HanesBrands ups guidance to reflect DBApparel acquisition
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September 04, 2014 (United States Of America)
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To reflect the added contributions from the DBA acquisition, US innerwear apparel retailer HanesBrands issued a new full-year 2014 guidance.
“The new guidance includes increases for net sales, adjusted operating profit and adjusted EPS, while guidance for adjusted performance measures exclude charges related to the acquisitions of DBApparel and Maidenform Brands”, Hanes said.
Hanes new guidance range for net sales is between $5.350 billion to $5.375 billion, up from previous guidance of approximately $5.075 billion.
It also raised the guidance for adjusted operating profit by $25 million to a range of $735 million to $755 million, up from the previous guidance range of $710 million to $730 million.
Hanes also increased its guidance for interest expense and other expense by $5 million to approximately $90 million to reflect the DBA purchase.
While the DBA acquisition is expected to have a slightly positive effect on the company’s corporate tax rate, we continue to anticipate the 2014 rate to be in the low teens, the innerwear brand said.
Adjusted EPS guidance for 2014 has been hiked by $0.20 to a range of $5.40 to $5.60, up from $5.20 to $5.40, reflecting the DBA contributions to sales, adjusted operating profit and the corporate tax rate, partially offset by higher interest expense.
Hanes continues to expect net cash from operating activities to be $500 million to $600 million for the fiscal year.
It expects that any cash generated in 2014 by DBA is expected to be substantially offset by cash closing expenses for the acquisition.
Hanes has raised its full-year earnings guidance twice previously in 2014 despite the continuation of a generally muted consumer environment.
Most recently, the company raised EPS guidance in conjunction with reporting second-quarter financial results on July 23, 2014, to reflect the margin-enhancing benefits of Hanes’ Innovate-to-Elevate strategy and strong efficiency performance of its self-owned global supply chain.
“Our key retailers experienced a slow start to the back-to-school season but have seen continued momentum build through August,” Hanes COO Gerald Evans said.
He continued by saying, “Our Innovate-to-Elevate platforms, particularly X-Temp comfort cooling underwear, t-shirts and socks, are performing very well, creating value for consumers, retailers and shareholders.”
It also expects slightly more than 103 million weighted average shares outstanding in 2014. (AR)
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Fibre2fashion News Desk - India
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