HanesBrands Announces Strong Fourth-Quarter and Full-Year 2021 Results Driven by Full Potential Growth Plan; Raises 2024 Full Potential Financial Targets; Announces $600 Million Share Repurchase Authorization

  • Net sales from continuing operations of $1.75 billion, up 4% over fourth-quarter 2020; up 9% on a constant currency basis excluding PPE and 53rd week sales in 2020
  • Net sales from continuing operations up 15% over fourth-quarter 2019
  • GAAP EPS from continuing operations of $0.19; adjusted EPS from continuing operations of $0.44, inclusive of $0.02 per share impact from higher-than-expected tax rate
  • Global Champion brand sales increase 10% over prior year and 25% over fourth- quarter 2019
  • U.S. Innerwear sales increase 3% over prior year, excluding PPE, and 19% over fourth-quarter 2019
  • Provides first-quarter and full-year 2022 guidance. Expects full-year sales from continuing operations of $7.0 billion to $7.15 billion; GAAP EPS from continuing operations of $1.50 to $1.67; adjusted EPS from continuing operations of $1.64 to $1.81
  • Raises 2024 Full Potential financial targets to approximately $8 billion of revenue, an adjusted operating margin of approximately 14.4%, and cumulative three-year free cash flow of approximately $1.6 billion
  • Board of Directors authorizes a three-year $600 million share repurchase plan; Company to begin repurchasing shares in first-quarter 2022
  • Declares regular quarterly cash dividend of $0.15 per share
  • For reconciliations of select GAAP and Non-GAAP measures, see Table 6 of this release
  • Unless otherwise noted, all 2019 comparisons are rebased, see Table 6 of this release

HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for the fourth quarter and full-year of 2021, with increased sales and better-than-expected profitability driven by continued growth in consumer demand and market share gains in its innerwear and activewear businesses.

“We are rapidly creating a new HanesBrands, focused on growth and serving our consumers and customers like never before,” said Steve Bratspies, chief executive officer. “We significantly outperformed our expectations in 2021, driving increased financial projections in our three-year Full Potential growth plan. As we enter 2022, our performance, operational execution and financial foundation are far stronger than they were before the pandemic. We are implementing a three-year $600 million stock repurchase program, based on our confidence in future growth. Most importantly, I want to thank our outstanding global associates as they continue to meet every challenge to serve our consumers.”

Highlights include:

  • Exited 2021 with a stronger business and financial foundation as well as a more attractive long-term growth profile relative to its pre-pandemic position. The Company delivered meaningful growth above pre-pandemic levels with full-year 2021 net sales 13% above 2019, adjusted operating profit 14% higher than 2019 and adjusted earnings per share 26% above 2019. The balance sheet also strengthened with leverage declining to 2.7 times on a net debt-to-adjusted EBITDA basis.
  • Raised its 2024 Full Potential financial targets driven by increased consumer demand for its brands globally, the traction of its Full Potential growth strategy and the proven ability of the global team to execute and consistently deliver results, particularly in one of the most challenging macro environments in decades. The Company increased its 2024 revenue target to approximately $8 billion, which includes an increase in global Champion brand sales to approximately $3.2 billion; adjusted operating margin increased to approximately 14.4%; and cumulative three-year free cash flow increased to approximately $1.6 billion. See Full Potential Update below for a comparison to prior targets.
  • Increased capital returns to shareholders. In addition to its regular quarterly cash dividend, the Company announced that its Board of Directors authorized a three-year $600 million share repurchase plan. Based on its Full Potential plan targets, the Company expects to repurchase shares quarterly while maintaining flexibility to be opportunistic dependent upon market conditions. Share repurchases are expected to begin in the first quarter 2022.
  • Consumer demand for the Company’s brands remains strong and continues to exceed supply due to ongoing disruptions in the global transportation environment. Fourth-quarter revenue was in-line and adjusted operating margin exceeded the Company’s guidance range as it continued to execute its Full Potential plan, generate returns on its growth-related investments and effectively manage the items that are within its control.
  • Global Champion brand sales increased 25% and 20% compared to fourth-quarter and full-year 2019, respectively. The continued growth above pre-pandemic levels is driven by strong consumer demand across channels in the U.S., continued growth in Europe, the Americas and Australia as well as the ramp-up of partners in China.
  • U.S. Innerwear sales increased 19% and 21% compared to the fourth-quarter and full-year 2019, respectively. For the full-year 2021, Innerwear’s market share increased approximately 150 basis points over 2019 with increased share positions in Men’s, Women’s, Kids and Socks.
  • Continued execution of the Company’s Full Potential growth plan, including investment in its iconic brands and the simplification of its business portfolio. As compared to 2019, global media and marketing investment increased nearly $30 million for the quarter and $70 million for the full-year, helping drive higher point-of-sale trends and increased market share. The Company made the decision to sell its U.S. Sheer Hosiery business, another milestone in its initiative to focus its portfolio on areas with the greatest potential for growth and returns.

Fourth-Quarter 2021 Results

Net sales from continuing operations for the fourth quarter ended January 1, 2022 totaled $1.75 billion, an increase of $63 million, or 4%, including 10% growth in Champion brand sales globally. Excluding $28 million in sales of personal protective equipment (“PPE”) and $45 million of sales from a 53rd week in the prior period, and a $9 million headwind from exchange rates in the current period, net sales increased $146 million, or 9%, over prior year.

The year-over-year growth in net sales was driven by strong consumer demand and point-of-sale trends in the U.S., Europe, Americas and certain Asia markets, including China, which more than offset lingering COVID-related headwinds in Australia and Japan. Total constant currency fourth-quarter net sales increased 4%.

Due to the significant impact of the pandemic on prior year results, this release includes certain comparisons to the comparable 2019 periods for additional context. All 2019 results are rebased to reflect the European Innerwear business as discontinued operations as well as the exit of the C9 Champion mass program and the DKNY intimate apparel license.

Compared to fourth-quarter 2019, net sales from continuing operations increased $230 million, or 15%, including 25% growth in Champion brand sales globally. Total constant currency net sales increased 14%. Growth in the global innerwear and activewear businesses was driven by strong consumer demand, higher point-of-sale performance and market share gains.

For the fourth-quarter 2021, GAAP gross margin of 38.1% increased 3,220 basis points compared to prior year and decreased 120 basis points compared to fourth-quarter 2019.

Adjusted gross margin of 38.4% decreased 195 basis points compared to last year and approximately 235 basis points compared to fourth-quarter 2019. The margin decline was driven primarily by increased expedite costs. The Company gained significant new retail space and made the strategic decision to expedite additional product to ensure arrival in time for space sets at retail partners. Efficiency improvements in manufacturing, cost savings from initiatives such as its SKU reduction program and the benefits of business mix offset the vast majority of the inflation and transportation cost headwinds in the fourth quarter.

Fourth-quarter GAAP operating profit was $156 million compared to an operating loss of $397 million in the prior year and operating profit of $230 million in the fourth-quarter 2019. GAAP operating margin of 8.9% improved from the (23.5%) loss in the prior year and declined from 14.3% in the fourth-quarter 2019.

Adjusted operating profit of $220 million decreased $9 million, or 4%, compared to prior year and $8 million, or 3% compared to 2019. Adjusted operating margin of 12.6% was ahead of the Company’s expectation. Adjusted operating margin declined approximately 100 basis points compared to last year and 240 basis points compared to fourth-quarter 2019. The decline was driven by the gross margin performance as disciplined SG&A expense management essentially offset the impact from increased brand marketing investments and higher labor costs in its distribution centers.

The GAAP and adjusted effective tax rates for the fourth quarter were 6.8% and 15.0%, respectively. For the fourth-quarter of 2020, GAAP and adjusted effective tax rates were 34.4% and 17.6%, respectively. For the fourth-quarter of 2019, GAAP and adjusted effective tax rates were 12.9% and 21.3%, respectively.

On a GAAP basis, fourth-quarter income from continuing operations totaled $68 million, or $0.19 per diluted share. This compares to a loss from continuing operations of $292 million, or ($0.83) per diluted share in the prior year period, and income from continuing operations of $159 million, or $0.43 per diluted share in fourth-quarter 2019.

Adjusted income from continuing operations totaled $156 million, or $0.44 per diluted share and includes a $0.02 per share impact from a higher-than-expected tax rate. This compares to adjusted income from continuing operations of $148 million, or $0.42 per diluted share, in the prior year period and adjusted income from continuing operations of $142 million, or $0.39 per diluted share, in fourth-quarter 2019.

(See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include pandemic-related and Full Potential plan charges.)

Fourth-Quarter 2021 Business Segment Summaries

Innerwear: Sales increased 3% over last year, excluding PPE, driven by point-of-sale growth across channels. Prior year sales included significant post-COVID inventory restocking by retailers and $22 million of PPE sales.

