Attached files
file | filename |
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EX-99.4 - EX-99.4 - Hanesbrands Inc. | d73643dex994.htm |
EX-99.2 - EX-99.2 - Hanesbrands Inc. | d73643dex992.htm |
EX-99.1 - EX-99.1 - Hanesbrands Inc. | d73643dex991.htm |
8-K - 8-K - Hanesbrands Inc. | d73643d8k.htm |
Exhibit 99.3
Investor Day
Handout
May 11, 2021
1
Table of Contents
Page | ||
Financial Tables |
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Table 1 - Condensed Consolidated Statements of Income - Including European Innerwear Business as Discontinued Operations - As REPORTED |
4 | |
Table 2 - Condensed Consolidated Statements of Income - Including European Innerwear Business as Discontinued Operations - As ADJUSTED |
5 | |
Table 3 - Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information - Including European Innerwear Business as Discontinued Operations |
6 | |
Table 4 - Reconciliation of GAAP Outlook to Adjusted Outlook - Q1, Q2 and Full Year 2021 |
14 | |
Appendix |
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Table 5 - Reconciliation of Select GAAP Measures to Non-GAAP Measures |
16 |
2
Financial Tables
3
TABLE 1
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Condensed Consolidated Statements of Income - As REPORTED
(in thousands, except per share data)
(Unaudited)
Quarters Ended | Year Ended | Quarters Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
March 30, 2019 |
June 29, 2019 |
September 28, 2019 |
December 28, 2019 |
December 28, 2019 |
March 28, 2020 |
June 27, 2020 |
September 26, 2020 |
January 2, 2021 |
January 2, 2021 |
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Net sales |
$ | 1,449,687 | $ | 1,636,709 | $ | 1,729,308 | $ | 1,610,012 | $ | 6,425,716 | $ | 1,203,070 | $ | 1,543,083 | $ | 1,691,863 | $ | 1,689,145 | $ | 6,127,161 | ||||||||||||||||||||
Cost of sales |
904,765 | 1,032,527 | 1,082,839 | 976,883 | 3,997,014 | 784,902 | 1,029,221 | 1,120,392 | 1,589,946 | 4,524,461 | ||||||||||||||||||||||||||||||
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Gross profit |
544,922 | 604,182 | 646,469 | 633,129 | 2,428,702 | 418,168 | 513,862 | 571,471 | 99,199 | 1,602,700 | ||||||||||||||||||||||||||||||
As a % of net sales |
37.6 | % | 36.9 | % | 37.4 | % | 39.3 | % | 37.8 | % | 34.8 | % | 33.3 | % | 33.8 | % | 5.9 | % | 26.2 | % | ||||||||||||||||||||
Selling, general and administrative expenses |
405,314 | 384,289 | 385,291 | 403,123 | 1,578,017 | 370,215 | 311,729 | 382,384 | 495,706 | 1,560,034 | ||||||||||||||||||||||||||||||
As a % of net sales |
28.0 | % | 23.5 | % | 22.3 | % | 25.0 | % | 24.6 | % | 30.8 | % | 20.2 | % | 22.6 | % | 29.3 | % | 25.5 | % | ||||||||||||||||||||
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Operating profit (loss) |
139,608 | 219,893 | 261,178 | 230,006 | 850,685 | 47,953 | 202,133 | 189,087 | (396,507 | ) | 42,666 | |||||||||||||||||||||||||||||
As a % of net sales |
9.6 | % | 13.4 | % | 15.1 | % | 14.3 | % | 13.2 | % | 4.0 | % | 13.1 | % | 11.2 | % | (23.5 | )% | 0.7 | % | ||||||||||||||||||||
Other expenses |
7,166 | 7,952 | 7,772 | 7,311 | 30,201 | 6,101 | 4,653 | 4,898 | 5,003 | 20,655 | ||||||||||||||||||||||||||||||
Interest expense, net |
47,803 | 46,296 | 42,272 | 40,553 | 176,924 | 36,027 | 41,075 | 43,500 | 43,636 | 164,238 | ||||||||||||||||||||||||||||||
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Income (loss) from continuing operations before income tax expense |
84,639 | 165,645 | 211,134 | 182,142 | 643,560 | 5,825 | 156,405 | 140,689 | (445,146 | ) | (142,227 | ) | ||||||||||||||||||||||||||||
Income tax expense (benefit) |
8,984 | 15,595 | 22,129 | 23,528 | 70,236 | 707 | 19,837 | 22,464 | (152,948 | ) | (109,940 | ) | ||||||||||||||||||||||||||||
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Income (loss) from continuing operations |
75,655 | 150,050 | 189,005 | 158,614 | 573,324 | 5,118 | 136,568 | 118,225 | (292,198 | ) | (32,287 | ) | ||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax |
5,433 | (495 | ) | (3,914 | ) | 26,372 | 27,396 | (12,992 | ) | 24,613 | (14,947 | ) | (39,966 | ) | (43,292 | ) | ||||||||||||||||||||||||
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Net income (loss) |
$ | 81,088 | $ | 149,555 | $ | 185,091 | $ | 184,986 | $ | 600,720 | $ | (7,874 | ) | $ | 161,181 | $ | 103,278 | $ | (332,164 | ) | $ | (75,579 | ) | |||||||||||||||||
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Earnings (loss) per share - basic: |
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Continuing operations |
$ | 0.21 | $ | 0.41 | $ | 0.52 | $ | 0.43 | $ | 1.57 | $ | 0.01 | $ | 0.39 | $ | 0.34 | $ | (0.83 | ) | $ | (0.09 | ) | ||||||||||||||||||
Discontinued operations |
0.01 | 0.00 | (0.01 | ) | 0.07 | 0.08 | (0.04 | ) | 0.07 | (0.04 | ) | (0.11 | ) | (0.12 | ) | |||||||||||||||||||||||||
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Net income (loss) |
$ | 0.22 | $ | 0.41 | $ | 0.51 | $ | 0.51 | $ | 1.65 | $ | (0.02 | ) | $ | 0.46 | $ | 0.29 | $ | (0.95 | ) | $ | (0.21 | ) | |||||||||||||||||
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Earnings (loss) per share - diluted: |
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Continuing operations |
$ | 0.21 | $ | 0.41 | $ | 0.52 | $ | 0.43 | $ | 1.57 | $ | 0.01 | $ | 0.39 | $ | 0.34 | $ | (0.83 | ) | $ | (0.09 | ) | ||||||||||||||||||
Discontinued operations |
