HanesBrands reports third consecutive record Q1, double digit EPS growth
HanesBrands announced last week its financial results for its first quarter of fiscal 2016 ended April 2, 2016. The company reported record first quarter results for the third consecutive year.
Net sales increased 1% to $1.22 billion, adjusted operating profit excluding actions increased 10% to $147 million, and adjusted EPS excluding actions increased 18% to $0.26. Operating profit increased 36% to $122 million and earnings per share increased 62% to $0.21.
The record first quarter results benefitted from the company’s acquisition of Knights Apparel in April 2015. The brand recorded $21 million in sales and contributed to the 3% increase in activewear sales.
“We are off to a very good start and tracking to our plan to deliver another year of double-digit EPS growth,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “We remain focused on our previously announced sales initiatives, reaping acquisition synergies, expanding margins, and developing growth plans for our pending acquisition of Champion Europe.”
The company reaffirms its financial guidance for full year 2016 and expects net sales of $5.8 billion to $5.9 billion; adjusted operating profit of $920 million to $950 million; adjusted EPS of $1.85 to $1.91; and record net cash from operations of $750 million to $850 million. The guidance reflects benefits from the acquisitions of Maidenform, Knights Apparel and Hanes Europe Innerwear, which are expected to add $40 million in synergies in 2016.
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