As compared to fourth-quarter 2019, sales increased $108 million, or 19%, with double-digit growth in the Kids, Socks, Women’s and Men’s businesses. Relative to 2019, the Company’s U.S. innerwear market share increased approximately 150 basis points with increased share positions in Men’s, Women’s, Kids and Socks.

Operating margin of 16.9% decreased more than 700 basis points compared to prior year and fourth-quarter 2019. The decline was due to the expected impact from higher inflation and costs associated with the strategic decision to expedite additional product to service new retail space gains as well as increased investments in brand marketing, all of which impacted the business ahead of Innerwear’s first-quarter 2022 price increase.

Activewear: Sales grew $46 million, or 11% over prior year driven by strong point-of-sale trends across its activewear brands. Sales increased $73 million, or 19%, compared to fourth-quarter 2019. By brand, Champion sales increased 21% and sales of its other active brands increased high teens as compared to 2019. The Company experienced strong point-of-sale trends across the online, wholesale and distributor channels in the quarter. Sales in the college bookstore channel returned to pre-pandemic levels and were consistent with the fourth-quarter 2019.

Segment operating margin of 13.0 % increased 420 basis points over prior period driven by benefits from business mix, price increases in printwear and disciplined SG&A expense management. These benefits more than offset higher levels of inflation and increased investments in brand marketing. Operating margin decreased 100 basis points compared to fourth-quarter 2019 as higher levels of inflation and increased brand marketing investments more than offset leverage from higher sales volume and benefits from business mix.

International: Sales increased $19 million, or 4%, compared to prior year. Excluding $6 million of PPE sales in the prior year quarter, fourth-quarter sales increased 5% on a reported basis and 7% on a constant currency basis. Constant currency sales grew in the Americas, Europe and China driven by strong consumer demand for the Company’s brands. Constant currency sales declined in Japan and Australia as both regions continued to be impacted by store closures and tentative consumer behavior resulting from the ongoing COVID pandemic.

As compared to fourth-quarter 2019, International segment revenue increased $49 million, or 10%. On a constant currency basis, sales increased 7% with strong growth in Europe, the Americas, Australia and China more than offsetting the impact from COVID-related headwinds in Japan.

For the quarter, the International segment’s operating margin of 19.1% increased 140 basis points over prior year. Operating margin increased 190 basis points compared to fourth-quarter 2019 driven by fixed-cost leverage from higher sales, benefits from business mix and disciplined SG&A expense management.

Cash Flow, Balance Sheet and Shareholder Capital Returns

As of the end of fiscal year 2021, the Company had a total liquidity position of $1.75 billion, consisting of $536 million of cash and equivalents and approximately $1.2 billion of available capacity under its credit facilities.

Leverage at the end of fiscal year 2021 declined to 2.7 times on a net debt-to-adjusted EBITDA basis as compared to 3.5 times at the end of fiscal year 2020 and 2.9 times at the end of fiscal year 2019.

Inventory at the end of fiscal year 2021 was $1.6 billion, an increase of 16% over prior year due to the combination of higher levels of in-transits and the strategic decision to invest in inventory in the quarter to capture increased consumer demand. As compared to 2019, inventory from continuing operations declined 8%. In the fourth-quarter 2020, the Company announced a 20% SKU reduction initiative to focus on its highest-volume, fastest-growing and most profitable products. At the end of fiscal year 2021, the Company had reduced its SKUs by more than 30% as compared to prior year.

The Company generated $623 million of Cash From Operations in fiscal year 2021, which exceeded its guidance range. The stronger-than-expected cash generation, despite the strategic decision to increase investment in inventory to support higher levels of consumer demand, was driven by better-than-expected profitability and disciplined working capital management.

The Company’s Board of Directors declared a regular quarterly cash dividend of $0.15 per share payable on March 8, 2022, to shareholders of record at the close of business on February 15, 2022.

The Company’s Board of Directors approved a three-year share repurchase program. The program authorizes the repurchase of up to $600 million of the Company’s outstanding common stock through open market or privately negotiated transactions through December 28, 2024. The timing and amount of repurchases will be determined by the Company’s management based on its performance, evaluation of market conditions, legal requirements and other factors. The program may be suspended, modified or terminated at any time without prior notice. This share repurchase program replaces the previous program announced in February 2020.

Based on its Full Potential plan targets, the Company expects to repurchase shares quarterly while maintaining flexibility to be opportunistic dependent upon performance and market conditions. Share repurchases are expected to begin in the first quarter 2022.

Full Potential Update: 2024 Financial Targets Increased; Announces Plan to Sell U.S. Sheer Hosiery Business

“I am very encouraged by the fast start to our Full Potential growth plan, despite the extremely challenging operating environment,” Bratspies said. “Our strong early execution in growing global Champion, re-igniting innerwear growth, driving consumer centricity and focusing our portfolio gives me confidence in what we can achieve over the next three years.”

The Company exceeded its initial full-year 2021 outlook provided at its May 2021 Investor Day, despite greater-than-expected headwinds from inflation and global logistics challenges. Sales exceeded the midpoint of its prior range by approximately $550 million, adjusted operating profit was approximately $100 million higher, adjusted earnings per share were approximately $0.30 higher and operating cash flow was approximately $100 million higher.

The Company raised its 2024 Full Potential financial targets as a result of increased consumer demand for its brands globally, the traction of its Full Potential growth strategy and the proven ability of the global team to execute and consistently deliver results, particularly in one of the most challenging macro environments in decades.

2024 Financial Targets

  • Approximately $8 billion of sales, an increase from the prior goal of approximately $7.4 billion
  • Approximately $3.2 billion of global Champion brand sales, an increase from the prior goal of approximately $3.0 billion
  • Approximately $1.15 billion of adjusted operating profit, an increase from the prior goal of approximately $1.05 billion
  • Adjusted operating margin of approximately 14.4%, an increase from the prior goal of nearly 14.3%
  • Approximately $1.6 billion of cumulative three-year free cash flow, an increase from the prior goal of approximately $1.5 billion

In addition, the Company announced it reached another milestone in its Full Potential initiative to focus its portfolio in areas with the greatest potential for growth and returns. As part of this initiative, the Company announced its intention to sell its U.S. Sheer Hosiery business. As a result, the Company recorded a non-cash impairment charge in the fourth quarter of approximately $38 million to reflect the net asset write down. The assets and liabilities of the U.S. Sheer Hosiery business are reflected in ‘held for sale’ on the balance sheet as of January 1, 2022. The Company expects the business to generate approximately $60 million of sales and essentially zero operating profit in 2022, which is reflected in the Company’s current 2022 guidance estimates.

First Quarter and Full-Year 2022 Financial Outlook

For first-quarter 2022, which ends on April 2, 2022, the Company currently expects:

  • Net sales from continuing operations of approximately $1.51 billion to $1.57 billion, which includes a projected headwind of approximately $35 million from changes in foreign currency exchange rates. At the midpoint, this represents approximately 2% growth over prior year on a reported basis and 4% growth on a constant currency basis.
  • GAAP operating profit from continuing operations to range from approximately $120 million to $150 million.
  • Adjusted operating profit from continuing operations to range from approximately $135 million to $165 million and includes a projected headwind of approximately $5 million from changes in foreign currency exchange rates. The midpoint of adjusted operating profit represents an operating margin of 9.7%.
  • Charges for actions related to Full Potential of approximately $15 million.
  • Interest and other expenses of approximately $35 million.
  • An effective tax rate of approximately 17% on both a GAAP and adjusted basis.
  • GAAP earnings per share from continuing operations to range from approximately $0.20 to $0.27.
  • Adjusted earnings per share from continuing operations to range from approximately $0.24 to $0.31.
  • Fully diluted shares outstanding of approximately 353 million.
  • Earnings per share and fully diluted share count guidance exclude any potential impact from share repurchases.

For fiscal-year 2022, which ends on December 31, 2022, the Company currently expects:

  • Net sales from continuing operations of approximately $7.0 billion to $7.15 billion, which includes a projected headwind of approximately $100 million from changes in foreign currency exchange rates. At the midpoint, this represents approximately 4% growth over prior year on a reported basis and 5.5% growth on a constant currency basis.
  • GAAP operating profit from continuing operations to range from approximately $780 million to $850 million.
  • Adjusted operating profit from continuing operations to range from approximately $840 million to $910 million, which includes a projected headwind of approximately $14 million from changes in foreign currency exchange rates. The midpoint of adjusted operating profit guidance range represents an operating margin of 12.4%.
  • Charges for actions related to Full Potential of approximately $60 million.
  • Interest and other expenses of approximately $142 million.
  • An effective tax rate of approximately 17% on both a GAAP and adjusted basis.
  • GAAP earnings per share from continuing operations to range from approximately $1.50 to $1.67.
  • Adjusted earnings per share from continuing operations to range from approximately $1.64 to $1.81.
  • Cash flow from operations of approximately $500 million to $550 million.
  • Capital expenditures of approximately $150 million to $175 million.
  • Fully diluted shares outstanding of approximately 353 million.
  • Earnings per share and fully diluted share count guidance exclude any potential impact from share repurchases.

HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.

Note on Adjusted Measures and Reconciliation to GAAP Measures

To supplement financial results prepared in accordance with generally accepted accounting principles, the Company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted EPS from continuing operations, adjusted income from continuing operations, adjusted income tax expense, adjusted income from continuing operations before income tax expense, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), adjusted other expenses, EBITDA and adjusted EBITDA.

Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income from continuing operations is defined as income from continuing operations excluding actions and the tax effect on actions. Adjusted income tax expense is defined as income tax expense excluding actions. Adjusted income from continuing operations before income tax is defined as income from continuing operations before income tax excluding actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted SG&A is defined as selling, general and administrative expenses excluding actions. Adjusted gross profit is defined as gross profit excluding actions. Adjusted other expenses is defined as other expenses excluding actions.

Charges for actions taken in 2021 include professional fees, operating model charges, loss on classification of assets held for sale, supply chain segmentation charges, technology charges and intangible asset impairment charges related to our Full Potential plan and early extinguishment and refinancing of debt.

Charges for actions taken in 2020 include supply chain restructuring actions, program exit costs, COVID- 19 related charges, Full Potential plan charges and the write-off of a discrete tax asset related to our Bras N Things acquisition. COVID-19 related charges include intangible asset and goodwill impairment charges, bad debt expense and supply chain re-startup costs. Full Potential plan charges for 2020 include inventory write-down charges related to our SKU reduction initiative and discontinuation of our PPE business.

Charges for actions taken in 2019 primarily represented supply chain network changes, program exit costs, and overhead reduction as well as completion of outstanding acquisition integration.

While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.

HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of the Full Potential plan and other actions, as well as the COVID-19 pandemic. HanesBrands believes these non‐GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the Company’s ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken.

The Company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding actions and stock compensation expense. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.

In addition, the Company has chosen to present certain year-over-year comparisons with respect to the Company’s rebased 2019 business, which excludes the exited C9 Champion mass program and DKNY intimate apparel license. HanesBrands believes this information is useful to management and investors to facilitate a more meaningful comparison of the results of the Company’s ongoing business.

HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company’s reported operating results, HanesBrands also presents constant- currency financial information, which is a non‐GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant-currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation.

To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

HanesBrands believes constant-currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the Company’s businesses.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non‐GAAP measures presented may be different from non‐GAAP measures with similar or identical names presented by other companies.

Reconciliations of these non‐GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains certain forward-looking statements, as defined under U.S. federal securities laws, with respect to our long-term goals and trends associated with our business, as well as guidance as to future performance. In particular, among others, guidance and predictions regarding expected operating results, including related to our Full Potential plan; statements made in the First Quarter and Full-year 2022 Financial Outlook section of this news release; and statements regarding the sale of our U.S. Hosiery business, are forward-looking statements. These forward-looking statements are based on our current intent, beliefs, plans and expectations. Readers are cautioned not to place any undue reliance on any forward-looking statements. Forward-looking statements necessarily involve risks and uncertainties, many of which are outside of our control, that could cause actual results to differ materially from such statements and from our historical results and experience. These risks and uncertainties include such things as: our ability to successfully execute our Full Potential plan to achieve the desired results; the potential effects of the COVID-19 pandemic, including on consumer spending, global supply chains and the financial markets; the highly competitive and evolving nature of the industry in which we compete; the rapidly changing retail environment; our reliance on a relatively small number of customers for a significant portion of our sales; any inadequacy, interruption, integration failure or security failure with respect to our information technology; the impact of significant fluctuations and volatility in various input costs, such as cotton and oil-related materials, utilities, freight and wages; our ability to attract and retain a senior management team with the core competencies needed to support growth in global markets; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations; our ability to effectively manage our complex multinational tax structure; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and HanesBrands undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.

HanesBrands

HanesBrands (NYSE: HBI) makes everyday apparel that is known and loved by consumers around the world for comfort, quality and value. Among the Company’s iconic brands are Hans, the leading basic apparel brand in the United States; Champion, an innovator at the intersection of lifestyle and athletic apparel; and Bonds, which is setting new standards for design and sustainability. HBI employs 61,000 associates in 47 countries and has built a strong reputation for workplace quality and ethical business practices. The Company, a longtime leader in sustainability, launched aggressive 2030 goals to improve the lives of people, protect the planet and produce sustainable products. HBI is building on its unmatched strengths to unlock its #FullPotential and deliver long-term growth that benefits all of its stakeholders.

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TABLE 1

HANESBRANDS INC.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

Years Ended

 

 

 

January 1,

2022

 

January 2,

2021

 

% Change

 

January 1,

2022

 

January 2,

2021

 

% Change

Net sales

$

1,752,349

 

 

$

1,689,145

 

 

3.7

%

 

$

6,801,240

 

 

$

6,127,161

 

 

11.0

%

Cost of sales

 

1,084,621

 

 

 

1,589,946

 

 

 

 

 

4,149,541

 

 

 

4,524,461

 

 

 

Gross profit

 

667,728

 

 

 

99,199

 

 

573.1

%

 

 

2,651,699

 

 

 

1,602,700

 

 

65.5

%

As a % of net sales

 

38.1

%

 

 

5.9

%

 

 

 

 

39.0

%

 

 

26.2

%

 

 

Selling, general and administrative expenses

 

512,162

 

 

 

495,706

 

 

 

 

 

1,853,971

 

 

 

1,560,034

 

 

 

As a % of net sales

 

29.2

%

 

 

29.3

%

 

 

 

 

27.3

%

 

 

25.5

%

 

 

Operating profit (loss)

 

155,566

 

 

 

(396,507

)

 

(139.2

) %

 

 

797,728

 

 

 

42,666

 

 

1,769.7

%

As a % of net sales

 

8.9

%

 

 

(23.5

) %

 

 

 

 

11.7

%

 

 

0.7

%

 

 

Other expenses

 

47,359

 

 

 

5,003

 

 

 

 

 

53,586

 

 

 

20,655

 

 

 

Interest expense, net

 

35,307

 

 

 

43,636

 

 

 

 

 

163,067

 

 

 

164,238

 

 

 

Income (loss) from continuing operations before income tax expense

 

72,900

 

 

 

(445,146

)

 

 

 

 

581,075

 

 

 

(142,227

)

 

 

Income tax expense (benefit)

 

4,946

 

 

 

(152,948

)

 

 

 

 

60,107

 

 

 

(109,940

)

 

 

Income (loss) from continuing operations

 

67,954

 

 

 

(292,198

)

 

(123.3

) %

 

 

520,968

 

 

 

(32,287

)

 

(1,713.6

) %

Loss from discontinued operations, net of tax

 

(7,921

)

 

 

(39,966

)

 

 

 

 

(443,744

)

 

 

(43,292

)

 

 

Net income (loss)

$

60,033

 

 

$

(332,164

)

 

 

 

$

77,224

 

 

$

(75,579

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic:

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.19

 

 

$

(0.83

)

 

 

 

$

1.48

 

 

$

(0.09

)

 

 

Discontinued operations

 

(0.02

)

 

 

(0.11

)

 

 

 

 

(1.26

)

 

 

(0.12

)

 

 

Net income (loss)

$

0.17

 

 

$

(0.95

)

 

 

 

$

0.22

 

 

$

(0.21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.19

 

 

$

(0.83

)

 

 

 

$

1.48

 

 

$

(0.09

)

 

 

Discontinued operations

 

(0.02

)

 

 

(0.11

)

 

 

 

 

(1.26

)

 

 

(0.12

)

 

 

Net income (loss)

$

0.17

 

 

$

(0.95

)

 

 

 

$

0.22

 

 

$

(0.21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

351,052

 

 

 

350,807

 

 

 

 

 

351,028

 

 

 

352,766

 

 

 

Diluted

 

352,323

 

 

 

350,807

 

 

 

 

 

352,078

 

 

 

352,766

 

 

 

TABLE 2-A

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

 
 

 

Quarter Ended January 1, 2022

 

 

 

 

 

 

 

As Reported

 

Impact from

Foreign

Currency1

 

Constant

Currency

 

Quarter

Ended

January 2,

2021

 

% Change,

As Reported

 

% Change,

Constant

Currency

As reported under GAAP:

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,752,349

 

$

(9,455

)

 

$

1,761,804

 

$

1,689,145

 

 

3.7

%

 

4.3

%

Gross profit

 

667,728

 

 

(4,573

)

 

 

672,301

 

 

99,199

 

 

573.1

 

 

577.7

 

Operating profit (loss)

 

155,566

 

 

(1,343

)

 

 

156,909

 

 

(396,507

)

 

(139.2

)

 

(139.6

)

Diluted earnings (loss) per share from continuing operations

$

0.19

 

$

0.00

 

 

$

0.20

 

$

(0.83

)

 

(122.9

) %

 

(124.1

) %

 

 

 

 

 

 

 

 

 

 

 

 

