Hanesbrands Shares Slide Post Q1 Results; Eyes Low-End Of FY22 EPS Outlook - Hanesbrands (NYSE:HBI)

Hanesbrands Inc HBI reported first-quarter FY22 sales growth of 5% year-on-year to $1.58 billion, beating the consensus of $1.54 billion.
Consumer demand for the company's brands drove growth in the U.S., Americas, and Europe.
Innerwear sales increased 1.5% Y/Y due to retail space gains, a positive mix benefit, and the partial-quarter benefit of price increases. Activewear sales rose 6.3%, and the International segment gained 0.8%.
Global Champion brand sales increased 6% over the prior year in constant currency, or 3% on a reported basis.
Gross margin contracted 290 basis points Y/Y to 37.1%. Operating margin contracted 180 basis points to 10.8%, and operating income for the quarter fell 10% to $171 million.
Inventories increased 22% Y/Y to $1.82 billion. The company held $369.2 million in cash and equivalents as of April 2, 2022.
Cash flow from operations was a use of $(231) million driven primarily by working capital needs in inventory.
Adjusted EPS of $0.34 beat the analyst consensus of $0.28.
Outlook: Hanesbrands sees Q2 FY22 sales of $1.68 billion - $1.73 billion versus the consensus of $1.79 billion. The company expects adjusted EPS of $0.32 - $0.36, versus the consensus of $0.42.
For FY22, HBI sees sales at the midpoint of its range of $7.00 billion - $7.15 billion versus the consensus of $7.02 billion.
It sees an adjusted EPS near the low-end of its guidance range of $1.64 - $1.81, compared to the consensus of $1.75.
Price Action: HBI shares are trading lower by 6.93% at $13.20 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs