Hanesbrands Hits a 52-Week High - Analyst Blog

By
A A A

Shares of Hanesbrands, Inc. ( HBI ) reached a new 52-week high of $76.26 on Mar 26. Share prices have been soaring ever since the company held investor meeting last month where it announced that it will continue with its Innovate-to-Elevate strategy which has been helping it to reap profits for the past few years. Shares of this textile retailer eventually closed at $75.61, recording a healthy year-to-date return of 68.7%.

Growth Drivers

Hanesbrands highlighted its Innovate-to-Elevate strategy in its investor call held last month. It also announced that there are several product launches in the pipeline for fiscal 2014. The company also indicated strategic acquisitions in the upcoming year.

Hanesbrands upped its guidance for fiscal 2014 during its fiscal 2013 earnings conference call last month. It now expects earnings per share in the range of $4.60 to $4.80, higher than $4.25 to $4.50 expected previously.

Hanesbrands plans to stick to its 'Innovate to Elevate' strategy that helped it to achieve higher unit selling prices and lower unit costs. The strategy has this helped Hanesbrands to increase its adjusted operating profit margin by 400 basis points over the past five years

Moreover, it has generated $1.9 billion in cumulative cash from operations over the same time frame. This substantial amount of cash helped the company to prepay its debts, initiate a regular quarterly cash dividend, and acquire Maidenform Brands, Inc. During its investor meeting last month, Hanesbrands announced that it plans to use the cash for further acquisitions to generate value.

Further, Hanesbrands' focus on innovation, emphasis on higher-priced and higher-margin products, lower cotton costs and prudent expense management are expected to drive solid results in 2014.

Hanesbrands sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the textile-apparel sector include Joe's Jeans Inc. ( JOEZ ), Michael Kors Holdings Ltd ( KORS ) and Columbia Sportswear Co. ( COLM ). While Michael Kors carry the same Zacks Rank as Hanesbrands, Columbia Sportswear and Joe's Jeans have a Zacks Rank #2 (Buy).



COLUMBIA SPORTS (COLM): Free Stock Analysis Report

HANESBRANDS INC (HBI): Free Stock Analysis Report

JOES JEANS INC (JOEZ): Free Stock Analysis Report

MICHAEL KORS (KORS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: COLM , HBI , JOEZ , KORS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

64,644,045
  • $16.31 ▼ 21.25%
28,854,571
  • $41.115 ▲ 0.90%
27,329,997
  • $118.48 ▲ 0.75%
24,727,135
  • $77.57 ▲ 2.57%
24,615,515
  • $24.02 ▲ 0.33%
20,741,562
  • $10.64 ▲ 2.41%
19,037,987
  • $41.16 ▲ 3.52%
18,505,538
  • $39.19 ▲ 4.15%
As of 11/26/2014, 01:55 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com