A Look at Hanesbrands (HBI) Valuation After Quarterly Earnings Miss and Flat Sales Growth

Hanesbrands (NYSE:HBI) reported quarterly earnings with flat sales compared to the previous year, falling a bit short of Wall Street’s expectations. Adjusted earnings per share also missed the mark, which caught investors’ attention.

See our latest analysis for Hanesbrands.

After a rocky earnings update, Hanesbrands' share price has been on a rollercoaster, surging more than 32% over the last 90 days but still posting a 1-year total shareholder return of -20%. This recent momentum suggests traders are reacting to both operational challenges and a few positive signs, with long-term investors still cautious given the significant multi-year drawdown.

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With Hanesbrands’ shares surging recently despite flat sales and earnings misses, investors are left wondering whether there is real value being overlooked here, or if the market is already pricing in any future rebound.

Most Popular Narrative: 2% Undervalued

With Hanesbrands’ fair value narrative coming in slightly above the latest closing price, there is an emerging sense that the market could be missing some upside. The small discount, coupled with strategic M&A talk, is driving renewed interest in where the shares might go from here.

Bullish analysts highlight the expected acceleration of EPS growth following the acquisition, driven by revenue expansion and tangible cost synergies between Gildan Activewear and Hanesbrands. The combination is viewed as a strong strategic fit, pairing market leadership in activewear and retail innerwear to create a more powerful force in the apparel sector.

Read the complete narrative.

What’s the math behind this “undervalued” label? The narrative leans on bold assumptions about profit margins, rising earnings, and a future price multiple well below rivals. Could Hanesbrands’ path to value be hiding in plain sight? Click in to see how these forecasts add up, and what it means for investors if they’re right.

Result: Fair Value of $6.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on cost cuts or continued softness in core categories could quickly challenge optimism around Hanesbrands’ recovery narrative.

Find out about the key risks to this Hanesbrands narrative.

Build Your Own Hanesbrands Narrative

If you see things differently or want to dig into the data on your own terms, you can shape your own view in just a few minutes. So why not Do it your way

A great starting point for your Hanesbrands research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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