Champion Sales Rose To The Highest Level In The Fourth Quarter.

In recent years, the rare super expected performance has stimulated the US underwear and sportswear group HanesBrands Inc. (NYSE:HBI) (HBI) shares surged by more than 20% on Thursday, and the biggest hero is still the Champion champion of the leisure sports brand that turns the tide.

Fourth quarter, excluding public channels, Champion global business increased by 50% over the same period last year, the fixed exchange rate rose by 50%, the ratio quickening 1000 basis points, while the C9 byChampion brand as the main sales channel of the brand mass channel sales decreased by 3% in a single quarter.

In August of last year, HBI announced that it will end the exclusive C9 series of Target Corp. (NYSE:TGT) Taghit, which is about $380 million a year. The contract will expire at the end of January 2020.

No Agency analyst Tang Xiaotang said on Thursday that he reiterated the optimistic outlook for Champion, saying that the brand will become one of the most potential brands in the next five years with the help of the Chinese market.

The analyst with HBI long said that Champion's rapid expansion in the mainland market is expected to bring huge profits to the brand. With its stability in the Chinese market, it will not exclude the right to repurchase the Chinese market after raising its sales target of 2 billion US dollars, so as to increase the scale of revenue.

HBI's chief financial officer, Barry A. Hytinen, said at the performance conference that the brand recorded a fixed exchange rate growth of 33% in the fourth quarter, excluding the C9 series, and the annual brand realized a sales of $1 billion 360 million. The fixed exchange rate rose 36% compared with the $1 billion in 2017.

In response to analysts' questions, chief executive GeraldW. Evans said that in 2019, the brand was expected to continue to grow at a rate of 30%, and the sales target of $2 billion was achieved in 2020.

Barry Hytinen says Champion's business is very balanced, and half of the $1 billion 360 million - $680 million occurs in the US market, of which only $30 million is underwear business, indicating that the brand is already almost an integral part of the group's US market movement business.

In 2018, the group's US market movement business income was $760 million.

As of the four quarter of December 29th, HBI recorded a net profit of $161 million 600 thousand or earnings per share of $0.44, a net loss of $384 million 600 thousand or earnings per share of -1.06 dollars in the same period last year. The adjusted EPS of 0.48 US dollars decreased by 7.7% compared with 0.52 a year earlier, but it was better than the market expected US $0.47.

During the reporting period, HBI revenue recorded an increase of 7.5% to US $1 billion 768 million 300 thousand, and the market was expected to be US $1 billion 720 million, which was US $1 billion 645 million 200 thousand in the same period last year. The fixed exchange rate increased by 6%, achieving a positive performance for six consecutive quarters.

During the period, the direct investment channel recorded a fixed exchange rate increase of 20%, which increased to 25%.

In its statement, Gerald Evans praised the strong performance in the four quarter, saying that it enjoyed organic growth, profit margin expansion, operating profit growth of two figures, strong cash flow, and a sharp decline in debt and leverage ratio.

In the fourth quarter, HBI adjusted its operating profit to 10.3% US dollars to 259 million 600 thousand US dollars and adjusted its operating profit margin by 40 basis points to 14.7%.

In the fourth quarter, the group achieved a record operating cash flow of $502 million in the single quarter, with a free cash flow of $643 million 400 thousand a year.

In the second half of the year, the group repaid $500 million in debt, and adjusted the net debt /EBITDA ratio from 3.4 times to 3.3 times, while net debt rose slightly to $3 billion 547 million 600 thousand.

Champion strongly showed that the revenue of stimulating sports business increased to 13.5% US dollars in the fourth quarter. At the same time, the fourth quarter sales of the American underwear department, which made 1/3 sales for the group, including traditional brands such as Hanes, Maidenform and Bali, declined by 0.1% compared with the same period last year. The sales volume has been greatly improved, the decline in the previous quarter has reached 6.9%, and the income in the international business period has increased by 11.7% to 608 million 900 thousand US dollars in the international business period. The Champion has made a big difference in the fourth quarter sales.

In the fourth quarter, the operating profit of underwear business increased to $134 million, which was $133 million 600 thousand in the same period last year, and the operating profit margin improved to 22.6%.

Underwear is still worse than basic money. Only Maidenform brand has accelerated growth to achieve double-digit growth.

Business activity increased by 3.8% to $78 million 28 thousand in the four quarter.

In fiscal year 2018, HBI achieved organic sales growth for the first time in four years, an annual increase of 2%, an increase of 5.1% in real terms, from 6 billion 471 million 400 thousand US dollars to 6 billion 804 million US dollars. It was mainly stimulated by sports departments and international businesses, and sales of two sectors increased by 8.3% and 14.1% respectively.

HBI year-round net profit rose 793.6%, from $61 million 894 thousand to $553 million 100 thousand, and earnings per share increased from $0.17 to $1.52. After adjustment, $1.71 declined by 12% compared with $1.93 in 2018.

The US group now expects revenue growth of 2% to 68.85-69.85 billion in the current fiscal year, operating profit increased by 5% to 9.00-9.30 billion, the adjusted operating profit is expected to grow 2% to 9.55-9.85 billion, EPS is expected to grow 7% to 1.59-1.67 dollars, adj EPS is expected to grow 3% to 1.72-1.80 dollars.

HBI also expects adjusted earnings per share of 0.24-0.26 US dollars in the first quarter, earning 15.2-15.5 billion US dollars.

HanesBrands Inc. (NYSE:HBI) shares closed at $18.71 a day on Thursday, surging 20.17%, trading volume nearly five times, and expanding so far this year to nearly 50%, but in the past year, the stock still recorded a decline of more than 4%.