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Aug. 11, 2022, 7:58 a.m. EDT

Hanebrands stock dives more than 9% after profit, sales drop below expectations

Shares of Hanesbrands Inc. (NYS:HBI) took a 9.2% dive in premarket trading Thursday, after the lifestyle and athletic apparel company reported second-quarter profit and sales that fell below expectations, as a previously announced ransomware attack and softer-than-anticipated point-of-sale trends weighed on results. Net income fell to $92.1 million, or 26 cents a share, from $128.7 million, or 37 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 28 cents missed the FactSet consensus of 32 cents. Sales declined 13.6% to $1.51 billion, below the FactSet consensus of $1.69 billion. Gross margin contracted to 37.8% from 38.9%, due to lower sales volume, cost inflation and costs associated with the May cyber event. The company said the cyber event has been contained, and there is no ongoing impact on the company's ability to provide its products and services. Looking ahead, the company expects third-quarter adjusted EPS of 27 cents to 32 cents and revenue of $1.73 billion to $1.78 billion, both below the FactSet consensus for EPS of 47 cents and revenue of $1.80 billion. The stock has dropped 5.5% over the past three months through Wednesday, while the S&P 500 (S&P:SPX) has gained 7.0%.

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