HanesBrands, a leading marketer of everyday basic apparel under world-class brands, announced that acquisition benefits, strong Activewear performance, and increased operating efficiencies drove record second-quarter financial results. Despite a restrained consumer-spending environment, the company again raised its full-year adjusted EPS guidance.
-Second Consecutive Quarter of Record Results Driven by Acquisition Benefits, Activewear Performance, and Supply Chain Manufacturing Execution
-Excluding Actions, Net Sales up 12%, Operating Profit up 27% and EPS up 44%
-Full-Year Adjusted EPS Guidance Increased to a Range of $5.20 to $5.40, an increase of $0.40 from the previous range of $4.80 to $5.00
For the second-quarter ended June 28, 2014, net sales increased 12 percent to $1.34 billion, adjusted operating profit excluding actions increased 27 percent to $231 million, and adjusted diluted EPS excluding actions increased 44 percent to $1.71.
Primary contributors to the record quarterly results despite a continuing uncertain economic environment were increased margins and operating profit as a result of the company’s Innovate-to-Elevate strategy; strong Activewear segment results; increased supply chain manufacturing efficiencies; tight control of selling, general and administrative costs; and successful integration of Maidenform Brands, Inc., which was acquired in October 2013.
As a result of strong second-quarter 2014 results, the company has raised its 2014 full-year financial guidance. Increased full-year expectations include adjusted EPS of $5.20 to $5.40, up $0.40; adjusted operating profit of $710 million to $730 million, up $45 million; and net cash from operating activities of $500 million to $600 million, up $25 million. The company has refined its expectations for net sales for the year to approximately $5.075 billion.
Our record first-half results are a testament to the value we are creating through our Innovate-to-Elevate, self-owned supply chain, and acquisition strategies, Hanes Chief Executive Officer Richard A. Noll said. We remain confident in our business model and our performance momentum. We increased our operating profit margin by 200 basis points in the first half, and we raised our full-year EPS guidance for the second quarter in succession.