As adjusted:2

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,752,349

 

$

(9,455

)

 

$

1,761,804

 

$

1,689,145

 

 

3.7

%

 

4.3

%

Gross profit

 

673,227

 

 

(4,573

)

 

 

677,800

 

 

681,989

 

 

(1.3

)

 

(0.6

)

Operating profit

 

220,123

 

 

(1,343

)

 

 

221,466

 

 

228,829

 

 

(3.8

)

 

(3.2

)

Diluted earnings per share from continuing operations

$

0.44

 

$

0.00

 

 

$

0.45

 

$

0.42

 

 

4.8

%

 

7.1

%

 

Year Ended January 1, 2022

 

 

 

 

 

 

 

As Reported

 

Impact from

Foreign

Currency1

 

Constant

Currency

 

Year Ended

January 2,

2021

 

% Change,

As Reported

 

% Change,

Constant

Currency

As reported under GAAP:

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

6,801,240

 

$

92,762

 

$

6,708,478

 

$

6,127,161

 

 

11.0

%

 

9.5

%

Gross profit

 

2,651,699

 

 

51,011

 

 

2,600,688

 

 

1,602,700

 

 

65.5

 

 

62.3

 

Operating profit

 

797,728

 

 

15,885

 

 

781,843

 

 

42,666

 

 

1,769.7

 

 

1,732.5

 

Diluted earnings (loss) per share from continuing operations

$

1.48

 

$

0.04

 

$

1.44

 

$

(0.09

)

 

(1,744.4

) %

 

(1,700.0

) %

 

 

 

 

 

 

 

 

 

 

 

 

As adjusted:2

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

6,801,240

 

$

92,762

 

$

6,708,478

 

$

6,127,161

 

 

11.0

%

 

9.5

%

Gross profit

 

2,661,797

 

 

51,011

 

 

2,610,786

 

 

2,273,318

 

 

17.1

 

 

14.8

 

Operating profit

 

929,438

 

 

15,885

 

 

913,553

 

 

776,862

 

 

19.6

 

 

17.6

 

Diluted earnings per share from continuing operations

$

1.83

 

$

0.04

 

$

1.79

 

$

1.40

 

 

30.7

%

 

27.9

%

1

Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.

2

Results for the quarters and years ended January 1, 2022 and January 2, 2021 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

TABLE 2-B

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended January 1, 2022

 

 

 

 

 

 

 

As Reported

 

Impact from

Foreign

Currency1

 

Constant

Currency

 

Quarter

Ended

December 28,

2019

 

% Change,

As Reported

 

% Change,

Constant

Currency

As reported under GAAP:

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,752,349

 

$

13,004

 

$

1,739,345

 

$

1,610,012

 

8.8

%

 

8.0

%

Gross profit

 

667,728

 

 

8,052

 

 

659,676

 

 

633,129

 

5.5

 

 

4.2

 

Operating profit

 

155,566

 

 

3,001

 

 

152,565

 

 

230,006

 

(32.4

)

 

(33.7

)

Diluted earnings per share from continuing operations

$

0.19

 

$

0.01

 

$

0.18

 

$

0.43

 

(55.8

) %

 

(58.1

) %

 

 

 

 

 

 

 

 

 

 

 

 

As adjusted:2

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,752,349

 

$

13,004

 

$

1,739,345

 

$

1,522,077

 

15.1

%

 

14.3

%

Gross profit

 

673,227

 

 

8,052

 

 

665,175

 

 

620,853

 

8.4

 

 

7.1

 

Operating profit

 

220,123

 

 

3,001

 

 

217,122

 

 

227,866

 

(3.4

)

 

(4.7

)

Diluted earnings per share from continuing operations

$

0.44

 

$

0.01

 

$

0.43

 

$

0.39

 

12.8

%

 

10.3

%

 

Year Ended January 1, 2022

 

 

 

 

 

 

 

As Reported

 

Impact from

Foreign

Currency1

 

Constant

Currency

 

Year Ended

December 28,

2019

 

% Change,

As Reported

 

% Change,

Constant

Currency

As reported under GAAP:

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

6,801,240

 

$

77,897

 

$

6,723,343

 

$

6,425,716

 

5.8

%

 

4.6

%

Gross profit

 

2,651,699

 

 

44,020

 

 

2,607,679

 

 

2,428,702

 

9.2

 

 

7.4

 

Operating profit

 

797,728

 

 

13,800

 

 

783,928

 

 

850,685

 

(6.2

)

 

(7.8

)

Diluted earnings per share from continuing operations

$

1.48

 

$

0.04

 

$

1.44

 

$

1.57

 

(5.7

) %

 

(8.3

) %

 

 

 

 

 

 

 

 

 

 

 

 

As adjusted:2

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

6,801,240

 

$

77,897

 

$

6,723,343

 

$

6,006,269

 

13.2

%

 

11.9

%

Gross profit

 

2,661,797

 

 

44,020

 

 

2,617,777

 

 

2,354,289

 

13.1

 

 

11.2

 

Operating profit

 

929,438

 

 

13,800

 

 

915,638

 

 

818,341

 

13.6

 

 

11.9

 

Diluted earnings per share from continuing operations

$

1.83

 

$

0.03

 

$

1.80

 

$

1.45

 

26.2

%

 

24.1

%

1

Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.

2

Results for the quarters and years ended January 1, 2022 and December 28, 2019 reflect adjustments for restructuring and other action-related charges. Results for the quarter and year ended December 28, 2019 also reflect adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

TABLE 3-A

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

Years Ended

 

 

 

January 1,

2022

 

January 2,

2021

 

% Change

 

January 1,

2022

 

January 2,

2021

 

% Change

Segment net sales:

 

 

 

 

 

 

 

 

 

 

 

Innerwear1

$

666,086

 

 

$

668,193

 

 

(0.3

) %

 

$

2,719,788

 

 

$

2,978,009

 

 

(8.7

) %

Activewear

 

448,948

 

 

 

403,113

 

 

11.4

 

 

 

1,679,639

 

 

 

1,184,413

 

 

41.8

 

International2

 

544,582

 

 

 

525,714

 

 

3.6

 

 

 

2,066,249

 

 

 

1,711,432

 

 

20.7

 

Other

 

92,733

 

 

 

92,125

 

 

0.7

 

 

 

335,564

 

 

 

253,307

 

 

32.5

 

Total net sales

$

1,752,349

 

 

$

1,689,145

 

 

3.7

%

 

$

6,801,240

 

 

$

6,127,161

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit:

 

 

 

 

 

 

 

 

 

 

 

Innerwear

$

112,615

 

 

$

160,848

 

 

(30.0

) %

 

$

573,852

 

 

$

718,923

 

 

(20.2

) %

Activewear

 

58,587

 

 

 

35,718

 

 

64.0

 

 

 

236,400

 

 

 

67,643

 

 

249.5

 

International

 

103,866

 

 

 

92,782

 

 

11.9

 

 

 

339,317

 

 

 

249,718

 

 

35.9

 

Other

 

8,528

 

 

 

2,123

 

 

301.7

 

 

 

30,922

 

 

 

(10,140

)

 

(405.0

)

General corporate expenses/other

 

(63,473

)

 

 

(62,642

)

 

1.3

 

 

 

(251,053

)

 

 

(249,282

)

 

0.7

 

Total operating profit before restructuring and other action-related charges

 

220,123

 

 

 

228,829

 

 

(3.8

)

 

 

929,438

 

 

 

776,862

 

 

19.6

 

Restructuring and other action-related charges

 

(64,557

)

 

 

(625,336

)

 

(89.7

)

 

 

(131,710

)

 

 

(734,196

)

 

(82.1

)

Total operating profit (loss)

$

155,566

 

 

$

(396,507

)

 

(139.2

) %

 

$

797,728

 

 

$

42,666

 

 

1,769.7

%

1

The Innerwear segment includes $22 million and $801 million of net sales of PPE in the quarter and year ended January 2, 2021, respectively.

2

The International segment includes $6 million and $19 million of net sales of PPE in the quarter and year ended January 2, 2021, respectively.

