HanesBrands Revises 2016 Guidance Higher To Reflect M&A Activity

Hanesbrands Inc. HBI announced late Tuesday afternoon an update to its full year 2016 financial guidance following its acquisition of Champion Europe and Pacific Brands Limited.

Hanes previous guided its full year earnings per share to be $1.90 on revenue of $5.84 billion. The company now expects to earn $1.89 to $1.95 per share on revenue of $6.15 billion to $6.25 billion.

The company expects the acquisitions of Champion Europe and Pacific Brands to contribute approximately $800 million in net sales and around $70 million in operating profit before synergies. Meanwhile, the annualized interest expense to fund the acquisitions is expected to be $40 million.

Hanes also expects to record net cash from operations of $750 million to $850 million which is unchanged from its prior guidance. Capital expenditures for the year was guided higher to $75 million from a previous $70 million.

The revised guidance was issued in conjunction with an investor presentation scheduled for Wednesday at the Citi 2016 Retail Seminar.

"Our Sell More, Spend Less and Make Acquisitions strategy continues to create value," Hanes Chief Operating Officer Gerald W. Evans Jr. said. "The acquisitions of Champion Europe and Pacific Brands will make meaningful contributions to our ongoing success and growth, and we are looking forward to adding these operations and their strong management teams to our worldwide portfolio."