In a remarkable turnaround, Hanesbrands Inc. (NYSE:HBI) stock has soared to a 52-week high, reaching $7.59. This peak reflects a significant recovery, with the company's shares experiencing an impressive 68.25% increase over the past year. Investors have shown renewed confidence in the apparel company, as it navigates through the dynamic retail landscape, adapting to consumer demands and overcoming challenges posed by the global economic environment. The 52-week high milestone is a testament to Hanesbrands' resilience and strategic initiatives that have resonated well with the market, propelling the stock to new heights within the last year.
In other recent news, HanesBrands reported a prosperous third quarter, with results surpassing analyst estimates and prompting an increase in its full-year outlook. The company's Q3 adjusted earnings were $0.15 per share, topping the analyst consensus of $0.12, and revenue reached $937.1 million, slightly above the projected $936.47 million. Despite a 2.5% decrease in net sales compared to the prior year, the company's adjusted gross margin expanded to 41.8%, attributed to lower input costs and benefits from cost-saving initiatives.
Moving forward, HanesBrands has raised its full-year 2024 guidance, now expecting adjusted earnings per share of $0.39, an increase from its previous outlook and above the $0.35 consensus. The company also anticipates revenue of $3.61 billion, surpassing prior estimates. This improved forecast is due to a strong year-to-date performance and a clear path to continued margin improvement. HanesBrands also revealed plans to pay down approximately $1 billion of debt in the second half of 2024. These are significant recent developments for the company.
InvestingPro Insights
The recent surge in Hanesbrands Inc. (HBI) stock aligns with several key insights from InvestingPro. The company's stock has demonstrated a strong return over the last year, with InvestingPro data showing a 61% price total return over the past 12 months. This performance is further emphasized by a robust 58.13% return over the last six months, indicating sustained momentum.
InvestingPro Tips highlight that HBI is trading near its 52-week high, corroborating the article's main point. Additionally, the stock's valuation implies a strong free cash flow yield, which may be attracting investors looking for potential value opportunities in the apparel sector.
While the company faced profitability challenges in the recent past, InvestingPro Tips suggest that analysts anticipate HBI will return to profitability this year. This expectation could be a driving factor behind the stock's impressive rally.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Hanesbrands Inc., providing a deeper understanding of the company's financial health and market position.
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