Hanesbrands (HBI) has reported 12.02 percent fall in profit for the quarter ended Apr. 01, 2017. The company has earned $70.62 million, or $0.19 a share in the quarter, compared with $80.27 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $109.15 million, or $0.29 a share compared with $102.22 million or $0.26 a share, a year ago. Revenue during the quarter grew 13.22 percent to $1,380.36 million from $1,219.14 million in the previous year period. Gross margin for the quarter expanded 158 basis points over the previous year period to 39.09 percent. Total expenses were 91.21 percent of quarterly revenues, up from 89.96 percent for the same period last year. That has resulted in a contraction of 125 basis points in operating margin to 8.79 percent.
Operating income for the quarter was $121.27 million, compared with $122.40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $159.64 million compared to $147.07 million in the prior year period. At the same time, adjusted operating margin contracted 50 basis points in the quarter to 11.56 percent from 12.06 percent in the last year period.
"We are off to the strong start of 2017 that we sought," said Hanes chief executive officer Gerald W. Evans Jr. "We had one of our best first quarters for cash flow as we executed a disciplined working capital plan. Acquisitions, our Champion brand and online sales are contributing to growth as we weather expected challenges in the retail environment. In addition, we are pleased to launch Project Booster, which we believe provides a clear roadmap to accelerating growth and value creation."
For the second-quarter, Hanesbrands expects revenue to be $1,650 million. Hanesbrands projects revenue to be in the range of $6,450 million to $6,550 million for financial year 2017. For fiscal year 2017, the company projects operating income to be in the range of $845 million to $895 million. For fiscal year 2017, the company projects adjusted operating income to be in the range of $935 million to $975 million. The company forecasts diluted earnings per share to be in the range of $0.45 to $0.49 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.70 to $1.82. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.51 to $0.54 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.93 to $2.03 on adjusted basis.
Operating cash flow remains negativeHanesbrands has spent $22.80 million cash to meet operating activities during the quarter as against cash outgo of $284.81 million in the last year period. Cash flow from investing activities was $25.46 million for the quarter as against cash outgo of $19.64 million in the last year period.
Cash flow from financing activities was $4.51 million for the quarter, down 98.57 percent or $310.17 million, when compared with the last year period.
Cash and cash equivalents stood at $463.62 million as on Apr. 01, 2017, up 39.47 percent or $131.20 million from $332.42 million on Apr. 02, 2016.
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