 

Quarters Ended

 

 

 

Years Ended

 

 

 

January 1,

2022

 

January 2,

2021

 

Basis

Points Change

 

January 1,

2022

 

January 2,

2021

 

Basis

Points Change

Segment operating margin:

 

 

 

 

 

 

 

 

 

 

 

Innerwear

16.9

%

 

24.1

%

 

(717

)

 

21.1

%

 

24.1

%

 

(304

)

Activewear

13.0

 

 

8.9

 

 

419

 

 

14.1

 

 

5.7

 

 

836

 

International

19.1

 

 

17.6

 

 

142

 

 

16.4

 

 

14.6

 

 

183

 

Other

9.2

 

 

2.3

 

 

689

 

 

9.2

 

 

(4.0

)

 

1,322

 

General corporate expenses/other

(3.6

)

 

(3.7

)

 

9

 

 

(3.7

)

 

(4.1

)

 

38

 

Total operating margin before restructuring and other action-related charges

12.6

 

 

13.5

 

 

(99

)

 

13.7

 

 

12.7

 

 

99

 

Restructuring and other action-related charges

(3.7

)

 

(37.0

)

 

3,334

 

 

(1.9

)

 

(12.0

)

 

1,005

 

Total operating margin

8.9

%

 

(23.5

) %

 

3,235

 

 

11.7

%

 

0.7

%

 

1,103

 

TABLE 3-B

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

 

 

Quarters Ended

 

 

 

Years Ended

 

 

 

January 1,

2022

 

December 28,

2019

Rebased1

 

% Change

 

January 1,

2022

 

December 28,

2019

Rebased1

 

% Change

Segment net sales:

 

 

 

 

 

 

 

 

 

 

 

Innerwear

$

666,086

 

 

$

558,302

 

 

19.3

%

 

$

2,719,788

 

 

$

2,244,478

 

 

21.2

%

Activewear

 

448,948

 

 

 

376,363

 

 

19.3

 

 

 

1,679,639

 

 

 

1,493,411

 

 

12.5

 

International

 

544,582

 

 

 

495,798

 

 

9.8

 

 

 

2,066,249

 

 

 

1,930,828

 

 

7.0

 

Other

 

92,733

 

 

 

91,614

 

 

1.2

 

 

 

335,564

 

 

 

337,552

 

 

(0.6

)

Total net sales

$

1,752,349

 

 

$

1,522,077

 

 

15.1

%

 

$

6,801,240

 

 

$

6,006,269

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit:

 

 

 

 

 

 

 

 

 

 

 

Innerwear

$

112,615

 

 

$

137,945

 

 

(18.4

) %

 

$

573,852

 

 

$

505,839

 

 

13.4

%

Activewear

 

58,587

 

 

 

52,849

 

 

10.9

 

 

 

236,400

 

 

 

196,612

 

 

20.2

 

International

 

103,866

 

 

 

85,148

 

 

22.0

 

 

 

339,317

 

 

 

331,322

 

 

2.4

 

Other

 

8,528

 

 

 

10,112

 

 

(15.7

)

 

 

30,922

 

 

 

33,439

 

 

(7.5

)

General corporate expenses/other

 

(63,473

)

 

 

(58,188

)

 

9.1

 

 

 

(251,053

)

 

 

(248,871

)

 

0.9

 

Total operating profit before restructuring and other action-related charges

 

220,123

 

 

 

227,866

 

 

(3.4

)

 

 

929,438

 

 

 

818,341

 

 

13.6

 

Restructuring and other action-related charges

 

(64,557

)

 

 

(19,067

)

 

238.6

 

 

 

(131,710

)

 

 

(62,515

)

 

110.7

 

Total operating profit

$

155,566

 

 

$

208,799

 

 

(25.5

) %

 

$

797,728

 

 

$

755,826

 

 

5.5

%

 

Quarters Ended

 

 

 

Years Ended

 

 

 

January 1,

2022

 

December 28,

2019

Rebased1

 

Basis

Points Change

 

January 1,

2022

 

December 28,

2019

Rebased1

 

Basis

Points Change

Segment operating margin:

 

 

 

 

 

 

 

 

 

 

 

Innerwear

16.9

%

 

24.7

%

 

(780

)

 

21.1

%

 

22.5

%

 

(144

)

Activewear

13.0

 

 

14.0

 

 

(99

)

 

14.1

 

 

13.2

 

 

91

 

International

19.1

 

 

17.2

 

 

190

 

 

16.4

 

 

17.2

 

 

(74

)

Other

9.2

 

 

11.0

 

 

(184

)

 

9.2

 

 

9.9

 

 

(69

)

General corporate expenses/other

(3.6

)

 

(3.8

)

 

20

 

 

(3.7

)

 

(4.1

)

 

45

 

Total operating margin before restructuring and other action-related charges

12.6

 

 

15.0

 

 

(241

)

 

13.7

 

 

13.6

 

 

4

 

Restructuring and other action-related charges

(3.7

)

 

(1.3

)

 

(243

)

 

(1.9

)

 

(1.0

)

 

(90

)

Total operating margin

8.9

%

 

13.7

%

 

(484

)

 

11.7

%

 

12.6

%

 

(85

)

 

 

 

 

 

 

 

 

 

 

 

 

1

Results for the quarter and year ended December 28, 2019 reflect adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Tables 6-A through 6-E.

TABLE 4

HANESBRANDS INC.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

January 1,

2022

 

January 2,

2021

Assets

 

 

 

Cash and cash equivalents

$

536,277

 

 

$

900,615

 

Trade accounts receivable, net

 

894,151

 

 

 

768,221

 

Inventories

 

1,584,015

 

 

 

1,367,758

 

Other current assets

 

186,503

 

 

 

158,700

 

Current assets held for sale

 

327,157

 

 

 

234,086

 

Total current assets

 

3,528,103

 

 

 

3,429,380

 

Property, net

 

441,401

 

 

 

477,821

 

Right-of-use assets

 

363,854

 

 

 

432,631

 

Trademarks and other identifiable intangibles, net

 

1,220,170

 

 

 

1,293,847

 

Goodwill

 

1,133,095

 

 

 

1,158,938

 

Deferred tax assets

 

327,804

 

 

 

367,976

 

Other noncurrent assets

 

57,009

 

 

 

64,773

 

Noncurrent assets held for sale

 

 

 

 

494,501

 

Total assets

$

7,071,436

 

 

$

7,719,867

 

 

 

 

 

Liabilities

 

 

 

Accounts payable

$

1,214,847

 

 

$

891,868

 

Accrued liabilities

 

660,778

 

 

 

609,864

 

Lease liabilities

 

109,526

 

 

 

136,510

 

Current portion of long-term debt

 

25,000

 

 

 

263,936

 

Current liabilities held for sale

 

316,902

 

 

 

222,183

 

Total current liabilities

 

2,327,053

 

 

 

2,124,361

 

Long-term debt

 

3,326,091

 

 

 

3,739,434

 

Lease liabilities - noncurrent

 

281,852

 

 

 

331,577

 

Pension and postretirement benefits

 

248,518

 

 

 

381,457

 

Other noncurrent liabilities

 

185,429

 

 

 

216,091

 

Noncurrent liabilities held for sale

 

 

 

 

112,989

 

Total liabilities

 

6,368,943

 

 

 

6,905,909

 

 

 

 

 

Stockholders’ equity

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

3,499

 

 

 

3,488

 

Additional paid-in capital

 

315,337

 

 

 

307,883

 

Retained earnings

 

935,260

 

 

 

1,069,546

 

Accumulated other comprehensive loss

 

(551,603

)

 

 

(566,959

)

Total stockholders’ equity

 

702,493

 

 

 

813,958

 

Total liabilities and stockholders’ equity

$

7,071,436

 

 

$

7,719,867

 

TABLE 5

HANESBRANDS INC.

Condensed Consolidated Statements of Cash Flows1

(in thousands)

(Unaudited)

 

 

Quarters Ended

 

Years Ended

 

January 1,

2022

 

January 2,

2021

 

January 1,

2022

 

January 2,

2021

Operating Activities:

 

 

 

 

 

 

 

Net income (loss)

$

60,033

 

 

$

(332,164

)

 

$

77,224

 

 

$

(75,579

)

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

 

 

Depreciation

 

18,486

 

 

 

28,083

 

 

 

81,669

 

 

 

95,759

 

Amortization of acquisition intangibles

 

4,694

 

 

 

6,215

 

 

 

20,390

 

 

 

24,718

 

Other amortization

 

3,529

 

 

 

3,878

 

 

 

12,139

 

 

 

11,969

 

Inventory write-down charges

 

 

 

 

584,671

 

 

 

 

 

 

584,671

 

Impairment of intangible assets and goodwill

 

 

 

 

25,173

 

 

 

163,047

 

 

 

45,492

 

Loss on classification of assets held for sale

 

45,617

 

 

 

 

 

 

312,359

 

 

 

 

Loss on extinguishment of debt

 

43,739

 

 

 

 

 

 

43,739

 

 

 

 

Amortization of debt issuance costs

 

2,055

 

 

 

3,262

 

 

 

12,305

 

 

 

11,565

 

Stock compensation expense

 

6,494

 

 

 

5,168

 

 

 

16,630

 

 

 

18,969

 

Deferred taxes

 

11,550

 

 

 

(168,068

)

 

 

3,934

 

 

 

(161,215

)

Other

 

2,324

 

 

 

3,497

 

 

 

(2,084

)

 

 

8,501

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

20,752

 

 

 

168,934

 

 

 

(181,173

)

 

 

(6,945

)

Inventories

 

(990

)

 

 

123,310

 

 

 

(293,455

)

 

 

(136,057

)

Other assets

 

(47,678

)

 

 

42,215

 

 

 

(40,636

)

 

 

(1,144

)

Accounts payable

 

(22,281

)

