HanesBrands falls short on restructuring goals

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HANESBRANDS($NYSE:HBI): HanesBrands Inc. is an American apparel company. The company operates in three segments: Innerwear, Outerwear, and International. The company has been undergoing a restructuring process in an effort to increase sales, improve profitability, and reduce debt.

However, it appears that this process has been falling short on all measures. The stock has fallen to attractive valuation levels, with a forward P/E of only 7.3x on management’s recently reduced 2022 guidance. Despite the challenges, HanesBrands remains a well-known and trusted brand. HanesBrands also has a diversified portfolio of products, which should help it weather the current challenges.

Price History

The company blamed the shortfall on increased costs for raw materials, transportation, and labor. HanesBrands stock opened at $8.2 on Wednesday and closed at $8.1, down by 1.0% from its last closing price. The company has struggled to restructure its business and return to profitability amid increased competition from online retailers.

VI Analysis

Hanesbrands Inc. is a leading apparel company with a strong portfolio of well-known brands. The company’s fundamentals reflect its long-term potential, and its shares are attractively priced at current levels. According to VI’s Risk Rating, Hanesbrands is a medium risk investment in terms of financial and business aspects. While the company’s financial condition is relatively strong, there are some potential risks in the business that investors should be aware of. Specifically, the company faces competitive pressures in the apparel industry, and its reliance on a small number of key customers could be a risk if these customers were to reduce their orders. Overall, Hanesbrands is a solid company with a strong foundation.

However, investors should keep an eye on the risks in the business, as they could impact the company’s long-term success.

Summary

HanesBrands to acquire Champion. However, the company has not yet achieved its goals, and its stock price has been falling as a result. This may help the company to reach its goals, but it is also possible that the acquisition will not be successful.