Dive Brief:
- HanesBrands second-quarter net sales increased 1.8% to $991 million, surpassing the company’s expectations, according to a press release Thursday. It previously forecast net sales of $970 million.
- Net sales in the U.S. for the quarter decreased by 0.6%, with the company attributing the drop to a slowdown in the intimates market. Internationally, sales dropped 3%.
- CEO Steve Bratspies said HanesBrands’ better-than-expected results for the third consecutive quarter are the result of the company’s transformation initiatives.
Dive Insight:
Following the second quarter results, HanesBrands increased its full-year outlook. It expects net sales of about $3.53 billion in 2025, which would represent a slight increase from the prior year. The company previously set revenue expectations of $3.47 billion to $3.52 billion.
In Thursday’s release, Bratspies said the outlook reflects the expected impact of tariffs. He later told analysts that HanesBrands doesn’t expect to see tariff impacts until the fourth quarter because of its current inventory.
Pricing is one of the tools HanesBrands is using to address the tariff impact, Bratspies said on the call. He didn’t elaborate on specific changes.
“Our strategy is delivering consistent results, and we’re confident it positions us for continued long-term success,” Bratspies said in the release. “We have multiple avenues to drive increased shareholder returns over the next several years through consistent sales growth, additional margin expansion, and continued debt reduction.”
While there is some weakness in overall demand, HanesBrands is gaining share and is expected to return to sales growth in 2026, said David Swartz, senior equity analyst at Morningstar Research Services.
“Hanesbrands' efforts to cut costs, operate more efficiently, and improve its balance sheet while investing in its brands are paying off,” Swartz said in a client note. “Although sales growth in women’s intimates is lacking, the firm's profitability is rising, and we expect these gains to hold.”
Bratspies is set to step down as CEO and relinquish his seat on the company’s board of directors by the end of the year. He will stay in an advisory role until a new leader is named. HanesBrands didn’t provide an update on the search process.
Since the company sold the activewear brand Champion in 2024, HanesBrands has focused on growing its innerwear business.
This year, Hanes launched an athleisure category named Hanes Moves. It also launched an innerwear and apparel collaboration with Urban Outfitters in a bid to attract younger consumers.
