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Analysts’ Estimates for Hanesbrands: Q3 2018 Sales

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Wall Street projections

Wall Street analysts estimate that Hanesbrands (HBI) will report sales of $1.87 billion in the third quarter of 2018, representing 4% growth YoY (year-over-year). In the third quarter of 2017, sales increased 2.2%. Hanesbrands is scheduled to report its third-quarter results on November 1.

Strength in the Champion brand and higher consumer-directed sales are likely to drive growth, along with the acquisitions of Bras N Things and Alternative Apparel. However, a weakness in the intimate apparel business continues to be a concern. For the remainder of 2018, Hanesbrands expects organic sales to benefit from its alliance with retailers for the back-to-school season. It’s also working to improve the intimate apparel business.

For the second quarter, Hanesbrands’ sales grew 4.2% YoY to $1.72 billion. Global sales of the Champion brand increased 18%, while global consumer-directed sales rose 20%. However, second-quarter innerwear sales fell 3.4%. Organic sales increased slightly.

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Management’s outlook

For the third quarter, Hanesbrands management has projected sales of $1.85 billion–$1.9 billion. Organic sales are expected to increase 2% at its midpoint guidance on a constant currency basis.

For 2018, sales are expected to be $6.72 billion–$6.82 billion. Acquisitions are expected to contribute $180 million. However, unfavorable foreign exchange headwinds are likely to wipe out $30 million of sales in the second half of the year. Organic sales are expected to increase ~1%.

Performance/expectations for peers

VF Corporation (VFC) reported its second-quarter fiscal 2019 results on October 19. Its revenue of $3.9 billion beat analysts’ consensus estimate by 1.1%. Its revenue increased 15% YoY, driven by acquisitions and higher sales from its international and D2C (direct-to-consumer) operations.

For the third quarter of fiscal 2018, analysts expect PVH’s (PVH) sales to grow 7.5% to $2.54 billion. Strength in its Tommy Hilfiger and Calvin Klein brands is expected to drive its top-line growth. PVH is expected to announce its results sometime in November.

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