 

 

(222,207

)

 

 

368,753

 

 

 

(32,641

)

Accrued pension and postretirement benefits

 

(300

)

 

 

133

 

 

 

(40,768

)

 

 

(18,832

)

Accrued liabilities and other

 

(51,991

)

 

 

(54,853

)

 

 

69,336

 

 

 

79,238

 

Net cash from operating activities

 

96,033

 

 

 

217,247

 

 

 

623,409

 

 

 

448,469

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(13,952

)

 

 

(4,702

)

 

 

(69,272

)

 

 

(53,735

)

Proceeds from sales of assets

 

330

 

 

 

340

 

 

 

2,809

 

 

 

671

 

Other

 

5,571

 

 

 

4,364

 

 

 

14,008

 

 

 

11,982

 

Net cash from investing activities

 

(8,051

)

 

 

2

 

 

 

(52,455

)

 

 

(41,082

)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

 

Borrowings on Term Loan Facilities

 

1,000,000

 

 

 

 

 

 

1,000,000

 

 

 

 

Repayments on Term Loan Facilities

 

(609,375

)

 

 

 

 

 

(925,000

)

 

 

 

Borrowings on Accounts Receivable Securitization Facility

 

 

 

 

 

 

 

 

 

 

227,061

 

Repayments on Accounts Receivable Securitization Facility

 

 

 

 

 

 

 

 

 

 

(227,061

)

Borrowings on Revolving Loan Facilities

 

 

 

 

 

 

 

 

 

 

1,638,000

 

Repayments on Revolving Loan Facilities

 

 

 

 

 

 

 

 

 

 

(1,756,189

)

Borrowings on Senior Notes

 

 

 

 

 

 

 

 

 

 

700,000

 

Repayments on Senior Notes

 

(700,000

)

 

 

 

 

 

(700,000

)

 

 

 

Borrowings on International Debt

 

 

 

 

 

 

 

 

 

 

31,222

 

Repayments on International Debt

 

 

 

 

 

 

 

 

 

 

(36,383

)

Borrowings on notes payable

 

39,890

 

 

 

68,124

 

 

 

149,287

 

 

 

234,682

 

Repayments on notes payable

 

(40,142

)

 

 

(72,900

)

 

 

(149,739

)

 

 

(239,008

)

Share repurchases

 

 

 

 

 

 

 

 

 

 

(200,269

)

Cash dividends paid

 

(52,385

)

 

 

(52,253

)

 

 

(209,484

)

 

 

(210,385

)

Payments to amend and refinance credit facilities

 

(42,661

)

 

 

(80

)

 

 

(43,186

)

 

 

(15,018

)

Other

 

(7,423

)

 

 

(4,163

)

 

 

(9,898

)

 

 

(4,483

)

Net cash from financing activities

 

(412,096

)

 

 

(61,272

)

 

 

(888,020

)

 

 

142,169

 

Effect of changes in foreign exchange rates on cash

 

(5,701

)

 

 

22,072

 

 

 

(32,908

)

 

 

31,124

 

Change in cash, cash equivalents and restricted cash

 

(329,815

)

 

 

178,049

 

 

 

(349,974

)

 

 

580,680

 

Cash, cash equivalents and restricted cash at beginning of period

 

890,444

 

 

 

732,554

 

 

 

910,603

 

 

 

329,923

 

Cash, cash equivalents and restricted cash at end of period

 

560,629

 

 

 

910,603

 

 

 

560,629

 

 

 

910,603

 

Less restricted cash at end of period

 

 

 

 

1,166

 

 

 

 

 

 

1,166

 

Cash and cash equivalents at end of period

$

560,629

 

 

$

909,437

 

 

$

560,629

 

 

$

909,437

 

 

 

 

 

 

 

 

 

Balances included in the Condensed Consolidated Balance Sheets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

536,277

 

 

$

900,615

 

 

$

536,277

 

 

$

900,615

 

Cash and cash equivalents included in current assets held for sale

 

24,352

 

 

 

8,822

 

 

 

24,352

 

 

 

8,822

 

Cash and cash equivalents at end of period

$

560,629

 

 

$

909,437

 

 

$

560,629

 

 

$

909,437

 

1

The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.

TABLE 6-A

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended January 1, 2022

 

Gross Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit

 

Other

Expenses

 

Income

From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Expense

 

Income

From

Continuing

Operations

 

Diluted

Earnings Per

Share From

Continuing

Operations1

As reported

$

667,728

 

 

$

(512,162

)

 

$

155,566

 

 

$

(47,359

)

 

$

72,900

 

$

(4,946

)

 

$

67,954

 

 

$

0.19

 

As a percentage of net sales

 

38.1

%

 

 

29.2

%

 

 

8.9

%

 

 

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Potential Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional services

 

 

 

 

7,824

 

 

 

7,824

 

 

 

 

 

 

7,824

 

 

 

 

 

7,824

 

 

 

0.02

 

Loss on classification of assets held for sale

 

 

 

 

38,364

 

 

 

38,364

 

 

 

 

 

 

38,364

 

 

 

 

 

38,364

 

 

 

0.11

 

Operating model

 

2,397

 

 

 

3,194

 

 

 

5,591

 

 

 

 

 

 

5,591

 

 

 

 

 

5,591

 

 

 

0.02

 

Supply chain segmentation

 

3,102

 

 

 

 

 

 

3,102

 

 

 

 

 

 

3,102

 

 

 

 

 

3,102

 

 

 

0.01

 

Technology

 

 

 

 

2,212

 

 

 

2,212

 

 

 

 

 

 

2,212

 

 

 

 

 

2,212

 

 

 

0.01

 

Other

 

 

 

 

7,464

 

 

 

7,464

 

 

 

 

 

 

7,464

 

 

 

 

 

7,464

 

 

 

0.02

 

Early extinguishment and refinancing of debt

 

 

 

 

 

 

 

 

 

 

45,699

 

 

 

45,699

 

 

 

 

 

45,699

 

 

 

0.13

 

Discrete tax benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,050

)

 

 

(8,050

)

 

 

(0.02

)

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,477

)

 

 

(14,477

)

 

 

(0.04

)

Total restructuring and other action-related charges

 

5,499

 

 

 

59,058

 

 

 

64,557

 

 

 

45,699

 

 

 

110,256

 

 

(22,527

)

 

 

87,729

 

 

 

0.25

 

As adjusted

$

673,227

 

 

$

(453,104

)

 

$

220,123

 

 

$

(1,660

)

 

$

183,156

 

$

(27,473

)

 

$

155,683

 

 

$

0.44

 

As a percentage of net sales

 

38.4

%

 

 

25.9

%

 

 

12.6

%

 

 

 

 

 

 

 

 

 

 

 

Year Ended January 1, 2022

 

Gross Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit

 

Other

Expenses

 

Income

From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Expense

 

Income

From

Continuing

Operations

 

Diluted

Earnings

Per Share

From

Continuing

Operations1

As reported

$

2,651,699

 

 

$

(1,853,971

)

 

$

797,728

 

 

$

(53,586

)

 

$

581,075

 

$

(60,107

)

 

$

520,968

 

 

$

1.48

 

As a percentage of net sales

 

39.0

%

 

 

27.3

%

 

 

11.7

%

 

 

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Potential Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional services

 

 

 

 

44,617

 

 

 

44,617

 

 

 

 

 

 

44,617

 

 

 

 

 

44,617

 

 

 

0.13

 

Loss on classification of assets held for sale

 

 

 

 

38,364

 

 

 

38,364

 

 

 

 

 

 

38,364

 

 

 

 

 

38,364

 

 

 

0.11

 

Operating model

 

2,397

 

 

 

20,794

 

 

 

23,191

 

 

 

 

 

 

23,191

 

 

 

 

 

23,191

 

 

 

0.07

 

Impairment of intangible assets

 

 

 

 

7,302

 

 

 

7,302

 

 

 

 

 

 

7,302

 

 

 

 

 

7,302

 

 

 

0.02

 

Supply chain segmentation

 

7,815

 

 

 

(2,396

)

 

 

5,419

 

 

 

 

 

 

5,419

 

 

 

 

 

5,419

 

 

 

0.02

 

Technology

 

 

 

 

4,617

 

 

 

4,617

 

 

 

 

 

 

4,617

 

 

 

 

 

4,617

 

 

 

0.01

 

Other

 

(114

)

 

 

8,314

 

 

 

8,200

 

 

 

 

 

 

8,200

 

 

 

 

 

8,200

 

 

 

0.02

 

Early extinguishment and refinancing of debt

 

 

 

 

 

 

 

 

 

 

45,699

 

 

 

45,699

 

 

 

 

 

45,699

 

 

 

0.13

 

Discrete tax benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,147

)

 

 

(27,147

)

 

 

(0.08

)

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,518

)

 

 

(26,518

)

 

 

(0.08

)

Total restructuring and other action-related charges

 

10,098

 

 

 

121,612

 

 

 

131,710

 

 

 

45,699

 

 

 

177,409

 

 

(53,665

)

 

 

123,744

 

 

 

0.35

 

As adjusted

$

2,661,797

 

 

$

(1,732,359

)

 

$

929,438

 

 

$

(7,887

)

 

$

758,484

 

$

(113,772

)

 

$

644,712

 

 

$

1.83

 

As a percentage of net sales

 

39.1

%

 

 

25.5

%

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

1

Amounts may not be additive due to rounding.

