Hanesbrands Falls 4.6 Percent After Giving Weak Fourth-Quarter Guidance

11/1/17

Hanesbrands Inc. saw its stock price fall 4.6 percent in after-hours trading on Wednesday after it gave fourth-quarter earnings guidance below Wall Street expectations.

The clothing manufacturer said it expects fourth-quarter earnings between 51 cents per share and 53 cents per share. Wall Street is currently expecting earnings of 56 cents per share.

The company also projected revenue between $1.625 billion and $1.65 billion for the fourth quarter. Analysts are currently expecting revenue of $1.63 billion.

Hanesbrands stock is trading at $20.99, down $1.02 or 4.63 percent in after-hours trading.

It had fallen 49 cents, or $2.2 percent, to $22.01 in Wednesday trading before the earnings were released.

The company also released third-quarter earnings in line with analyst expectations, according to a filing Wednesday with the Securities and Exchange Commission.

The clothing manufacturer announced earnings of 60 cents a share, up 7 percent from the third quarter of 2016.

The company also announced revenue of $1.8 billion, driven largely by international growth.

“The value of diversifying our portfolio with international and activewear acquisitions is evident, and we are making progress on several initiatives to adapt to the evolving and challenging retail environment in the United States,” said Chief Executive Officer Gerald W. Evans Jr. in a statement.

The Winston-Salem based clothing manufacturer produces everyday basic apparel in the Americas, Europe, Asia, Australia and South Africa.

Brands found in the United States include Hanes, Champion, Playtex and Bali.

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