Stock Track | Hanesbrands Soars 6.75% Pre-market on Strong Q1 Earnings Beat and Positive Outlook

Stock Track
08 May

Hanesbrands (NYSE: HBI) stock is surging 6.75% in pre-market trading on Thursday, following the release of its impressive first-quarter 2025 financial results. The apparel manufacturer significantly outperformed analysts' expectations, demonstrating resilience in a challenging economic environment.

The company reported adjusted earnings per share of $0.07, surpassing the FactSet consensus estimate of $0.02 by a remarkable 250%. This represents a substantial improvement from the $0.02 loss per share recorded in the same period last year. Quarterly sales reached $760.15 million, beating the analyst consensus estimate of $752.34 million by 1.04%, although this figure represents a 34.24% decrease compared to the previous year's $1.16 billion.

Hanesbrands' strong performance extends beyond its top and bottom lines. The company achieved a gross margin of 41.7% and an adjusted operating margin of 10.7%, with adjusted operating profit reaching $81 million, significantly exceeding the IBES estimate of $67.9 million. Looking ahead, Hanesbrands expressed confidence in its ability to mitigate cost headwinds through further cost reductions and pricing actions. The company also provided an optimistic outlook for the second quarter, projecting adjusted earnings per share of about $0.18 and net sales of approximately $970 million. Furthermore, Hanesbrands reiterated its full-year 2025 guidance, which includes expected impacts from U.S. tariffs, signaling its ability to navigate potential challenges in the market.

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