Clothing company Hanesbrands (NYSE:HBI) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Hanesbrands missed analysts’ revenue expectations by 26.4% last quarter, reporting revenues of $995.4 million, down 3.8% year on year. It was a softer quarter for the company, with underwhelming earnings guidance for the full year.
Is Hanesbrands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hanesbrands’s revenue to decline 2.7% year on year to $935.7 million, in line with the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Hanesbrands’s peers in the apparel, accessories and luxury goods segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp’s revenues decreased 5.6% year on year, beating analysts’ expectations by 1.6%, and Kontoor Brands reported revenues up 2.4%, topping estimates by 1%. VF Corp traded up 27% following the results while Kontoor Brands was also up 6.7%.
Read our full analysis of VF Corp’s results here and Kontoor Brands’s results here.
There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 3.3% on average over the last month. Hanesbrands is down 4.3% during the same time and is heading into earnings with an average analyst price target of $6.54 (compared to the current share price of $7.07).
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