News Desk (SG)
