American company HanesBrands Inc's gross profit rises 5.2% in FY24

Selling, general, and administrative (SG&A) expenses rose 14.4 per cent to $1.17 billion, representing 33.5 per cent of net sales, up from 28.2 per cent in the previous year. Operating profit fell 30.2 per cent to $185.9 million, with an operating margin of 5.3 per cent, compared to 7.3 per cent in 2023. The net interest expense was $195.9 million, down from $214.2 million, HanesBrands said in a press release.

The company reported a loss from continuing operations of $98 million, compared to income of $29.1 million in 2023. Including discontinued operations, net loss widened to $320.4 million from $17.7 million in 2023. Earnings per share (EPS) from continuing operations stood at a loss of $0.28, while total net loss per share was $0.91, compared to a loss of $0.05 per share in 2023.

Total segment net sales of $3.49 billion saw a decline of 2.2 per cent from $3.57 billion in 2023. US segment net sales fell by 2.1 per cent to $2.58 billion, compared to $2.64 billion in the prior year. International segment net sales declined by 2.6 per cent to $908.4 million from $933.1 million. Other net sales dropped significantly by 74.4 per cent to $17.9 million from $69.7 million in 2023.

“We delivered a strong quarter and full year with results across all key metrics exceeding our expectations as the benefits of our transformation strategy are clearly working. We enter 2025 as a new company. We are a more simplified, focused business with a powerful asset base and significant competitive advantages. We believe we are well positioned to build on fourth quarter’s momentum and deliver positive sales growth, additional margin expansion, strong cash generation and continued debt reduction, providing us multiple levers to create additional shareholder value in 2025 and beyond,” said Steve Bratspies, chief executive officer (CEO) at HanesBrands.

Fourth-quarter 2024 financial performance

For the fourth quarter (Q4) of 2024, HanesBrands posted net sales of $888.5 million, reflecting a 4.5 per cent increase from $850.3 million in Q4 2023. The gross profit rose by 14.3 per cent to $390.3 million, with the gross margin improving to 43.9 per cent from 40.2 per cent.

SG&A expenses increased by 9.5 per cent to $270.6 million, accounting for 30.5 per cent of net sales, up from 29.1 per cent in Q4 2023. Operating profit surged by 26.7 per cent to $119.7 million, with an operating margin of 13.5 per cent, compared to 11.1 per cent in the previous year.

Interest expense stood at $46.5 million, down from $53.7 million. Income from continuing operations declined by 53.8 per cent to $45.7 million from $98.8 million in Q4 2023. Including discontinued operations, the company reported a net loss of $12.9 million, compared to net income of $77.9 million in the prior year. EPS from continuing operations stood at $0.13, while total net loss per share was $0.04, compared to net income of $0.22 per share in Q4 2023.

The company’s total segment net sales were $871.7 million in Q4 2024, reflecting a 2.7 per cent increase from $848.5 million in Q4 2023. US segment net sales grew by 3.0 per cent to $618.7 million, compared to $600.7 million in the prior year. International segment net sales rose by 2.1 per cent to $252.9 million from $247.8 million in Q4 2023. Other net sales surged significantly by 839.2 per cent to $16.8 million from $1.8 million in Q4 2023.

Outlook

For the full year 2025, which ends on January 3, 2026, and includes a 53^rd week, HanesBrands expects net sales from continuing operations to range between $3.47 billion and $3.52 billion. This projection accounts for an estimated headwind of approximately $60 million due to changes in foreign currency exchange rates. Adjusted operating profit from continuing operations is expected to be between $450 million and $465 million. GAAP earnings per share from continuing operations are anticipated to be approximately $0.39 to $0.45, while adjusted earnings per share from continuing operations are projected to range from $0.51 to $0.55.

Fibre2Fashion News Desk (SG)