HanesBrands Inc. HBI reported earnings before the market opened on Thursday and one retail strategist has flagged the report, calling it a "mess."
What Happened: HanesBrands said its second-quarter revenue decreased 14% year-over-year to $1.51 billion. The retailer's top-line results came in below average analyst estimates of $1.69 billion, according to Benzinga Pro.
HanesBrands reported quarterly earnings of 28 cents per share, which missed average analyst estimates of 33 cents per share.
"Our second quarter results fell below our expectations as a result of unexpected events and the difficult global operating environment," said Steve Bratspies, CEO of HanesBrands.
HanesBrands also issued third-quarter guidance below average analyst estimates, citing short-term costs associated with inventory reduction efforts and an assumption that slow consumer demand continues.
Why It Matters: Hedgeye's Brian McGough took to Twitter Inc TWTR Thursday morning, calling HanesBrands' report a mess after the company missed analyst estimates and cut guidance.
McGough noted that his firm is short HanesBrands and indicated that the weakness should extend to Gildan Activewear Inc GIL.
"Which likely won't trade down in sympathy, but should," he said via tweet.
Hedgeye also has a short position in Gildan. The company reported its second-quarter results on Aug.4, which came in better than expected.
HBI, GIL Price Action: At press time, HanesBrands was down 5.98% at $10.86, while Gildan was up 0.38% at $31.66, according to Benzinga Pro.
Photo: Courtesy HanesBrands
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