0.01 | 0.00 | (0.01 | ) | 0.07 | 0.07 | (0.04 | ) | 0.07 | (0.04 | ) | (0.11 | ) | (0.12 | ) | |||||||||||||||||||||||||
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Net income (loss) |
$ | 0.22 | $ | 0.41 | $ | 0.51 | $ | 0.51 | $ | 1.64 | $ | (0.02 | ) | $ | 0.46 | $ | 0.29 | $ | (0.95 | ) | $ | (0.21 | ) | |||||||||||||||||
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Weighted average shares outstanding: |
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Basic |
364,570 | 364,637 | 364,743 | 364,885 | 364,709 | 359,017 | 350,538 | 350,703 | 350,807 | 352,766 | ||||||||||||||||||||||||||||||
Diluted |
365,299 | 365,537 | 365,597 | 365,644 | 365,519 | 359,436 | 350,829 | 351,604 | 350,807 | 352,766 |
4
TABLE 2
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Condensed Consolidated Statements of Income - As ADJUSTED
(in thousands, except per share data)
(Unaudited)
Quarters Ended | Year Ended | Quarters Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
March 30, 20191 |
June 29, 20191 |
September 28, 20191 |
December 28, 20191 |
December 28, 20191 |
March 28, 2020 |
June 27, 2020 |
September 26, 2020 |
January 2, 2021 |
January 2, 2021 |
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Net sales, as adjusted |
$ | 1,355,583 | $ | 1,517,999 | $ | 1,610,610 | $ | 1,522,077 | $ | 6,006,269 | $ | 1,203,070 | $ | 1,543,083 | $ | 1,691,863 | $ | 1,689,145 | $ | 6,127,161 | ||||||||||||||||||||
Cost of sales, as adjusted |
823,076 | 936,557 | 991,123 | 901,224 | 3,651,980 | 763,091 | 1,010,803 | 1,072,793 | 1,007,156 | 3,853,843 | ||||||||||||||||||||||||||||||
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Gross profit, as adjusted |
532,507 | 581,442 | 619,487 | 620,853 | 2,354,289 | 439,979 | 532,280 | 619,070 | 681,989 | 2,273,318 | ||||||||||||||||||||||||||||||
As a % of net sales |
39.3 | % | 38.3 | % | 38.5 | % | 40.8 | % | 39.2 | % | 36.6 | % | 34.5 | % | 36.6 | % | 40.4 | % | 37.1 | % | ||||||||||||||||||||
Selling, general and administrative expenses, as adjusted |
392,646 | 374,577 | 375,738 | 392,987 | 1,535,948 | 367,702 | 297,868 | 377,726 | 453,160 | 1,496,456 | ||||||||||||||||||||||||||||||
As a % of net sales |
29.0 | % | 24.7 | % | 23.3 | % | 25.8 | % | 25.6 | % | 30.6 | % | 19.3 | % | 22.3 | % | 26.8 | % | 24.4 | % | ||||||||||||||||||||
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Operating profit, as adjusted |
139,861 | 206,865 | 243,749 | 227,866 | 818,341 | 72,277 | 234,412 | 241,344 | 228,829 | 776,862 | ||||||||||||||||||||||||||||||
As a % of net sales |
10.3 | % | 13.6 | % | 15.1 | % | 15.0 | % | 13.6 | % | 6.0 | % | 15.2 | % | 14.3 | % | 13.5 | % | 12.7 | % | ||||||||||||||||||||
Other expenses |
7,166 | 7,952 | 7,772 | 7,311 | 30,201 | 6,101 | 4,653 | 4,898 | 5,003 | 20,655 | ||||||||||||||||||||||||||||||
Interest expense, net |
47,803 | 46,296 | 42,272 | 40,553 | 176,924 | 36,027 | 41,075 | 43,500 | 43,636 | 164,238 | ||||||||||||||||||||||||||||||
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Income from continuing operations before income tax expense, as adjusted |
84,892 | 152,617 | 193,705 | 180,002 | 611,216 | 30,149 | 188,684 | 192,946 | 180,190 | 591,969 | ||||||||||||||||||||||||||||||
Income tax expense, as adjusted |
9,019 | 13,758 | 19,670 | 38,319 | 80,766 | 4,233 | 26,532 | 32,937 | 31,700 | 95,402 | ||||||||||||||||||||||||||||||
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Income from continuing operations, as adjusted |
$ | 75,873 | $ | 138,859 | $ | 174,035 | $ | 141,683 | $ | 530,450 | $ | 25,916 | $ | 162,152 | $ | 160,009 | $ | 148,490 | $ | 496,567 | ||||||||||||||||||||
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Earnings per share - basic: |
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Continuing operations, as adjusted |
$ | 0.21 | $ | 0.38 | $ | 0.48 | $ | 0.39 | $ | 1.45 | $ | 0.07 | $ | 0.46 | $ | 0.46 | $ | 0.42 | $ | 1.41 | ||||||||||||||||||||
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Earnings per share - diluted: |
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Continuing operations, as adjusted |
$ | 0.21 | $ | 0.38 | $ | 0.48 | $ | 0.39 | $ | 1.45 | $ | 0.07 | $ | 0.46 | $ | 0.46 | $ | 0.42 | $ | 1.40 | ||||||||||||||||||||
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Weighted average shares outstanding: |
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Basic |
364,570 | 364,637 | 364,743 | 364,885 | 364,709 | 359,017 | 350,538 | 350,703 | 350,807 | 352,766 | ||||||||||||||||||||||||||||||
Diluted |
365,299 | 365,537 | 365,597 | 365,644 | 365,519 | 359,436 | 350,829 | 351,604 | 351,933 | 353,451 |
1 | Results for the quarters ended March 30, 2019, June 29, 2019, September 28, 2019, December 28, 2019 and year ended December 28, 2019 reflect adjustments for the exited C9 Champion mass program and the DKNY intimate apparel license. |
5
TABLE 3
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
Quarter Ended March 28, 2020 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
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As reported |
$ | 418,168 | $ | (370,215 | ) | $ | 47,953 | $ | 5,825 | $ | (707 | ) | $ | 5,118 | $ | 0.01 | ||||||||||||
As a percentage of net sales |
34.8 | % | 30.8 | % | 4.0 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
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Supply chain actions |
14,065 | | 14,065 | 14,065 | | 14,065 | 0.04 | |||||||||||||||||||||
