HanesBrands Clocks 12% Decline In Q1 Revenues On Lower Consumer Spending

HanesBrands Inc HBI reported a first-quarter FY23 sales decline of 12% year-on-year to $1.39 billion, beating the consensus of $1.36 billion. Sales slumped 10% on constant currency.
The apparel manufacturer reported an adjusted loss of $(0.06), beating the analyst consensus of (0.07).
The sales decline was due to the macro-driven slowdown in consumer spending in the U.S. and Australia, coupled with overall weakness across all segments.
Segments: Innerwear sales decreased 4% Y/Y, Activewear sales declined 19%, and International sales decreased 9%.
Adjusted gross profit was $454.22 million, down 22.3% Y/Y. Adjusted gross margin of 32.7% declined approximately 440 basis points.
The company held $213.21 million in cash and equivalents as of quarter-end.
Outlook: HanesBrands reiterated its FY23 outlook. The company expects sales of $6.05 billion - $6.20 billion versus the consensus of $6.06 billion. It sees FY23 adj. EPS of $0.31 - $0.42 versus the $0.35 estimate.
For Q2, HBI anticipates sales of $1.42 billion - $1.47 billion against the Street view of $1.47 billion. It sees an adjusted loss per share of $(0.05) to $0.00, against an estimate of $0.04.
Price Action: HBI shares are trading higher by 3.56% at $5.09 on the last check Wednesday.

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