Hanesbrands Inc. said its first-quarter results were hurt by supply chain challenges that hampered its Champion brand. “[P]roduct supply challenges to the U.S. market did not improve as expected in the quarter resulting in approximately $40 million of in-hand orders in the U.S. that were unfulfilled,” the company said in its Thursday earnings announcement. “Had product arrived in time, Champion sales in the U.S. would have increased at a high-teens rate.” Global Champion brand sales rose 3% for the quarter. Hanesbrands reported net income of $118.7 million, or 34 cents per share, after a loss of $263.3 million, or 75 cents per share, last year. Sales of $1.576 billion were up slightly from $1.508 billion last year. The FactSet consensus was for EPS of 28 cents and sales of $1.541 billion. For the second quarter, Hanesbrands is guiding for net sales from continuing operations of $1.68 billion to $1.73 billion, EPS in the range of 28 cents to 32 cents, and adjusted EPS in the range of 32 cents to 36 cents. The FactSet consensus is for sales of $1.771 billion and EPS of 41 cents. For the year, Hanesbrands is guiding for net sales from continuing operations of $7.0 billion to $7.15 billion, EPS in the range of $1.50 to $1.67, and adjusted EPS in the range of $1.64 to $1.81. The FactSet consensus is for full-year sales of $7.028 billion and EPS of $1.74. Hanesbrands stock slumped 7.5% in Thursday trading, and has slumped 21.5% for the year to date.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