Including the unfavorable foreign currency impact of $7 million, global Champion sales excluding C9 Champion increased approximately 10% in the fourth quarter of 2021 compared to the fourth quarter of 2020. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 12% in the fourth quarter of 2021 compared to the fourth quarter of 2020.

Including the favorable foreign currency impact of $3 million, global Champion sales excluding C9 Champion increased approximately 25% in the fourth quarter of 2021 compared to the fourth quarter of 2019. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 25% in the fourth quarter of 2021 compared to the fourth quarter of 2019.

TABLE 6-B

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended January 2, 2021

 

Gross Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit (Loss)

 

Income

(Loss) From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Benefit

(Expense)

 

Income

(Loss) From

Continuing

Operations

 

Diluted

Earnings

(Loss) Per

Share From

Continuing

Operations1

As reported

$

99,199

 

 

$

(495,706

)

 

$

(396,507

)

 

$

(445,146

)

 

$

152,948

 

 

$

(292,198

)

 

$

(0.83

)

As a percentage of net sales

 

5.9

%

 

 

29.3

%

 

 

(23.5

) %

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply chain actions

 

836

 

 

 

 

 

 

836

 

 

 

836

 

 

 

 

 

 

836

 

 

 

0.00

 

Other

 

(63

)

 

 

515

 

 

 

452

 

 

 

452

 

 

 

 

 

 

452

 

 

 

0.00

 

COVID-19 related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

 

 

25,173

 

 

 

25,173

 

 

 

25,173

 

 

 

 

 

 

25,173

 

 

 

0.07

 

Full Potential Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory SKU rationalization

 

192,704

 

 

 

 

 

 

192,704

 

 

 

192,704

 

 

 

 

 

 

192,704

 

 

 

0.55

 

PPE inventory write-off

 

362,913

 

 

 

 

 

 

362,913

 

 

 

362,913

 

 

 

 

 

 

362,913

 

 

 

1.03

 

PPE vendor commitments

 

26,400

 

 

 

 

 

 

26,400

 

 

 

26,400

 

 

 

 

 

 

26,400

 

 

 

0.08

 

Write-off of acquisition tax asset

 

 

 

 

16,858

 

 

 

16,858

 

 

 

16,858

 

 

 

 

 

 

16,858

 

 

 

0.05

 

Discrete tax benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

(66,515

)

 

 

(66,515

)

 

 

(0.19

)

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

(118,133

)

 

 

(118,133

)

 

 

(0.34

)

Total restructuring and other action-related charges

 

582,790

 

 

 

42,546

 

 

 

625,336

 

 

 

625,336

 

 

 

(184,648

)

 

 

440,688

 

 

 

1.25

 

As adjusted

$

681,989

 

 

$

(453,160

)

 

$

228,829

 

 

$

180,190

 

 

$

(31,700

)

 

$

148,490

 

 

$

0.42

 

As a percentage of net sales

 

40.4

%

 

 

26.8

%

 

 

13.5

%

 

 

 

 

 

 

 

 

 

Year Ended January 2, 2021

 

Gross Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit

 

Income

(Loss) From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Benefit

(Expense)

 

Income

(Loss) From

Continuing

Operations

 

Diluted

Earnings

(Loss) Per

Share From

Continuing

Operations1

As reported

$

1,602,700

 

 

$

(1,560,034

)

 

$

42,666

 

 

$

(142,227

)

 

$

109,940

 

 

$

(32,287

)

 

$

(0.09

)

As a percentage of net sales

 

26.2

%

 

 

25.5

%

 

 

0.7

%

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply chain actions

 

19,636

 

 

 

 

 

 

19,636

 

 

 

19,636

 

 

 

 

 

 

19,636

 

 

 

0.06

 

Program exit costs

 

9,387

 

 

 

467

 

 

 

9,854

 

 

 

9,854

 

 

 

 

 

 

9,854

 

 

 

0.03

 

Other

 

(440

)

 

 

8,203

 

 

 

7,763

 

 

 

7,763

 

 

 

 

 

 

7,763

 

 

 

0.02

 

COVID-19 related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply chain re-startup

 

45,149

 

 

 

3,459

 

 

 

48,608

 

 

 

48,608

 

 

 

 

 

 

48,608

 

 

 

0.14

 

Bad debt

 

 

 

 

9,418

 

 

 

9,418

 

 

 

9,418

 

 

 

 

 

 

9,418

 

 

 

0.03

 

Inventory

 

14,869

 

 

 

 

 

 

14,869

 

 

 

14,869

 

 

 

 

 

 

14,869

 

 

 

0.04

 

Goodwill

 

 

 

 

25,173

 

 

 

25,173

 

 

 

25,173

 

 

 

 

 

 

25,173

 

 

 

0.07

 

Full Potential Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory SKU rationalization

 

192,704

 

 

 

 

 

 

192,704

 

 

 

192,704

 

 

 

 

 

 

192,704

 

 

 

0.55

 

PPE inventory write-off

 

362,913

 

 

 

 

 

 

362,913

 

 

 

362,913

 

 

 

 

 

 

362,913

 

 

 

1.03

 

PPE vendor commitments

 

26,400

 

 

 

 

 

 

26,400

 

 

 

26,400

 

 

 

 

 

 

26,400

 

 

 

0.07

 

Write-off of acquisition tax asset

 

 

 

 

16,858

 

 

 

16,858

 

 

 

16,858

 

 

 

 

 

 

16,858

 

 

 

0.05

 

Discrete tax benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

(69,628

)

 

 

(69,628

)

 

 

(0.20

)

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

(135,714

)

 

 

(135,714

)

 

 

(0.38

)

Total restructuring and other action-related charges

 

670,618

 

 

 

63,578

 

 

 

734,196

 

 

 

734,196

 

 

 

(205,342

)

 

 

528,854

 

 

 

1.50

 

As adjusted

$

2,273,318

 

 

$

(1,496,456

)

 

$

776,862

 

 

$

591,969

 

 

$

(95,402

)

 

$

496,567

 

 

$

1.40

 

As a percentage of net sales

 

37.1

%

 

 

24.4

%

 

 

12.7

%

 

 

 

 

 

 

 

 

1

Amounts may not be additive due to rounding.

TABLE 6-C

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended December 28, 2019

 

Net Sales

 

Gross

Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit

 

Income

From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Expense

 

Income

From

Continuing

Operations

 

Diluted

Earnings

Per Share

From Continuing

Operations1

As reported

$

1,610,012

 

 

$

633,129

 

 

$

(403,123

)

 

$

230,006

 

 

$

182,142

 

 

$

(23,528

)

 

$

158,614

 

 

$

0.43

 

Less exited programs2

 

(87,935

)

 

 

(30,514

)

 

 

9,307

 

 

 

(21,207

)

 

 

(21,207

)

 

 

1,241

 

 

 

(19,966

)

 

 

(0.05

)

As rebased

 

1,522,077

 

 

 

602,615

 

 

 

(393,816

)

 

 

208,799

 

 

 

160,935

 

 

 

(22,287

)

 

 

138,648

 

 

 

0.38

 

As a percentage of net sales

 

 

 

39.6

%

 

 

25.9

%

 

 

13.7

%

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply chain actions

 

 

 

 

13,622

 

 

 

 

 

 

13,622

 

 

 

13,622

 

 

 

 

 

 

13,622

 

 

 

0.04

 

Program exit costs

 

 

 

 

4,616

 

 

 

 

 

 

4,616

 

 

 

4,616

 

 

 

 

 

 

4,616

 

 

 

0.01

 

Other

 

 

 

 

 

 

 

829

 

 

 

829

 

 

 

829

 

 

 

 

 

 

829

 

 

 

0.00

 

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,032

)

 

 

(16,032

)

 

 

(0.04

)

Total restructuring and other action-related charges

 

 

 

 

18,238

 

 

 

829

 

 

 

19,067

 

 

 

19,067

 

 

 

(16,032

)

 

 

3,035

 

 

 

0.01

 

As adjusted

$

1,522,077

 

 

$

620,853

 

 

$

(392,987

)

 

$

227,866

 

 

$

180,002

 

 

$

(38,319

)

 

$

141,683

 

 

$

0.39

 

As a percentage of net sales

 

 

 

40.8

%

 

 

25.8

%

 

 

15.0

%

 

 

 

 

 

 

 

 

 

Year Ended Dec 28, 2019

 

Net Sales

 

Gross

Profit

 

Selling,

General and

Administrative

Expenses

 

Operating

Profit

 

