Jan 27, 2010
Hanesbrands fourth quarter adjusted profit in-line
Jan 27, 2010
Jan 27 (Reuters) - Hanesbrands Inc (HBI.N) posted adjusted quarterly profit in line with market expectations and said its capital structure would enable the innerwear maker to consider acquisition opportunities.
Champion USA, a Hanesbrand Inc brand - www.championusa.com
The company also reaffirmed its 2010 sales outlook of 5 percent growth, helped by significant shelf-space and distribution gains.
"When you combine the benefits of expected sales growth, operating margin improvement, and lower interest expense, we could see EPS growth of at least 25 percent and possibly up to 35 percent or more in 2010," Chief Executive Richard Noll said in a statement.
Hanesbrands, which recently resumed its Haitian sewing operations, posted a net loss for the fourth quarter, hurt by higher costs.
It suffered a net loss of $1.1 million, or 1 cent per share, for the period ended Jan. 3, compared with a net income of $17.9 million, or 19 cents a share, a year ago.
Excluding items, Hanesbrands earned 56 cents a share.
Revenue of the company, whose brands include Hanes, Champion, Playtex and Wonderbra, rose 1 percent to $988.7 million, after adjusting for company's extra week last year.
Analysts on average had expected earnings of 56 cents per share on revenue of $984.7 million, according to Thomson Reuters I/B/E/S.
Hanesbrands also said it expects interest expense to fall by $20 million to $25 million in 2010 due to deleveraging.
Shares of the Winston-Salem, North Carolina-based company closed at $23.16 Wednesday 27 January on the New York Stock Exchange. (Reporting by Shobhana Chadha in Bangalore; Editing by Gopakumar Warrier)
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