Program exit costs |
7,746 | 467 | 8,213 | 8,213 | | 8,213 | 0.02 | |||||||||||||||||||||
Other restructuring costs |
| 2,046 | 2,046 | 2,046 | | 2,046 | 0.01 | |||||||||||||||||||||
Tax effect on actions |
| | | | (3,526 | ) | (3,526 | ) | (0.01 | ) | ||||||||||||||||||
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Total restructuring and other action-related charges |
21,811 | 2,513 | 24,324 | 24,324 | (3,526 | ) | 20,798 | 0.06 | ||||||||||||||||||||
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As adjusted |
$ | 439,979 | $ | (367,702 | ) | $ | 72,277 | $ | 30,149 | $ | (4,233 | ) | $ | 25,916 | $ | 0.07 | ||||||||||||
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As a percentage of net sales |
36.6 | % | 30.6 | % | 6.0 | % |
Quarter Ended March 30, 2019 | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
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As reported |
$ | 1,449,687 | $ | 544,922 | $ | (405,314 | ) | $ | 139,608 | $ | 84,639 | $ | (8,984 | ) | $ | 75,655 | $ | 0.21 | ||||||||||||||
Less exited programs2 |
(94,104 | ) | (29,888 | ) | 8,965 | (20,923 | ) | (20,923 | ) | 2,950 | (17,973 | ) | (0.05 | ) | ||||||||||||||||||
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As rebased |
1,355,583 | 515,034 | (396,349 | ) | 118,685 | 63,716 | (6,034 | ) | 57,682 | 0.16 | ||||||||||||||||||||||
As a percentage of net sales |
38.0 | % | 29.2 | % | 8.8 | % | ||||||||||||||||||||||||||
Restructuring and other action-related charges: |
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Supply chain actions |
| 17,473 | | 17,473 | 17,473 | | 17,473 | 0.05 | ||||||||||||||||||||||||
Other restructuring costs |
| | 3,703 | 3,703 | 3,703 | | 3,703 | 0.01 | ||||||||||||||||||||||||
Tax effect on actions |
| | | | | (2,985 | ) | (2,985 | ) | (0.01 | ) | |||||||||||||||||||||
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Total restructuring and other action-related charges |
| 17,473 | 3,703 | 21,176 | 21,176 | (2,985 | ) | 18,191 | 0.05 | |||||||||||||||||||||||
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As adjusted |
$ | 1,355,583 | $ | 532,507 | $ | (392,646 | ) | $ | 139,861 | $ | 84,892 | $ | (9,019 | ) | $ | 75,873 | $ | 0.21 | ||||||||||||||
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As a percentage of net sales |
39.3 | % | 29.0 | % | 10.3 | % |
1 | Amounts may not be additive due to rounding. |
2 | Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license. |
6
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
Quarter Ended June 27, 2020 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
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As reported |
$ | 513,862 | $ | (311,729 | ) | $ | 202,133 | $ | 156,405 | $ | (19,837 | ) | $ | 136,568 | $ | 0.39 | ||||||||||||
As a percentage of net sales |
33.3 | % | 20.2 | % | 13.1 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
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Supply chain actions |
2,637 | | 2,637 | 2,637 | | 2,637 | 0.01 | |||||||||||||||||||||
Program exit costs |
1,285 | | 1,285 | 1,285 | | 1,285 | 0.00 | |||||||||||||||||||||
Other restructuring costs |
(373 | ) | 4,443 | 4,070 | 4,070 | | 4,070 | 0.01 | ||||||||||||||||||||
COVID-19 related charges: |
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Bad debt |
| 9,418 | 9,418 | 9,418 | | 9,418 | 0.03 | |||||||||||||||||||||
Inventory |
14,869 | | 14,869 | 14,869 | | 14,869 | 0.04 | |||||||||||||||||||||
Tax effect on actions |
| | | | (6,695 | ) | (6,695 | ) | (0.02 | ) | ||||||||||||||||||
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Total restructuring and other action-related charges |
18,418 | 13,861 | 32,279 | 32,279 | (6,695 | ) | 25,584 | 0.07 | ||||||||||||||||||||
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As adjusted |
$ | 532,280 | $ | (297,868 | ) | $ | 234,412 | $ | 188,684 | $ | (26,532 | ) | $ | 162,152 | $ | 0.46 | ||||||||||||
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As a percentage of net sales |
34.5 | % | 19.3 | % | 15.2 | % |
Quarter Ended June 29, 2019 | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
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As reported |
$ | 1,636,709 | $ | 604,182 | $ | (384,289 | ) | $ | 219,893 | $ | 165,645 | $ | (15,595 | ) | $ | 150,050 | $ | 0.41 | ||||||||||||||
Less exited programs2 |
(118,710 | ) | (35,169 | ) | 9,712 | (25,457 | ) | (25,457 | ) | 3,590 | (21,867 | ) | (0.06 | ) | ||||||||||||||||||
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|
|
|
|
|
|||||||||||||||||
As rebased |
1,517,999 | 569,013 | (374,577 | ) | 194,436 | 140,188 | (12,005 | ) | 128,183 | 0.35 | ||||||||||||||||||||||
As a percentage of net sales |
37.5 | % | 24.7 | % | 12.8 | % | ||||||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||||||
Supply chain actions |
| 12,429 | | 12,429 | 12,429 | | 12,429 | 0.03 | ||||||||||||||||||||||||
Tax effect on actions |
| | | | | (1,753 | ) | (1,753 | ) | 0.00 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total restructuring and other action-related charges |
| 12,429 | | 12,429 | 12,429 | (1,753 | ) | 10,676 | 0.03 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As adjusted |
$ | 1,517,999 | $ | 581,442 | $ | (374,577 | ) | $ | 206,865 | $ | 152,617 | $ | (13,758 | ) | $ | 138,859 | $ | 0.38 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As a percentage of net sales |
