) has announced that it has retained its fiscal 2014 earnings
guidance which was announced during the fourth-quarter and fiscal
2013 earnings conference call on Jan 29, 2014.
The Winston-Salem, NC-based company continues to expect fiscal
2014 earnings per share in a range of $4.60 to $4.80. HBI had
raised its fiscal 2014 earnings guidance during the fiscal 2013
earnings conference to reflect the decent second-half
It expects operating profits between $640 million and $660
million for the year. Net sales are expected to be slightly less
than $5.1 billion in fiscal 2014. The company expects the
Maidenform acquisition (Oct 8, 2013) to contribute approximately
$500 million to sales during fiscal 2014.
Maidenform sells intimate apparel which is a core category of
Hanesbrands. The acquisition brought the former's popular brands
like Flexees, Lilyette, Self Expressions and Sweet Nothings into
the latter's already-rich portfolio. Cash flow from operation is
expected within $450 to $550 million.
For full-year 2014, Hanesbrands expects the
Innovate-to-Elevate strategy to drive the business momentum. The
strategy focuses on value-added, higher-priced and higher-margin
items that can be supplied at lower cost. The strategy has 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.
Fourth Quarter Results
On Jan 29, Hanesbrands reported fourth-quarter 2013 earnings
per share of 98 cents, down 9.2% from prior-year quarter due to
planned increases in advertising and debt-reduction costs.
However, earnings beat the Zacks Consensus Estimate of 90
cents by 8.9%. Although earnings were lower than year-ago
results, they were higher than management's guidance of a range
of 82 to 92 cents due to higher-than-expected revenues in most of
Net sales gained 12.0% and came in at $1.29 billion backed by
9 percentage point (pp) contribution by the Maidenform brand and
3 pp contribution by the rest of the segments. Sales were
slightly ahead of the Zacks Consensus Estimate of $1.25 billion
due to higher revenues in all the business segments.
Fiscal 2013 Results
For fiscal 2013, earnings per share went up 49% year over year
to $3.91 as lower cotton costs and benefits from the
Innovate-to-Elevate initiative improved profitability. Earnings
were ahead of the Zacks Consensus Estimate of $3.82 by 2.4%.
Quarterly revenues increased 2% to $4.63 billion, while on a
constant currency basis, net sales increased 3%. Sales were
slightly ahead of the Zacks Consensus Estimate of $4.61 billion
due to impressive sales in most of the business segments.
Hanesbrands sports a Zacks Rank #1 (Strong Buy). Other stocks
worth considering in the textile-apparel sector include
Joe's Jeans Inc.
Micheal Kors Holdings Ltd
Columbia Sportswear Co.
). While Joe's Jeans and Micheal Kors carry the same Zacks Rank
as Hanesbrands, Columbia Sportswear carries 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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