Hanesbrands backs Q2, FY18 guidance issued on May 1
HanesBrands will highlight its diversified global business model that has the company poised to generate consistent growth and as much free cash flow in the next five years as the previous 11 years combined. In the four years since the company's last investor day, the company has transformed itself from a U.S.-centric business supported by a global supply chain into a worldwide basic apparel leader with commercial operations in the Americas, Europe, Asia and Australia that more fully leverage its global supply chain. At the investor day meeting at company headquarters beginning at 8:15 a.m., company executives will outline five-year base-case scenarios expected to: generate consistent organic sales growth, expand margins and increase earnings per share, generate cumulative operating cash flow of approximately $4.3 billion and cumulative free cash flow approaching $4 billion, and create shareholder value through a balanced capital allocation strategy of dividends, share repurchases and acquisitions. Immediate priorities for the company include continuing to drive double-digit global revenue growth for Champion and the online/consumer-direct channel; returning the U.S. Innerwear business to growth; capturing the remaining synergies and ending integration charges for prior acquisitions; and reducing the company's net debt-to-EBITDA ratio. Hanes has reaffirmed its second-quarter 2018 and full-year 2018 guidance issued May 1, 2018. The company continues to expect full-year 2018 net sales of $6.72 billion to $6.82 billion, GAAP operating profit of $870 million to $905 million, adjusted operating profit excluding actions of $950 million to $985 million, GAAP EPS of $1.54 to $1.62, adjusted EPS excluding actions of $1.72 to $1.80, and net cash from operations of $675 million to $750 million. Second-quarter net sales are expected to be in the range of $1.7 billion to $1.725 billion. GAAP operating profit is expected to be $215 million to $225 million, and adjusted operating profit excluding actions is expected to be $240 million to $250 million. GAAP EPS is expected to be $0.38 to $0.40, and adjusted EPS excluding actions is expected to be $0.44 to $0.46.