HanesBrands Inc. announces results for the first quarter of 2023.

“We delivered first-quarter results in-line with our outlook, generated positive cash flow and reiterated our full-year outlook,” says Steve Bratspies, CEO, in a press release. “I want to thank all of our associates for their continued dedication and hard work as they once again delivered near-term results while implementing our transformation strategy. … We’re confident in the progress we’re making to become a more consumer-centric, data-driven company that consistently generates higher sales and profit growth over time.”

Highlights

Highlights from the first quarter include:

• Generated positive free cash flow and sequentially reduced inventory
• Expanded innovation globally
• Refinancing completed

First-quarter 2023 results include:

• Net sales from continuing operations were $1.39 billion, which includes a $31 million unfavorable impact from foreign exchange rates, a decrease of 12% compared to last year’s first-quarter results.
• Global Champion brand sales decreased 17% on a reported basis as compared to prior year, with a 22% decline in the U.S. and a 12% decline internationally.
• Gross profit of $450 million declined 23% and gross margin declined 470 basis points to 32.4% as compared to prior year.

Second-Quarter and Full-Year 2023 Financial Outlook

With respect to its 2023 guidance, the company’s outlook continues to reflect, but is not limited to, the following assumptions: a muted consumer demand environment given the continued macroeconomic uncertainty; first-half margin pressure as it continues to sell through its higher-cost inventory; and year-over-year improvement in second-half margins, particularly the fourth quarter, as lower-cost inventory currently being produced is sold and it anniversaries last year’s manufacturing time-out costs related to its inventory reduction initiative in 2022.

HanesBrands is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in the fourth quarter of 2022. Importantly, the reserve does not impact cash taxes. Some portion of the reserve may reverse in future periods.

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

Visit the HanesBrands website for full results for the first quarter of 2023.