HANESBRANDS INC Reports Fourth Quarter Earnings Results for Fiscal Year 2022
February 7, 2023
Earnings report
HANESBRANDS INC ($NYSE:HBI) is a global leader in innerwear and outerwear apparel, offering a wide range of products for men, women and children. On February 2, 2023, the company reported earnings results for its fourth quarter of fiscal year 2022, ending December 31, 2022. Total revenue for the period was USD -418.1 million, a 796.5% decrease from the prior year. Net income for the period was USD 1473.3 million, a 15.9% decrease from the prior year. The decrease in net income is primarily due to lower sales volumes and higher costs associated with shifting production to respond to changing consumer demand.
This is largely due to the company’s focus on cost control and efficiency initiatives. HANESBRANDS INC remains committed to its strategy of driving growth and delivering strong returns for shareholders. The company is confident that its long-term growth prospects remain intact and is well positioned to capitalize on the post-pandemic recovery.
Market Price
The stock opened at $7.4 and closed at $6.3, representing a drop of 27.9% from its prior closing price of $8.7. This is a significant decrease in the company’s stock price, which could indicate that investors are not confident in the company’s financial performance. This is a significant decline in the company’s financial performance that has likely caused investors to lose confidence in the company. In addition to the significant decline in net income, HANESBRANDS INC also reported a decrease in revenue for the fourth quarter.
This decline in revenue could also be contributing to the decrease in investor confidence. Overall, HANESBRANDS INC’s fourth quarter earnings results were not positive, and the stock price dropped significantly as a result. Investors may be concerned about the company’s financial performance going forward, and it remains to be seen how HANESBRANDS INC will respond to the decline in investor confidence. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hanesbrands Inc. More…
| Total Revenues | Net Income | Net Margin |
| 6.23k | -127.2 | -2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hanesbrands Inc. More…
| Operations | Investing | Financing |
| -358.8 | -216.43 | 295.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hanesbrands Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.5k | 6.11k | 1.93 |
Key Ratios Snapshot
Some of the financial key ratios for Hanesbrands Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.6% | -16.4% | 8.2% |
| FCF Margin | ROE | ROA |
| -9.2% | 59.4% | 4.9% |
Analysis
GoodWhale has conducted an analysis of HANESBRANDS INC‘s wellbeing, and found that the company has a high health score of 8/10 with regards to its cashflows and debt, demonstrating the company’s ability to sustain future operations in times of crisis. HANESBRANDS INC is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Given its strong dividend payout, HANESBRANDS INC may be an attractive investment opportunity for value investors looking for steady, long-term returns. The company may also appeal to income investors, who are seeking a reliable source of income in the form of dividends. Furthermore, those who prioritize profits may find HANESBRANDS INC to be a profitable investment, given its strong profitability. However, the company is relatively weak in terms of asset and growth, which could be a deterrent to investors who prioritize growth potential. As such, it is important for investors to consider their individual investment goals and risk tolerance before investing in HANESBRANDS INC. Ultimately, investors should weigh the pros and cons before deciding whether or not to invest in HANESBRANDS INC. More…
Peers
Hanesbrands Inc is an American clothing company with a range of clothing products including underwear, socks, and t-shirts. The company has a range of competitors including VF Corp, Hennes & Mauritz AB, and Ralph Lauren Corp.
– VF Corp ($NYSE:VFC)
VF Corporation is an American multinational clothing and footwear company founded in 1899 and headquartered in Greensboro, North Carolina. The company’s more than 30 brands include Vans, The North Face, Timberland, and Wrangler. VF is the world’s largest apparel company and one of the largest publicly traded companies in the United States with a market capitalization of over $10 billion. The company’s return on equity is 22.53%.
VF Corporation is a diversified apparel and footwear company with a portfolio of well-known brands including Vans, The North Face, Timberland, and Wrangler. The company operates in more than 170 countries and employs over 70,000 people worldwide. VF is committed to responsible business practices and is a signatory of the United Nations Global Compact.
– Hennes & Mauritz AB ($OTCPK:HNNMY)
H&M is a leading global fashion company with around 52,000 employees. The company’s business concept is to offer fashion and quality at the best price in a sustainable way. H&M has been listed on Nasdaq Stockholm since 1974.
– Ralph Lauren Corp ($NYSE:RL)
Ralph Lauren Corp is a company that focuses on the design and production of high-quality clothing and accessories. The company has a market cap of 6.28B as of 2022 and a return on equity of 19.37%. This makes it a very attractive investment for those looking for a company with a strong financial position and a history of success.
Summary
Hanesbrands Inc. reported its fourth quarter earnings results for fiscal year 2022, ending on December 31, 2022, and the results were not positive. Total revenue decreased by 796.5% year-over-year and net income decreased by 15.9%. This was reflected in the stock price, which dropped significantly the same day of the announcement. Investing in Hanesbrands Inc. may be a risky endeavor given the current economic state of the company. It appears that the company is struggling to maintain its profitability, with the recent decrease in net income being a major red flag for potential investors. The company may need to rethink its strategies if it hopes to make a comeback in the near future. It is important to look at other factors when considering investing in Hanesbrands Inc., such as its current financial position, industry trends, and competitive landscape. Analyzing these factors can give investors a better understanding of the company’s potential for growth and profitability.
Additionally, investors should keep an eye on the company’s management team and its decision-making process. Good management practices can help ensure that the company is able to navigate through difficult times. Overall, potential investors should assess their own risk tolerance before investing in Hanesbrands Inc. In the current market environment, it is important to be mindful of the potential risks associated with investing in the company, while still keeping an eye out for potential opportunities.
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