Hanesbrands (HBI) Is Up 18.9% After Strong Q2 Results and Raised Full-Year Guidance – What's Changed

• Hanesbrands announced its second-quarter 2025 results, reporting US$991.33 million in sales and a net income of US$81.61 million, reversing the prior year’s net loss, and also raised its full-year revenue and profit guidance.
• This marks the third consecutive quarter where earnings exceeded expectations, reflecting ongoing margin improvement and enhanced profitability tied to transformation initiatives and cost-saving efforts.
• We’ll examine how Hanesbrands’ improved outlook and continuing margin gains shape its investment narrative going forward.

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Hanesbrands Investment Narrative Recap

To own Hanesbrands, investors need to believe in the company’s ability to sustain earnings recovery and margin progress through efficiency efforts, while navigating slow revenue growth in mature categories and shifting retail dynamics. The recent Q2 results, marking stronger-than-expected profitability and another upward revision to full-year guidance, boost confidence in execution, though ongoing strength or weakness in U.S. Innerwear remains the key short-term catalyst and dominant risk; this announcement, while favorable, does not materially alter those realities.

A key relevant announcement is Hanesbrands’ raised 2025 guidance for revenue and GAAP earnings per share, now expecting net sales of approximately US$3.53 billion and EPS of about US$0.59. This outlook underscores management’s continued focus on operational transformation and margin expansion, both central to near-term performance, but does not diminish the risk from potential softness in core categories driving overall results.

By contrast, investors should be aware that persistent category weakness, particularly in U.S. Innerwear, could impact the...

Read the full narrative on Hanesbrands (it's free!)

Hanesbrands' outlook anticipates $3.5 billion in revenue and $240.3 million in earnings by 2028. This is based on a forecast revenue decline of 0.2% per year and an earnings increase of $291.3 million from current earnings of -$51.0 million.

Uncover how Hanesbrands' forecasts yield a $7.80 fair value, a 61% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provide fair value estimates for Hanesbrands ranging from US$1.54 to US$8.03, highlighting diverse opinions from three perspectives. With updated corporate guidance supporting margin improvement, you can see how diverging views reflect both optimism about transformation initiatives and concern over risks in key segments.

Explore 3 other fair value estimates on Hanesbrands - why the stock might be worth less than half the current price!

Build Your Own Hanesbrands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hanesbrands research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hanesbrands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hanesbrands' overall financial health at a glance.

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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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