38.3 | % | 24.7 | % | 13.6 | % |
1 | Amounts may not be additive due to rounding. |
2 | Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license. |
7
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
Quarter Ended September 26, 2020 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
||||||||||||||||||||||
As reported |
$ | 571,471 | $ | (382,384 | ) | $ | 189,087 | $ | 140,689 | $ | (22,464 | ) | $ | 118,225 | $ | 0.34 | ||||||||||||
As a percentage of net sales |
33.8 | % | 22.6 | % | 11.2 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||
Supply chain actions |
2,098 | | 2,098 | 2,098 | | 2,098 | 0.01 | |||||||||||||||||||||
Program exit costs |
356 | | 356 | 356 | | 356 | 0.00 | |||||||||||||||||||||
Other restructuring costs |
(4 | ) | 1,199 | 1,195 | 1,195 | | 1,195 | 0.00 | ||||||||||||||||||||
COVID-19 related charges: |
||||||||||||||||||||||||||||
Supply chain re-startup |
45,149 | 3,459 | 48,608 | 48,608 | | 48,608 | 0.14 | |||||||||||||||||||||
Discrete tax benefits |
| | | | (3,113 | ) | (3,113 | ) | (0.01 | ) | ||||||||||||||||||
Tax effect on actions |
| | | | (7,360 | ) | (7,360 | ) | (0.02 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total restructuring and other action-related charges |
47,599 | 4,658 | 52,257 | 52,257 | (10,473 | ) | 41,784 | $ | 0.12 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As adjusted |
$ | 619,070 | $ | (377,726 | ) | $ | 241,344 | $ | 192,946 | $ | (32,937 | ) | $ | 160,009 | $ | 0.46 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As a percentage of net sales |
36.6 | % | 22.3 | % | 14.3 | % |
Quarter Ended September 28, 2019 | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
|||||||||||||||||||||||||
As reported |
$ | 1,729,308 | $ | 646,469 | $ | (385,291 | ) | $ | 261,178 | $ | 211,134 | $ | (22,129 | ) | $ | 189,005 | $ | 0.52 | ||||||||||||||
Less exited programs2 |
(118,698 | ) | (36,290 | ) | 9,018 | (27,272 | ) | (27,272 | ) | 3,848 | (23,424 | ) | (0.06 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As rebased |
1,610,610 | 610,179 | (376,273 | ) | 233,906 | 183,862 | (18,281 | ) | 165,581 | 0.45 | ||||||||||||||||||||||
As a percentage of net sales |
37.9 | % | 23.4 | % | 14.5 | % | ||||||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||||||
Supply chain actions |
| 9,308 | | 9,308 | 9,308 | | 9,308 | 0.03 | ||||||||||||||||||||||||
Other restructuring costs |
| | 535 | 535 | 535 | | 535 | 0.00 | ||||||||||||||||||||||||
Tax effect on actions |
| | | | | (1,389 | ) | (1,389 | ) | 0.00 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total restructuring and other action-related charges |
| 9,308 | 535 | 9,843 | 9,843 | (1,389 | ) | 8,454 | 0.02 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As adjusted |
$ | 1,610,610 | $ | 619,487 | $ | (375,738 | ) | $ | 243,749 | $ | 193,705 | $ | (19,670 | ) | $ | 174,035 | $ | 0.48 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As a percentage of net sales |
38.5 | % | 23.3 | % | 15.1 | % |
1 | Amounts may not be additive due to rounding. |
2 | Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license. |
8
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
Quarter Ended January 2, 2021 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit (Loss) |
Income (Loss) From Continuing Operations Before Income Tax Expense |
Income Tax Benefit (Expense) |
Income (Loss) From Continuing Operations |
Diluted Earnings (Loss) Per Share From Continuing Operations1 |
||||||||||||||||||||||
As reported |
$ | 99,199 | $ | (495,706 | ) | $ | (396,507 | ) | $ | (445,146 | ) | $ | 152,948 | $ | (292,198 | ) | $ | (0.83 | ) | |||||||||
As a percentage of net sales |
5.9 | % | 29.3 | % | (23.5 | )% | ||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||
Supply chain actions |
836 | | 836 | 836 | | 836 | 0.00 | |||||||||||||||||||||
Other restructuring costs |
(63 | ) | 515 | 452 | 452 | | 452 | 0.00 | ||||||||||||||||||||
COVID-19 related charges: |
||||||||||||||||||||||||||||
Intangibles assets and goodwill |
| 25,173 | 25,173 | 25,173 | | 25,173 | 0.07 | |||||||||||||||||||||
Full Potential plan: |
||||||||||||||||||||||||||||
Inventory SKU rationalization |
192,704 | | 192,704 | 192,704 | | 192,704 | 0.55 | |||||||||||||||||||||
PPE inventory write-off |
362,913 | | 362,913 | 362,913 | | 362,913 | 1.03 | |||||||||||||||||||||
PPE vendor commitments |
26,400 | | 26,400 | 26,400 | | 26,400 | 0.08 | |||||||||||||||||||||
Write-off of acquisition tax asset |
| 16,858 | 16,858 | 16,858 | | 16,858 | 0.05 | |||||||||||||||||||||
Discrete tax benefits |
| | | | (66,515 | ) | (66,515 | ) | (0.19 | ) | ||||||||||||||||||
Tax effect on actions |
| | | | (118,133 | ) | (118,133 | ) | (0.34 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total restructuring and other action-related charges |
582,790 | 42,546 | 625,336 | 625,336 | (184,648 | ) | 440,688 | 1.25 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As adjusted |
$ | 681,989 | $ | (453,160 | ) | $ | 228,829 | $ | 180,190 | $ | (31,700 | ) | $ | 148,490 | $ | 0.42 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As a percentage of net sales |
40.4 | % | 26.8 | % | 13.5 | % |
Quarter Ended December 28, 2019 | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
|||||||||||||||||||||||||
As reported |
$ | 1,610,012 | $ | 633,129 | $ | (403,123 | ) | $ | 230,006 | $ | 182,142 | $ | (23,528 | ) | $ | 158,614 | $ | 0.43 | ||||||||||||||
