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2Q17 Earnings Review: HanesBrands In Line with Expectations

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Series snapshot

North Carolina–based HanesBrands (HBI) reported its 2Q17 results after the market closed on Tuesday, August 1, 2017. The company posted earnings and sales that were in line with Wall Street expectations. HBI’s earnings per share (or EPS) rose 3.9% YoY (year-over-year) to $0.53 on total sales of ~$1.6 billion (+11.8% YoY).

In this series, we’ll discuss HanesBrands’ 2Q17 performance, its stock movement, and its current valuations.

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Valuations overview

HanesBrands is currently trading at a one-year forward PE (price-to-earnings) ratio of 11.7x versus a three-year average of 15.1x. The company is trading at a discount to branded apparel peers PVH Corp. (PVH) (15.7x), Ralph Lauren (RL) (15.9x), and VF Corporation (VFC) (20.5x).

HBI stock has the best analyst ratings among its peers. It is rated 1.9 compared to 2.0 for PVH, 3.1 for RL, and 2.7 for VFC. The rating scale ranges from 1 (strong buy) to 5 (strong sell).

About HanesBrands

HanesBrands (HBI) is a global marketer of everyday apparel brands such as Hanes, Champion, Playtex, JMS/Just My Size, Wonderbra, and Gear for Sports. It sells underwear for men, women, and children, as well as shapewear, sheer hosiery, socks, sweatshirts, fleece, and activewear throughout the world.

Investors looking for exposure to HBI can consider the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 0.33% of its portfolio in HBI.

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