Champion Parent Company Hanesbrands Four Quarter Performance Exceeded Expectations

Rare super expected performance in recent years, stimulating the United States

Sportswear group

The share price of Inc. (NYSE:HBI) HBI jumped more than 20% on Thursday, and the most meritorious service was still leisure.

Champion champion.

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 by Champion brand as the main sales channel of the brand mass channel sales decreased by 3% in a single quarter.

According to the world clothing and shoe net, in August last year, HBI announced that it would end the exclusive C9 C9 series with Target Corp. (NYSE:TGT), Taghit, which sells about $380 million a year and contracts expire at the end of January 2020.

Tang Xiaotang, analyst at No Agency, 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 HBI holding analyst also 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 does not exclude the right to repurchase the Chinese market and raise the scale of revenue after reaching the sales target of US $2 billion.

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 Gerald W. 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. Half of US $1 billion 360 million - 680 million US dollars in the US market, of which only 30 million US dollars for underwear business, shows 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 0.48 after the adjusted US $7.7% decreased by 7.7% compared with the same period last year, but it was better than the expected US $0.47.

During the reporting period, HBI's revenue increased 7.5% to $1 billion 768 million 300 thousand, and the market was expected to be $1 billion 720 million, which was 1 billion 645 million 200 thousand US dollars 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 a 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's profit increased by 10.3% to $259 million 600 thousand after adjustment, and its operating profit margin improved by 40 basis points to 14.7% after adjustment.

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 to 3.4 times to 3.3 times, while net debt rose slightly to $3 billion 547 million 600 thousand.

Champion's strong performance in stimulating sports business recorded a 13.5% increase in revenue in the fourth quarter to $485 million 400 thousand. Meanwhile, the fourth quarter sales of the lingerie sector, which made 1/3 sales, including traditional brands such as Hanes, Maidenform and Bali, were 0.1% down compared to the same period last year, a big improvement, a 6.9% decline in the previous quarter, and 11.7% to 608 million 900 thousand dollars in the international business period.

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 the year of 2018, HBI achieved the first organic sales growth in four years. The annual growth rate was 2%, the actual growth rate was 5.1%, from 6 billion 471 million 400 thousand US dollars to 6 billion 804 million US dollars. It was mainly stimulated by the sports department and international business, and the two sector sales recorded an annual increase of 8.3% and 14.1% respectively.

HBI gross profit rose by 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 EPS is expected to grow 7% to 1.59-1.67 dollars, and 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.

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

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