Less exited programs2 |
(87,935 | ) | (30,514 | ) | 9,307 | (21,207 | ) | (21,207 | ) | 1,241 | (19,966 | ) | (0.05 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As rebased |
1,522,077 | 602,615 | (393,816 | ) | 208,799 | 160,935 | (22,287 | ) | 138,648 | 0.38 | ||||||||||||||||||||||
As a percentage of net sales |
39.6 | % | 25.9 | % | 13.7 | % | ||||||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||||||
Supply chain actions |
| 13,622 | | 13,622 | 13,622 | | 13,622 | 0.04 | ||||||||||||||||||||||||
Program exit costs |
| 4,616 | | 4,616 | 4,616 | | 4,616 | 0.01 | ||||||||||||||||||||||||
Other restructuring costs |
| | 829 | 829 | 829 | | 829 | 0.00 | ||||||||||||||||||||||||
Tax effect on actions |
| | | | | (16,032 | ) | (16,032 | ) | (0.04 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total restructuring and other action-related charges |
| 18,238 | 829 | 19,067 | 19,067 | (16,032 | ) | 3,035 | 0.01 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As adjusted |
$ | 1,522,077 | $ | 620,853 | $ | (392,987 | ) | $ | 227,866 | $ | 180,002 | $ | (38,319 | ) | $ | 141,683 | $ | 0.39 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As a percentage of net sales |
40.8 | % | 25.8 | % | 15.0 | % |
1 | Amounts may not be additive due to rounding. |
2 | Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license. |
9
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
Year Ended January 2, 2021 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income (Loss) From Continuing Operations Before Income Tax Expense |
Income Tax Benefit (Expense) |
Income (Loss) From Continuing Operations |
Diluted Earnings (Loss) Per Share From Continuing Operations1 |
||||||||||||||||||||||
As reported |
$ | 1,602,700 | $ | (1,560,034 | ) | $ | 42,666 | $ | (142,227 | ) | $ | 109,940 | $ | (32,287 | ) | $ | (0.09 | ) | ||||||||||
As a percentage of net sales |
26.2 | % | 25.5 | % | 0.7 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||
Supply chain actions |
19,636 | | 19,636 | 19,636 | | 19,636 | 0.06 | |||||||||||||||||||||
Program exit costs |
9,387 | 467 | 9,854 | 9,854 | | 9,854 | 0.03 | |||||||||||||||||||||
Other restructuring costs |
(440 | ) | 8,203 | 7,763 | 7,763 | | 7,763 | 0.02 | ||||||||||||||||||||
COVID-19 related charges: |
||||||||||||||||||||||||||||
Supply chain re-startup |
45,149 | 3,459 | 48,608 | 48,608 | | 48,608 | 0.14 | |||||||||||||||||||||
Bad debt |
| 9,418 | 9,418 | 9,418 | | 9,418 | 0.03 | |||||||||||||||||||||
Inventory |
14,869 | | 14,869 | 14,869 | | 14,869 | 0.04 | |||||||||||||||||||||
Intangibles assets and goodwill |
| 25,173 | 25,173 | 25,173 | | 25,173 | 0.07 | |||||||||||||||||||||
Full Potential plan: |
||||||||||||||||||||||||||||
Inventory SKU rationalization |
192,704 | | 192,704 | 192,704 | | 192,704 | 0.55 | |||||||||||||||||||||
PPE inventory write-off |
362,913 | | 362,913 | 362,913 | | 362,913 | 1.03 | |||||||||||||||||||||
PPE vendor commitments |
26,400 | | 26,400 | 26,400 | | 26,400 | 0.07 | |||||||||||||||||||||
Write-off of acquisition tax asset |
| 16,858 | 16,858 | 16,858 | | 16,858 | 0.05 | |||||||||||||||||||||
Discrete tax benefits |
| | | | (69,628 | ) | (69,628 | ) | (0.20 | ) | ||||||||||||||||||
Tax effect on actions |
| | | | (135,714 | ) | (135,714 | ) | (0.38 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total restructuring and other action-related charges |
670,618 | 63,578 | 734,196 | 734,196 | (205,342 | ) | 528,854 | 1.50 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As adjusted |
$ | 2,273,318 | $ | (1,496,456 | ) | $ | 776,862 | $ | 591,969 | $ | (95,402 | ) | $ | 496,567 | $ | 1.40 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As a percentage of net sales |
37.1 | % | 24.4 | % | 12.7 | % |
Year Ended December 28, 2019 | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
|||||||||||||||||||||||||
As reported |
$ | 6,425,716 | $ | 2,428,702 | $ | (1,578,017 | ) | $ | 850,685 | $ | 643,560 | $ | (70,236 | ) | $ | 573,324 | $ | 1.57 | ||||||||||||||
Less exited programs2 |
(419,447 | ) | (131,861 | ) | 37,002 | (94,859 | ) | (94,859 | ) | 11,629 | (83,230 | ) | (0.23 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As rebased |
6,006,269 | 2,296,841 | (1,541,015 | ) | 755,826 | 548,701 | (58,607 | ) | 490,094 | 1.34 | ||||||||||||||||||||||
As a percentage of net sales |
38.2 | % | 25.7 | % | 12.6 | % | ||||||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||||||
Supply chain actions |
| 52,832 | | 52,832 | 52,832 | | 52,832 | 0.14 | ||||||||||||||||||||||||
Program exit costs |
| 4,616 | | 4,616 | 4,616 | | 4,616 | 0.01 | ||||||||||||||||||||||||
Other restructuring costs |
| | 5,067 | 5,067 | 5,067 | | 5,067 | 0.01 | ||||||||||||||||||||||||
Tax effect on actions |
| | | | | (22,159 | ) | (22,159 | ) | (0.06 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total restructuring and other action-related charges |
| 57,448 | 5,067 | 62,515 | 62,515 | (22,159 | ) | 40,356 | 0.11 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As adjusted |
$ | 6,006,269 | $ | 2,354,289 | $ | (1,535,948 | ) | $ | 818,341 | $ | 611,216 | $ | (80,766 | ) | $ | 530,450 | $ | 1.45 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As a percentage of net sales |
39.2 | % | 25.6 | % | 13.6 | % |
1 | Amounts may not be additive due to rounding. |
2 | Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license. |
10
HANESBRANDS INC.
