-=Hanesbrands (HBI) reported earnings on Thur 7 Feb 2019 (b/o)

Hanesbrands beats on top and bottom lines; guides mixed Q1 and FY19 EPS near the low end, sales above consensus

• Reports Q4 (Dec) earnings of $0.48 per share, excluding items, $0.02 better than the S&P Capital IQ Consensus of $0.46; revenues of $1.768 bln vs the $1.71 bln S&P Capital IQ Consensus. U.S. Activewear segment sales +13 percent and operating profit +4 percent.
• Co sees Q1 EPS of $0.24-0.26, excluding items, vs. $0.28 S&P Capital IQ Consensus, sales $1.52-1.55 bln vs $1.488 bln consensus; FY19 EPS of $1.72-1.80, excluding items, vs. $1.80 S&P Capital IQ Consensus, sales $6.885-6.985 bln vs $6.815 bln consensus.
• Key assumptions in the guidance include: a cautious outlook for the U.S. brick-and-mortar market, including continued door closures; continued progress in U.S. Innerwear revitalization initiatives; price increases and a conservative view on elasticity; negative effects of currency exchange rates; and increased marketing investment to support brand plans. The acquisition of Bras N Things is expected to contribute $17 million to net sales prior to the acquisition's Feb. 12 anniversary date. Organic sales growth in constant currency for 2019 is expected to be ~2.5 percent. Adverse foreign currency exchange rates for the year are expected to reduce net sales as reported by approximately $60 million, primarily in the first quarter.