) 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%.
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
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
Hanesbrands sports a Zacks Rank #1 (Strong Buy). Other stocks
worth considering in the textile-apparel sector include
Joe's Jeans Inc.
Michael Kors Holdings Ltd
Columbia Sportswear Co.
). While Michael Kors carry the same Zacks Rank as Hanesbrands,
Columbia Sportswear and Joe's Jeans have a Zacks Rank #2
COLUMBIA SPORTS (COLM): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
JOES JEANS INC (JOEZ): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
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