Reconciliation of Select GAAP Measures to Non-GAAP Measures and Supplemental Financial Information
(in thousands, except per share data)
(Unaudited)
The key components from discontinued operations related to the European Innerwear business are as follows:
Quarters Ended | Year Ended | Quarters Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
March 30, 2019 |
June 29, 2019 |
September 28, 2019 |
December 28, 2019 |
December 28, 2019 |
March 28, 2020 |
June 27, 2020 |
September 26, 2020 |
January 2, 2021 |
January 2, 2021 |
|||||||||||||||||||||||||||||||
Net sales |
$ | 155,351 | $ | 138,044 | $ | 150,143 | $ | 155,010 | $ | 598,548 | $ | 127,671 | $ | 205,591 | $ | 125,913 | $ | 139,147 | $ | 598,322 | ||||||||||||||||||||
Operating profit (loss), as calculated under GAAP |
$ | 10,036 | $ | 9,707 | $ | 5,893 | $ | 13,409 | $ | 39,045 | $ | (13,823 | ) | $ | 39,403 | $ | (14,516 | ) | $ | (47,229 | ) | $ | (36,165 | ) | ||||||||||||||||
Restructuring and other action-related charges |
197 | 180 | 94 | 500 | 971 | 4,875 | 31,017 | 312 | 35,387 | 71,591 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Operating profit (loss), as adjusted |
$ | 10,233 | $ | 9,887 | $ | 5,987 | $ | 13,909 | $ | 40,016 | $ | (8,948 | ) | $ | 70,420 | $ | (14,204 | ) | $ | (11,842 | ) | $ | 35,426 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Income (loss) from discontinued operations, net of tax, as reported |
$ | 5,433 | $ | (495 | ) | $ | (3,914 | ) | $ | 26,372 | $ | 27,396 | $ | (12,992 | ) | $ | 24,613 | $ | (14,947 | ) | $ | (39,966 | ) | $ | (43,292 | ) | ||||||||||||||
Restructuring and other action-related charges |
197 | 180 | 94 | 500 | 971 | 4,875 | 31,017 | 312 | 35,387 | 71,591 | ||||||||||||||||||||||||||||||
Tax effect on actions |
(28 | ) | (25 | ) | (13 | ) | (277 | ) | (343 | ) | (708 | ) | (5,720 | ) | 1,736 | (8,978 | ) | (13,670 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Income (loss) from discontinued operations, net of tax, as adjusted |
$ | 5,602 | $ | (340 | ) | $ | (3,833 | ) | $ | 26,595 | $ | 28,024 | $ | (8,825 | ) | $ | 49,910 | $ | (12,899 | ) | $ | (13,557 | ) | $ | 14,629 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Diluted earnings (loss) per share from discontinued operations, as reported1 |
$ | 0.01 | $ | 0.00 | $ | (0.01 | ) | $ | 0.07 | $ | 0.07 | $ | (0.04 | ) | $ | 0.07 | $ | (0.04 | ) | $ | (0.11 | ) | $ | (0.12 | ) | |||||||||||||||
Restructuring and other action-related charges |
0.00 | $ | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.07 | 0.01 | 0.08 | 0.16 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Diluted earnings (loss) per share from discontinued operations, as adjusted |
$ | 0.02 | $ | 0.00 | $ | (0.01 | ) | $ | 0.07 | $ | 0.08 | $ | (0.02 | ) | $ | 0.14 | $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.04 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 | Amounts may not be additive due to rounding. |
11
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Supplemental Financial Information - As REPORTED
(in thousands)
(Unaudited)
Quarters Ended | Year Ended | |||||||||||||||||||
March 28, 2020 |
June 27, 2020 |
September 26, 2020 |
January 2, 2021 |
January 2, 2021 |
||||||||||||||||
Segment net sales: |
||||||||||||||||||||
Innerwear |
$ | 422,402 | $ | 1,094,814 | $ | 792,600 | $ | 668,193 | $ | 2,978,009 | ||||||||||
Activewear |
288,000 | 168,379 | 324,921 | 403,113 | 1,184,413 | |||||||||||||||
International |
428,230 | 251,285 | 506,203 | 525,714 | 1,711,432 | |||||||||||||||
Other |
64,438 | 28,605 | 68,139 | 92,125 | 253,307 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net sales |
$ | 1,203,070 | $ | 1,543,083 | $ | 1,691,863 | $ | 1,689,145 | $ | 6,127,161 | ||||||||||
|
|
|
|
|
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|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment operating profit (loss): |
||||||||||||||||||||
Innerwear |
$ | 81,551 | $ | 304,524 | $ | 172,000 | $ | 160,848 | $ | 718,923 | ||||||||||
Activewear |
8,108 | (5,751 | ) | 29,568 | 35,718 | 67,643 | ||||||||||||||
International |
50,745 | 5,162 | 101,029 | 92,782 | 249,718 | |||||||||||||||
Other |
(3,393 | ) | (11,929 | ) | 3,059 | 2,123 | (10,140 | ) | ||||||||||||
General corporate expenses/other |
(64,734 | ) | (57,594 | ) | (64,312 | ) | (62,642 | ) | (249,282 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit before restructuring and other action-related charges |
72,277 | 234,412 | 241,344 | 228,829 | 776,862 | |||||||||||||||
Restructuring and other action-related charges |
(24,324 | ) | (32,279 | ) | (52,257 | ) | (625,336 | ) | (734,196 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit (loss) |
$ | 47,953 | $ | 202,133 | $ | 189,087 | $ | (396,507 | ) | $ | 42,666 | |||||||||
|
|
|
|
|
|
|
|
|
|
