An image from Hanesbrands.

Hanesbrands Inc. stock dropped more than 18 percent to $25 at one point in after-hours trading after the apparel company missed fourth-quarter earnings and sales estimates, but delivered its third consecutive year of record net sales.

Hanesbrands delivered net sales of $1.4 billion for the quarter ending Jan. 2, which was shy of the FactSet estimate of $1.53 billion and a drop of 7.4 percent from last year’s $1.5 billion. Net sales for the full year increased 7.6 percent to $5.73 billion over the previous year’s $5.32 billion.

Net income for the quarter was $119 million, much better than last year’s $89 million for the same period.

Hanesbrands reported diluted earnings per share of 30 cents for the quarter, which were lower than the FactSet estimate of 46 cents. Diluted earnings per share for the full year were $1.06, a 7.1 percent increase over last year’s 99 cents. Operating profit margins increased 1.8 percent in the quarter.

“We delivered our third consecutive record year in 2015, although we are disappointed with our fourth-quarter performance,” said Hanes chief executive officer Richard A. Noll. “For 2016, I feel confident in our growth expectations and outlook for a fourth consecutive year with a double-digit increase in adjusted EPS.”

Hanesbrands said retail traffic declined by high-single digits in November and the first three weeks of December due to the warm weather. That weighed on point-of-sale trends and caused retailers to pull back on orders. Hanes said the traffic was down across the board from department stores to mass retailers. This impacted replenishment shipments. Traffic finally improved in the latter part of December, but it was too late to influence the fourth quarter shipments.

Hanesbrands said on the conference call that in order to get inventory levels corrected, it will take a pause in manufacturing.

Looking ahead to full-year 2016, Hanesbrands is forecasting net sales of $5.8 billion to $5.9 billion, which would be growth of 1 to 3 percent. This guidance includes share repurchases similar to 2015 when the company spent $352 million to buy 12 million shares. Guidance for adjusted earnings per share is for a range of $1.85 to $1.91 or expected growth of 11 percent to 15 percent.

The company plans on making additional acquisitions in the next year, which will fuel the growth goals. The company noted that the acquisitions it has made were working well including Maidenform, DBApparel and Knights Apparel.

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