HanesBrands to Highlight Innovate-to-Elevate Strategy and Use of Free Cash Flow at Investor Day Meeting

  HanesBrands to Highlight Innovate-to-Elevate Strategy and Use of Free Cash
  Flow at Investor Day Meeting

Company Reaffirms all Full-Year 2013 Guidance Issued Feb. 5, 2013

Business Wire

WINSTON-SALEM, N.C. -- February 27, 2013

HanesBrands (NYSE: HBI), a leading marketer of everyday branded basic apparel,
will highlight its margin-enhancing Innovate-to-Elevate strategy and expected
use of free cash flows in 2014 and beyond at the company’s investor day
meeting, Thursday, Feb. 28.

Hanes’ Innovate-to-Elevate strategy integrates the company’s brand
superiority, industry-leading innovation and low-cost supply chain to provide
higher valued products while lowering production costs. The company’s Tagless
apparel platform, Smart Sizes bra platform and ComfortBlend fabric platform
incorporate big-idea innovation to span brands, product categories, business
segments, retailer and distribution channels, and geographies.

The Innovate-to-Elevate strategy provides the company the opportunity to
increase its annual operating margin into the range of 12 percent to 14
percent over time.

Hanes today also is reaffirming all of its full-year 2013 guidance issued Feb.
5, 2013, including expectations for net sales of approximately $4.6 billion,
operating profit of $500 million to $550 million, EPS of $3.25 to $3.40, and
free cash flow of $350 million to $450 million.

Hanes expects to continue to generate significant levels of free cash flow
with normalized annual free cash flow of approximately $400 million increasing
as profitability rises.

Regarding uses of free cash flow, the company is developing a cash deployment
strategy as it completes its planned debt reduction in 2013. While the company
has not determined specific details or timing, Hanes expects its cash
deployment strategy will include a mix of dividends, low-risk bolt-on
acquisitions and share repurchases.

“Leveraging our consumer franchise, driving our margin-enhancing
Innovate-to-Elevate strategy, and being good stewards of our cash flow should
allow us to substantially increase earnings per share over time and drive
superior shareholder returns for many years to come,” Hanes Chairman and Chief
Executive Officer Richard A. Noll said.

Management will also discuss at its investor day meeting tactics to return
International segment growth to historical levels over time.

The company’s investor day meeting at company headquarters in Winston-Salem
will start at 9 a.m. EST Thursday. A live Internet webcast of management’s
presentations may be accessed on the Hanes corporate website at
www.HanesBrands.com and is expected to last approximately 2½ hours.

For those unable to attend the meeting or listen to the webcast, a document
with speaker presentation slides and corresponding speaker remarks will be
available in the investors section of the website at
http://tiny.cc/HanesBrandsIR. A link to an archived replay of the webcast will
also be available.

Note on Non-GAAP Terms and Definitions

Free cash flow is not a generally accepted accounting principle measure. Free
cash flow is defined as net cash from operating activities less net capital
expenditures. Free cash flow may not be representative of the amount of
residual cash flow that is available to the company for discretionary
expenditures since it may not include deductions for mandatory debt-service
requirements and other nondiscretionary expenditures.

The company believes, however, that free cash flow is a useful measure of the
cash-generating ability of the business relative to capital expenditures and
financial performance.

Non-GAAP information, such as free cash flow, should not be considered a
substitute for financial information presented in accordance with GAAP and may
be different from non-GAAP or other pro forma measures used by other
companies.

Cautionary Statement Concerning Forward-Looking Statements

Statements in this press release that are not statements of historical fact
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
including those regarding our long-term goals and trends associated with our
business, as well as guidance as to future performance. Examples of such
statements include the statements included in this press release with respect
to multiyear performance objectives. These and other forward-looking
statements are made only as of the date of this press release and are based on
our current intent, beliefs, plans and expectations. They involve risks and
uncertainties that could cause actual future results, performance or
developments to differ materially from those described in or implied by such
forward-looking statements. These risks and uncertainties include the
following: current economic conditions, including consumer spending levels and
the price elasticity of our products; the impact of significant fluctuations
and volatility in various input costs, such as cotton and oil-related
materials, utilities, freight and wages; the highly competitive and evolving
nature of the industry in which we compete; financial difficulties experienced
by, or loss of or reduction in sales to, any of our top customers or groups of
customers; our ability to successfully manage social, political, economic,
legal and other conditions affecting our domestic and foreign operations and
supply-chain sources, such as political instability and acts of war or
terrorism, natural disasters, disruption of markets, operational disruptions,
changes in import and export laws, currency restrictions and currency exchange
rate fluctuations; the impact of the loss of one or more of our suppliers of
finished goods or raw materials; our ability to effectively manage our
inventory and reduce inventory reserves; our ability to optimize our global
supply chain; our ability to continue to effectively distribute our products
through our distribution network; the risk of significant fluctuations in
foreign currency exchange rates; the impact of customers requiring products on
an exclusive basis or other forms of economic support; our ability to
accurately forecast demand for our products; increasing pressure on margins;
our ability to keep pace with changing consumer preferences; the impact of any
inadequacy, interruption or failure with respect to our information technology
or any data security breach; our ability to protect our reputation and brand
images; our ability to protect our trademarks, copyrights and patents; risks
associated with our indebtedness, such as our debt service requirements, the
financial ratios our debt instruments require us to maintain and restrictions
on our operating and financial flexibility; market returns on the plan assets
of our pension plans; the impact of a significant decline in the fair value of
the intangible assets and goodwill on our balance sheet; unanticipated changes
in our tax rates or exposure to additional income tax liabilities or a change
in our ability to realize deferred tax benefits; our ability to comply with
environmental and other laws and regulations; legal, regulatory, political and
economic risks associated with our operations in international markets; costs
and adverse publicity from violations of labor or environmental laws by us or
our suppliers; our ability to attract and retain key personnel; our ability to
integrate and grow acquisitions successfully; anti-takeover provisions our
charter and bylaws, as well as Maryland law and our stockholder rights
agreement; and other risks identified from time to time in our most recent
Securities and Exchange Commission reports, including our annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K,
registration statements, press releases and other communications, as well as
in the investors section of our corporate website at
http://tiny.cc/HanesBrandsIR. Except as required by law, the company
undertakes no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operating results over time.

HanesBrands

HanesBrands is a socially responsible leading marketer of everyday basic
apparel under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex, Bali, JMS/Just My Size, barely there, Wonderbra and Gear
for Sports. The company sells T-shirts, bras, panties, men’s underwear,
children’s underwear, socks, hosiery, casualwear and activewear produced in
the company’s low-cost global supply chain. Ranked No. 512 on the Fortune 1000
list, Hanes has approximately 51,500 employees in more than 25 countries and
takes pride in its strong reputation for ethical business practices. Hanes is
a U.S. Environmental Protection Agency Energy Star 2012 Sustained Excellence
Award winner and 2010 and 2011 Partner of the Year. The company ranks No. 141
on Newsweek magazine’s list of Top 500 greenest U.S. companies. More
information about the company and its corporate social responsibility
initiatives, including environmental, social compliance and community
improvement achievements, may be found on the Hanes corporate website at
www.hanesbrands.com.

Contact:

HanesBrands
News Media:
Matt Hall, 336-519-3386
or
Analysts and Investors:
Charlie Stack, 336-519-4710