Quarters Ended | Year Ended | |||||||||||||||||||
March 30, 2019 |
June 29, 2019 |
September 28, 2019 |
December 28, 2019 |
December 28, 2019 |
||||||||||||||||
Segment net sales: |
||||||||||||||||||||
Innerwear |
$ | 475,945 | $ | 678,604 | $ | 578,453 | $ | 569,630 | $ | 2,302,632 | ||||||||||
Activewear |
405,340 | 448,277 | 548,117 | 452,970 | 1,854,704 | |||||||||||||||
International |
490,829 | 430,819 | 513,382 | 495,798 | 1,930,828 | |||||||||||||||
Other |
77,573 | 79,009 | 89,356 | 91,614 | 337,552 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net sales |
$ | 1,449,687 | $ | 1,636,709 | $ | 1,729,308 | $ | 1,610,012 | $ | 6,425,716 | ||||||||||
|
|
|
|
|
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|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment operating profit: |
||||||||||||||||||||
Innerwear |
$ | 104,626 | $ | 149,530 | $ | 121,467 | $ | 140,368 | $ | 515,991 | ||||||||||
Activewear |
43,593 | 68,779 | 97,314 | 71,633 | 281,319 | |||||||||||||||
International |
84,776 | 66,490 | 94,908 | 85,148 | 331,322 | |||||||||||||||
Other |
2,435 | 7,994 | 12,898 | 10,112 | 33,439 | |||||||||||||||
General corporate expenses/other |
(74,646 | ) | (60,471 | ) | (55,566 | ) | (58,188 | ) | (248,871 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit before restructuring and other action related charges |
160,784 | 232,322 | 271,021 | 249,073 | 913,200 | |||||||||||||||
Restructuring and other action-related charges |
(21,176 | ) | (12,429 | ) | (9,843 | ) | (19,067 | ) | (62,515 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit |
$ | 139,608 | $ | 219,893 | $ | 261,178 | $ | 230,006 | $ | 850,685 | ||||||||||
|
|
|
|
|
|
|
|
|
|
12
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Supplemental Financial Information - As ADJUSTED
(in thousands)
(Unaudited)
Quarters Ended | Year Ended | |||||||||||||||||||
March 28, 2020 |
June 27, 2020 |
September 26, 2020 |
January 2, 2021 |
January 2, 2021 |
||||||||||||||||
Segment net sales: |
||||||||||||||||||||
Innerwear |
$ | 422,402 | $ | 1,094,814 | $ | 792,600 | $ | 668,193 | $ | 2,978,009 | ||||||||||
Activewear |
288,000 | 168,379 | 324,921 | 403,113 | 1,184,413 | |||||||||||||||
International |
428,230 | 251,285 | 506,203 | 525,714 | 1,711,432 | |||||||||||||||
Other |
64,438 | 28,605 | 68,139 | 92,125 | 253,307 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net sales |
$ | 1,203,070 | $ | 1,543,083 | $ | 1,691,863 | $ | 1,689,145 | $ | 6,127,161 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment operating profit (loss): |
||||||||||||||||||||
Innerwear |
$ | 81,551 | $ | 304,524 | $ | 172,000 | $ | 160,848 | $ | 718,923 | ||||||||||
Activewear |
8,108 | (5,751 | ) | 29,568 | 35,718 | 67,643 | ||||||||||||||
International |
50,745 | 5,162 | 101,029 | 92,782 | 249,718 | |||||||||||||||
Other |
(3,393 | ) | (11,929 | ) | 3,059 | 2,123 | (10,140 | ) | ||||||||||||
General corporate expenses/other |
(64,734 | ) | (57,594 | ) | (64,312 | ) | (62,642 | ) | (249,282 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit, as adjusted |
$ | 72,277 | $ | 234,412 | $ | 241,344 | $ | 228,829 | $ | 776,862 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Quarters Ended | Year Ended | |||||||||||||||||||
March 30, 20191 |
June 29, 20191 |
September 28, 20191 |
December 28, 20191 |
December 28, 20191 |
||||||||||||||||
Segment net sales: |
||||||||||||||||||||
Innerwear |
$ | 466,414 | $ | 657,477 | $ | 562,285 | $ | 558,302 | $ | 2,244,478 | ||||||||||
Activewear |
320,767 | 350,694 | 445,587 | 376,363 | 1,493,411 | |||||||||||||||
International |
490,829 | 430,819 | 513,382 | 495,798 | 1,930,828 | |||||||||||||||
Other |
77,573 | 79,009 | 89,356 | 91,614 | 337,552 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net sales, as adjusted |
$ | 1,355,583 | $ | 1,517,999 | $ | 1,610,610 | $ | 1,522,077 | $ | 6,006,269 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment operating profit: |
||||||||||||||||||||
Innerwear |
$ | 103,126 | $ | 146,997 | $ | 117,771 | $ | 137,945 | $ | 505,839 | ||||||||||
Activewear |
24,170 | 45,855 | 73,738 | 52,849 | 196,612 | |||||||||||||||
International |
84,776 | 66,490 | 94,908 | 85,148 | 331,322 | |||||||||||||||
Other |
2,435 | 7,994 | 12,898 | 10,112 | 33,439 | |||||||||||||||
General corporate expenses/other |
(74,646 | ) | (60,471 | ) | (55,566 | ) | (58,188 | ) | (248,871 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating profit, as adjusted |
$ | 139,861 | $ | 206,865 | $ | 243,749 | $ | 227,866 | $ | 818,341 | ||||||||||
|
|
|
|
|
|
|
|
|
|
1 | Results for the quarters ended March 30, 2019, June 29, 2019, September 28, 2019, December 28, 2019 and year ended December 28, 2019 reflect adjustments for the exited C9 Champion mass program and the DKNY intimate apparel license. |
13
TABLE 4
HANESBRANDS INC.
