Hanesbrands Inc. reported third‑quarter 2025 results that fell short of consensus estimates, with net sales of $891.7 million versus the $904.8 million forecasted by analysts. Adjusted earnings per share were $0.15, a 25% decline from the $0.20 reported in Q3 2024 and a $0.01 miss against the $0.16 consensus. The revenue shortfall was driven by a 4.5% decline in the U.S. segment and an 8% drop internationally, largely attributed to late replenishment orders at a major U.S. retailer and macro‑economic headwinds in the Americas and Australia.
Operating profit rose to $108 million, lifting the operating margin to 12.1%—an increase of 160 basis points year‑over‑year. The margin expansion was largely a result of lower selling, general and administrative expenses and reduced interest costs, while a 160‑basis‑point headwind from transition‑services revenue partially offset the gain. Gross margin contracted by 70 basis points to 40.8% due to an unfavorable business and customer mix, which more than offset lower input costs.
Segment‑level analysis shows the U.S. decline was driven by a shift in ordering patterns at a key retail partner, while international sales fell because of a challenging macro‑economic environment in the Americas and continued headwinds in the intimate apparel market in Australia. Despite these headwinds, the company’s core Hanes brand gained market share during the back‑to‑school season, and inventory positions at retail remained strong.
CEO Steve Bratspies highlighted the company’s focus on cost‑saving initiatives and operational efficiency. He noted that the late‑quarter shift in replenishment orders was an unanticipated event, but that underlying fundamentals continued to improve. Bratspies also emphasized the company’s strong unit point‑of‑sale trends and its confidence in maintaining profitability through disciplined cost management.
Investors reacted cautiously to the results. While the revenue and EPS misses raised concerns, the operating margin expansion and improved leverage ratio—from 4.3× to 3.3×—provided some support. Analysts noted that the pending acquisition by Gildan Activewear, announced in August, adds uncertainty to the company’s outlook and explains the lack of forward guidance.
The acquisition context means Hanesbrands will not provide a conference call or new guidance for the remainder of the year. Management has indicated it remains on track to meet its previously provided full‑year 2025 EPS outlook, but the lack of guidance reflects the transitional nature of the business during the merger process.
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