Income

From

Continuing

Operations

Before

Income Tax

Expense

 

Income Tax

Expense

 

Income

From

Continuing

Operations

 

Diluted

Earnings

Per Share

From

Continuing

Operations1

As reported

$

6,425,716

 

 

$

2,428,702

 

 

$

(1,578,017

)

 

$

850,685

 

 

$

643,560

 

 

$

(70,236

)

 

$

573,324

 

 

$

1.57

 

Less exited programs2

 

(419,447

)

 

 

(131,861

)

 

 

37,002

 

 

 

(94,859

)

 

 

(94,859

)

 

 

11,629

 

 

 

(83,230

)

 

 

(0.23

)

As rebased

 

6,006,269

 

 

 

2,296,841

 

 

 

(1,541,015

)

 

 

755,826

 

 

 

548,701

 

 

 

(58,607

)

 

 

490,094

 

 

 

1.34

 

As a percentage of net sales

 

 

 

38.2

%

 

 

25.7

%

 

 

12.6

%

 

 

 

 

 

 

 

 

Restructuring and other action-related charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply chain actions

 

 

 

 

52,832

 

 

 

 

 

 

52,832

 

 

 

52,832

 

 

 

 

 

 

52,832

 

 

 

0.14

 

Program exit costs

 

 

 

 

4,616

 

 

 

 

 

 

4,616

 

 

 

4,616

 

 

 

 

 

 

4,616

 

 

 

0.01

 

Other

 

 

 

 

 

 

 

5,067

 

 

 

5,067

 

 

 

5,067

 

 

 

 

 

 

5,067

 

 

 

0.01

 

Tax effect on actions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,159

)

 

 

(22,159

)

 

 

(0.06

)

Total restructuring and other action-related charges

 

 

 

 

57,448

 

 

 

5,067

 

 

 

62,515

 

 

 

62,515

 

 

 

(22,159

)

 

 

40,356

 

 

 

0.11

 

As adjusted

$

6,006,269

 

 

$

2,354,289

 

 

$

(1,535,948

)

 

$

818,341

 

 

$

611,216

 

 

$

(80,766

)

 

$

530,450

 

 

$

1.45

 

As a percentage of net sales

 

 

 

39.2

%

 

 

25.6

%

 

 

13.6

%

 

 

 

 

 

 

 

 

1

Amounts may not be additive due to rounding.

2

Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

TABLE 6-D

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended December 28, 2019

 

As Reported

 

Less: Exited

Programs1

 

Adjusted for

Exited

Programs

 

Less:

Restructuring

and other

action-related

charges

 

Rebased

Segment net sales:

 

 

 

 

 

 

 

 

 

Innerwear

$

569,630

 

 

$

11,328

 

$

558,302

 

 

$

 

 

$

558,302

 

Activewear

 

452,970

 

 

 

76,607

 

 

376,363

 

 

 

 

 

 

376,363

 

International

 

495,798

 

 

 

 

 

495,798

 

 

 

 

 

 

495,798

 

Other

 

91,614

 

 

 

 

 

91,614

 

 

 

 

 

 

91,614

 

Total net sales

$

1,610,012

 

 

$

87,935

 

$

1,522,077

 

 

$

 

 

$

1,522,077

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit:

 

 

 

 

 

 

 

 

 

Innerwear

$

140,368

 

 

$

2,423

 

$

137,945

 

 

$

 

 

$

137,945

 

Activewear

 

71,633

 

 

 

18,784

 

 

52,849

 

 

 

 

 

 

52,849

 

International

 

85,148

 

 

 

 

 

85,148

 

 

 

 

 

 

85,148

 

Other

 

10,112

 

 

 

 

 

10,112

 

 

 

 

 

 

10,112

 

General corporate expenses/other

 

(58,188

)

 

 

 

 

(58,188

)

 

 

 

 

 

(58,188

)

Restructuring and other action-related charges

 

(19,067

)

 

 

 

 

(19,067

)

 

 

(19,067

)

 

 

 

Total operating profit

$

230,006

 

 

$

21,207

 

$

208,799

 

 

$

(19,067

)

 

$

227,866

 

 

Year Ended December 28, 2019

 

As Reported

 

Less: Exited

Programs1

 

Adjusted for

Exited

Programs

 

Less:

Restructuring

and other

action-related

charges

 

Rebased

Segment net sales:

 

 

 

 

 

 

 

 

 

Innerwear

$

2,302,632

 

 

$

58,154

 

$

2,244,478

 

 

$

 

 

$

2,244,478

 

Activewear

 

1,854,704

 

 

 

361,293

 

 

1,493,411

 

 

 

 

 

 

1,493,411

 

International

 

1,930,828

 

 

 

 

 

1,930,828

 

 

 

 

 

 

1,930,828

 

Other

 

337,552

 

 

 

 

 

337,552

 

 

 

 

 

 

337,552

 

Total net sales

$

6,425,716

 

 

$

419,447

 

$

6,006,269

 

 

$

 

 

$

6,006,269

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit:

 

 

 

 

 

 

 

 

 

Innerwear

$

515,991

 

 

$

10,152

 

$

505,839

 

 

$

 

 

$

505,839

 

Activewear

 

281,319

 

 

 

84,707

 

 

196,612

 

 

 

 

 

 

196,612

 

International

 

331,322

 

 

 

 

 

331,322

 

 

 

 

 

 

331,322

 

Other

 

33,439

 

 

 

 

 

33,439

 

 

 

 

 

 

33,439

 

General corporate expenses/other

 

(248,871

)

 

 

 

 

(248,871

)

 

 

 

 

 

(248,871

)

Restructuring and other action-related charges

 

(62,515

)

 

 

 

 

(62,515

)

 

 

(62,515

)

 

 

 

Total operating profit

$

850,685

 

 

$

94,859

 

$

755,826

 

 

$

(62,515

)

 

$

818,341

 

1

Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

TABLE 6-E

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 

Last Twelve Months

 

January 1,

2022

 

January 2,

2021

EBITDA1:

 

 

 

Income (loss) from continuing operations

$

520,968

 

 

$

(32,287

)

Interest expense, net

 

163,067

 

 

 

164,238

 

Income tax expense (benefit)

 

60,107

 

 

 

(109,940

)

Depreciation and amortization

 

110,130

 

 

 

114,967

 

Total EBITDA

 

854,272

 

 

 

136,978

 

Total restructuring and other action-related charges (excluding tax effect on actions)

 

177,409

 

 

 

734,196

 

Stock compensation expense

 

16,405

 

 

 

18,507

 

Total EBITDA, as adjusted

$

1,048,086

 

 

$

889,681

 

 

 

 

 

Net debt:

 

 

 

Debt (current and long-term debt)

$

3,351,091

 

 

$

4,003,370

 

(Less) Cash and cash equivalents

 

(536,277

)

 

 

(900,615

)

Net debt

$

2,814,814

 

 

$

3,102,755

 

 

 

 

 

Net debt/EBITDA, as adjusted

 

2.7

 

 

 

3.5

 

1

Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.

 

Quarters Ended

 

Years Ended

 

January 1,

2022

 

January 2,

2021

 

January 1,

2022

 

January 2,

2021

Free cash flow1:

 

 

 

 

 

 

 

Net cash from operating activities

$ 96,033

 

$ 217,247

 

$ 623,409

 

$ 448,469

Capital expenditures

(13,952)

 

(4,702)

 

(69,272)

 

(53,735)

Free cash flow

$ 82,081

 

$ 212,545

 

$ 554,137

 

$ 394,734

1

 

Free cash flow includes the results from continuing and discontinued operations.

TABLE 7

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of GAAP Outlook to Adjusted Outlook

(in thousands, except per share data)

(Unaudited)

 

 

Quarter Ended

 

Year Ended

 

April 2,

2022

 

December 31,

2022

Operating profit outlook, as calculated under GAAP

$120,000 to $150,000

 

$780,000 to $850,000

Restructuring and other action-related charges

$15,000

 

$60,000

Operating profit outlook, as adjusted

$135,000 to $165,000

 

$840,000 to $910,000

 

 

 

 

Diluted earnings per share from continuing operations, as calculated under GAAP1

$0.20 to $0.27

 

$1.50 to $1.67

Restructuring and other action-related charges

$0.04

 

$0.14

Diluted earnings per share from continuing operations, as adjusted

$0.24 to $0.31

 

$1.64 to $1.81

1

 

The company expects approximately 353 million diluted weighted average shares outstanding for both the quarter ended April 2, 2022 and the year ended December 31, 2022.

Hanesbrands is unable to reconcile projections of financial performance beyond 2022 without unreasonable efforts, because the Company cannot predict, with a reasonable degree of certainty, the type and extent of certain items that would be expected to impact these figures in 2023 and beyond, such as net sales, operating profit, tax rates and action related charges.

 

Contacts

News Media contact: Kirk Saville (336) 979-7293

Analysts and Investors contact: T.C. Robillard (336) 519-2115

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