Shares of the apparel chain Hanesbrands Inc. (
HBI ) reached a new
52-week high of $51.89 on Monday Jun 17, following the company's
solid results in the first quarter of 2013 and the company's
decision to initiate a quarterly dividend from Jun 3, 2013.
The closing price of the textile retailer HBI was $51.71 on Jun
17, representing a solid 1-year return of about 78.3% and a
year-to-date return of about 45.3%. Average volume of shares traded
over the last three months stands at approximately 1089K.
Hanesbrands' focus on innovation, emphasis on higher-priced and
higher-margin products, lower cotton costs and prudent expense
management led to the solid results. In addition, the 'Innovate to
Elevate' strategy helped Hanesbrands achieve higher unit selling
prices and lower unit costs, which contributed to margin
enhancement and improved profitability in the first quarter.
Hanesbrands delivered first-quarter 2013 earnings of 51 cents
compared to a loss of 25 cents in the comparable prior-year
quarter. The upswing was driven by lower cotton costs and
disciplined cost management. Earnings also beat the Zacks Consensus
Estimate by 1.9%. In fact, Hanesbrands has topped earnings
estimates in the last five quarters.
Though revenues were affected by a tough retail environment and
lower consumer demand, gross margin increased 140 basis points
(bps) in the quarter, resulting from positive pricing and shutting
down of underperforming businesses. Operating margin also expanded
790 bps to 9.0% on the back of lower cotton costs, positive pricing
and success of the Innovate-to-Elevate strategy.
Other Stocks to Consider
Hanesbrands carries a Zacks Rank #1 (Strong Buy). Other stocks
in the textile and apparel industry that are also worth considering
are Michael Kors Holding Ltd ( KORS ) and
Oxford Industries Inc. ( OXM ), both carrying a
Zacks Rank #2 (Buy)HANESBRANDS INC (HBI): Free Stock Analysis
ReportMICHAEL KORS (KORS): Free Stock Analysis ReportOXFORD INDS INC (OXM): Free Stock Analysis
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