2011 Financials Revealed by Hanesbrands
Considered to be a leader in daily branded basic apparel, Hanesbrands Incorporated (HBI) has recently bared its financial performance for the fourth quarter and full year ending December 31, 2011. Net sales for the said fiscal year were at $4.6 billion which represents a 7 percent increase to the previous year. Net income was pegged at $2667 million, translating to $2.69 per diluted share, forming an increase of 25 percent over the previous year’s EPS of $2.16.
The fourth quarter performance of the company was affected significantly by unexpected and meaningful slowdown of orders in December due to retailer inventory management.
Looking prospectively at 2012, Hanesbrands sees its core categories to put a good showing despite inflation and looks ahead to generate record-breaking free cash flow. However, the company’s wholesale category, specifically the outwear segment, is forecasting losses because of extreme competition in pricing and a reduction in its EPS. With the challenges of inflation, outwear wholesale category is expected to have difficulties in the first half and a recovery in the second semester of 2012.
Te company Chairman and CEO Richard Noll said that the company has achieved record earnings and sales in 2011 with strong performances in its different categories, and management looks forward in 2012 in dealing with inflation challenges while concentrating in its core growth strategies.
Hanesbrands stock seems to have a positive momentum in 2012, climbing from $21.86 to the current $28.30 during the first two months of 2012. The all-time high of $36.20, recorded in 2008, seems to be within reach…