NEW YORK - HanesBrands Inc. (NYSE: HBI) shares gained 3% in premarket trading Thursday after the apparel maker reported better-than-expected third quarter results and raised its full-year outlook.
The Winston-Salem, North Carolina-based company posted adjusted earnings of $0.15 per share for Q3, surpassing the analyst consensus of $0.12. Revenue came in at $937.1 million, slightly above estimates of $936.47 million.
HanesBrands said net sales decreased 2.5% compared to the prior year, but were consistent with last year on an organic constant currency basis. Adjusted gross margin expanded 525 basis points to 41.8%, driven by lower input costs and benefits from cost savings initiatives.
"We delivered another strong quarter with operating profit, earnings per share, and cash flow results that exceeded our expectations," said CEO Steve Bratspies. "Our strategic actions to create a more focused, simplified business are working."
Looking ahead, HanesBrands raised its full-year 2024 guidance. The company now expects adjusted earnings per share of $0.39, up from its previous outlook and above the $0.35 consensus. Revenue is projected at $3.61 billion, also ahead of estimates.
The improved forecast reflects "year-to-date performance and strong visibility to continued margin improvement," HanesBrands said. The company also noted it is on track to pay down approximately $1 billion of debt in the second half of 2024.
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