Supplemental Financial Information
Reconciliation of GAAP Outlook to Adjusted Outlook
(in millions, except per share data)
(Unaudited)
First Quarter 2021 |
HBI Continuing Operations - Adjusted |
European Innerwear - Adjusted1 |
HBI Adjusted incl. European Innerwear2 |
Company Guidance Adjusted3 |
Charges - Continuing Operations |
European Innerwear - Discontinued Operations |
HBI GAAP | Company Guidance - GAAP | ||||||||||||||||||||
Net sales |
$ | 1,508 | $ | 125 | $ | 1,633 | $1,485 to $1,515 | $ | | $ | (125 | ) | $ | 1,508 | $1,485 to $1,515 | |||||||||||||
Operating profit (loss) |
$ | 210 | $ | (7 | ) | $ | 203 | $150 to $160 | $ | (19 | ) | $ | 7 | $ | 190 | $140 to $150 | ||||||||||||
Diluted earnings (loss) per share |
$ | 0.39 | $ | (0.02 | ) | $ | 0.37 | $0.24 to $0.27 | $ | (0.02 | ) | $ | (1.11 | ) | $ | (0.75 | ) | $0.24 to $0.27 |
1 | Includes elimination of intercompany supply chain sales to the European Innerwear business of $ 11 million included in net sales from continuing operations. |
2 | Comparable to February 9, 2021 guidance and May 10, 2021 consensus estimates. |
3 | Provided February 9, 2021, first quarter 2021 only. |
Quarter Ended | Year Ended | |||
July 3, 2021 |
January 1, 2022 | |||
Operating profit outlook, as calculated under GAAP |
$179 to $189 | $730 to $760 | ||
Restructuring and other action-related charges |
$21 | $85 | ||
|
| |||
Operating profit outlook, as adjusted |
$200 to $210 | $815 to $845 | ||
|
| |||
Diluted earnings per share from continuing operations, as calculated under GAAP1 |
$0.32 to $0.35 | $1.33 to $1.41 | ||
Restructuring and other action-related charges |
$0.05 | $0.18 | ||
|
| |||
Diluted earnings per share from continuing operations, as adjusted |
$0.37 to $0.40 | $1.51 to $1.59 | ||
|
|
1 | The company expects approximately 352 million diluted weighted average shares outstanding for the quarter ended July 3, 2021 and approximately 353 million diluted weighted average shares outstanding for the year ended January 1, 2022. |
14
Appendix
15
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
TABLE 5
The following table presents a reconciliation of International reported net sales on a constant currency basis for the quarter ended April 3, 2021 and a comparison to prior year:
Quarter Ended April 3, 2021 | Quarter Ended March 28, 2020 |
% Change, As Reported |
% Change, Constant Currency |
|||||||||||||||||||||
As Reported | Impact from Foreign Currency1 |
Constant Currency |
||||||||||||||||||||||
As reported under GAAP: |
||||||||||||||||||||||||
International segment net sales |
$ | 506,261 | $ | 43,073 | $ | 463,188 | $ | 428,230 | 18.2 | % | 8.2 | % |
The following tables present a reconciliation of reported results to adjusted results for the quarters ended April 3, 2021 and March 28, 2020:
Quarter Ended April 3, 2021 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
||||||||||||||||||||||
As reported |
$ | 602,681 | $ | (412,559 | ) | $ | 190,122 | $ | 143,101 | $ | (14,697 | ) | $ | 128,404 | $ | 0.37 | ||||||||||||
As a percentage of net sales |
40.0 | % | 27.4 | % | 12.6 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||
Full Potential Plan: |
||||||||||||||||||||||||||||
Professional services |
| 11,706 | 11,706 | 11,706 | | 11,706 | 0.03 | |||||||||||||||||||||
Impairment of intangible assets |
| 7,302 | 7,302 | 7,302 | | 7,302 | 0.02 | |||||||||||||||||||||
Other |
2,807 | (2,422 | ) | 385 | 385 | | 385 | | ||||||||||||||||||||
Discrete tax benefit |
| | | | (7,295 | ) | (7,295 | ) | (0.02 | ) | ||||||||||||||||||
Tax effect on actions |
| | | | (4,007 | ) | (4,007 | ) | (0.01 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total restructuring and other action-related charges |
2,807 | 16,586 | 19,393 | 19,393 | (11,302 | ) | 8,091 | 0.02 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As adjusted |
$ | 605,488 | $ | (395,973 | ) | $ | 209,515 | $ | 162,494 | $ | (25,999 | ) | $ | 136,495 | $ | 0.39 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As a percentage of net sales |
40.2 | % | 26.3 | % | 13.9 | % | ||||||||||||||||||||||
Quarter Ended March 28, 2020 | ||||||||||||||||||||||||||||
Gross Profit | Selling, General and Administrative Expenses |
Operating Profit |
Income From Continuing Operations Before Income Tax Expense |
Income Tax Expense |
Income From Continuing Operations |
Diluted Earnings Per Share From Continuing Operations1 |
||||||||||||||||||||||
As reported |
$ | 418,168 | $ | (370,215 | ) | $ | 47,953 | $ | 5,825 | $ | (707 | ) | $ | 5,118 | $ | 0.01 | ||||||||||||
As a percentage of net sales |
34.8 | % | 30.8 | % | 4.0 | % | ||||||||||||||||||||||
Restructuring and other action-related charges: |
||||||||||||||||||||||||||||
Supply chain actions |
14,065 | | 14,065 | 14,065 | | 14,065 | 0.04 | |||||||||||||||||||||
Program exit costs |
7,746 | 467 | 8,213 | 8,213 | | 8,213 | 0.02 | |||||||||||||||||||||
Other restructuring costs |
| 2,046 | 2,046 | 2,046 | | 2,046 | 0.01 | |||||||||||||||||||||
Tax effect on actions |
| | | | (3,526 | ) | (3,526 | ) | (0.01 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total restructuring and other action-related charges |
21,811 | 2,513 | 24,324 | 24,324 | (3,526 | ) | 20,798 | 0.06 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As adjusted |
$ | 439,979 | $ | (367,702 | ) | $ | 72,277 | $ | 30,149 | $ | (4,233 | ) | $ | 25,916 | $ | 0.07 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As a percentage of net sales |
36.6 | % | 30.6 | % | 6.0 | % |
1 | Amounts may not be additive due to rounding. |
16
HANESBRANDS INC.
Including European Innerwear Business as Discontinued Operations
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
Years Ended | ||||||||
January 2, 20211 |
January 1, 20221,2 |
|||||||
Free cash flow: |
||||||||
Net cash from operating activities |
$ | 448,469 | $ | 525,000 | ||||
Capital expenditures |
(53,735 | ) | (140,000 | ) | ||||
|
|
|
|
|||||
Free cash flow |
$ | 394,734 | $ | 385,000 | ||||
|
|
|
|
1 | Free cash flow includes the results from continuing and discontinued operations. |
2 | Represents the 2021 outlook for free cash flow. |
Hanesbrands is unable to reconcile projections of financial performance beyond 2021 without unreasonable efforts, because the company cannot predict, with a reasonable degree of certainty, the type and extent of certain items that would be expected to impact these figures in 2022 and beyond, such as net sales, operating profit, tax rates and action related charges.
17