HanesBrands to Highlight Innovate-to-Elevate and Cash-Deployment Strategies
at Investor Day Meeting
Company Reaffirms all Full-Year 2014 Guidance Issued Jan. 29, 2014
Investor Day Meeting to be Webcast Live at 9 a.m. Thursday, Feb. 27, 2014
WINSTON-SALEM, N.C. -- February 26, 2014
HanesBrands (NYSE: HBI), a leading marketer of everyday basic apparel under
world-class brands, will highlight its margin-enhancing Innovate-to-Elevate
strategy and priorities for use of cash flow at the company’s investor day
meeting Thursday, Feb. 27.
Hanes’ Innovate-to-Elevate strategy harnesses the company’s industry-leading
brand power, innovation platforms, and low-cost supply chain to drive
profitability improvement. Hanes has increased its adjusted operating profit
margin by 400 basis points over the past five years using the
Innovate-to-Elevate strategy to increase shelf space, gain market share, lower
costs, internalize production of higher-volume programs, and introduce
The company’s innovation platforms include Flexible Fit bras that utilize
Smart Size technology, ComfortBlend fabric used in numerous Innerwear and
Activewear categories, X-Temp evaporation-control fabric being rolled out in
Innerwear, and Vapor quick-dry fabric used in Activewear products.
Hanes has also generated $1.9 billion in cumulative cash from operations over
the past five years. In 2013, the company completed its debt prepayment
initiative, instituted a regular quarterly cash dividend, and acquired
Maidenform Brands, Inc. The company’s priority for future cash deployment will
be additional acquisitions that meet stringent criteria to generate value.
Hanes has also reaffirmed all of its full-year 2014 guidance issued Jan. 29,
2014, including expectations for net sales of slightly less than $5.1 billion,
adjusted operating profit excluding actions of $640 million to $660 million,
adjusted EPS excluding actions of $4.60 to $4.80, and net cash from operating
activities of $450 million to $550 million.
“We had a record year in 2013, and our guidance calls for another record year
in 2014,” Hanes Chairman and Chief Executive Officer Richard A. Noll said.
“Our Innovate-to-Elevate strategy is working very well, and we have ample
opportunities to generate additional value by applying it to more parts of our
business, to our recently acquired Maidenform brand, and to future
acquisitions. When you consider the potential earnings leverage from
additional bolt-on acquisitions, we believe we are very well positioned to
produce continued double-digit earnings growth for many years to come.”
Investor Day Webcast
The company’s investor day meeting, which will be held at the company’s New
York City showroom offices for registered participants, will start at 9 a.m.
EST Thursday. A live Internet webcast of management’s presentation may be
accessed on the Hanes corporate website at www.Hanes.com/investors. The
presentation is expected to conclude by 11 a.m.
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 Hanes website. A link to an archived
audio replay of the webcast will also be available.
Reconciliation to GAAP Measures
Adjusted EPS excluding actions and adjusted operating profit (and margin)
excluding actions are not generally accepted accounting principle measures.
Hanes has chosen to provide these non-GAAP measures to investors to enable
additional analyses of past, present and future operating performance absent
the effect of acquisition-related expenses and other actions and as a
supplemental means of evaluating company operations. Non-GAAP measures 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.
For 2014 guidance, adjusted EPS is defined as diluted EPS excluding actions
and the tax effect on actions, and adjusted operating profit is defined as
operating profit excluding actions. Hanes’ current estimate for pretax charges
in 2014 for acquisition and other actions is approximately $70 million to $100
million or more, but actual charges could vary significantly.
On a GAAP basis, full-year 2014 diluted EPS will vary depending on actual
performance, charges and tax rate. GAAP diluted EPS could be in the range of
$3.80 to $4.30. GAAP operating profit for 2014 could be in the range of $540
million to $590 million.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain “forward-looking statements,” as defined
under U.S. federal securities laws, with respect to our long-term goals and
trends associated with our business, as well as guidance as to future
performance. In particular, among others, statements following the heading
“Reconciliation to GAAP Measures,” as well as statements about the benefits
anticipated from the Maidenform acquisition, are forward-looking statements.
These forward-looking statements are based on our current intent, beliefs,
plans and expectations. Readers are cautioned not to place any undue reliance
on any forward-looking statements. Forward-looking statements necessarily
involve risks and uncertainties, many of which are outside of our control,
that could cause actual results to differ materially from such statements and
from our historical results and experience. These risks and uncertainties
include such things as: the impact of significant fluctuations and volatility
in various input costs, such as cotton and oil-related materials, utilities,
freight and wages; the failure of businesses we acquire to perform to
expectations; current economic conditions, including consumer spending levels
and the price elasticity of our products; legal, regulatory, political and
economic risks associated with our operations in international markets,
including the risk of significant fluctuations in foreign exchange rates; the
highly competitive and evolving nature of the industry in which we compete;
unanticipated business disruptions or the loss of one or more suppliers in our
global supply chain; our ability to effectively manage our inventory and
reduce inventory reserves; 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 and quarterly reports on Form 10-Q, as well as in the
investors section of our corporate website at www.Hanes.com/investors. Since
it is not possible to predict or identify all of the risks, uncertainties and
other factors that may affect future results, the above list should not be
considered a complete list. Any forward-looking statement speaks only as of
the date on which such statement is made, and HanesBrands undertakes no
obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise, other than as required
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, Maidenform, Flexees, JMS/Just My Size, barely there,
Wonderbra and Gear for Sports. The company sells T-shirts, bras, panties,
shapewear, men’s underwear, children’s underwear, socks, hosiery, and
activewear produced in the company’s low-cost global supply chain. Ranked No.
512 on the Fortune 1000 list, Hanes has approximately 49,700 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 2013 and 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 at
News Media, contact:
Matt Hall, 336-519-3386
Analysts and Investors, contact:
T.C. Robillard, 336-519-2115
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