Hanes updates guidance to fit acquisitions' share

06 Jun '16

1 min read

Basic innerwear and activewear retailer Hanes Brands has revised its initial guidance for 2016 to accommodate contribution from its pending acquisitions – Champion Europe (about to close late June) and Pacific Brands (about to close July) – in conjunction with investor meetings.

The company's diluted EPS on a GAAP basis is expected to be in the range of $1.51-1.57 as compared to $1.63-1.73 to accommodate acquisition related charges. It expects the acquisitions to contribute approximately $800 million in net sales annually, revising its net sales to $6.15-6.25 billion as compared to previous net sales guidance of $5.8-5.9 billion.

Due to timing of the expected acquisition closings and seasonality of the businesses, in 2016 Hanes expects to benefit from approximately one-third of annualised profitability while incurring approximately three-fourths of annualised interest expense.

“The acquisitions of Champion Europe and Pacific Brands will make meaningful contributions to our ongoing success and growth, and we are looking forward to adding these operations and their strong management teams to our worldwide portfolio,” Gerald Evans Jr, COO of Hanes commented.

“Our sell more, spend less and make acquisitions strategy continues to create value,” he added. (MCJ)

Fibre2Fashion News Desk - India

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