HBI
Hanesbrands Inc
Consumer
11/14/2022
Presented
| Date | 11/10/2022 |
| Price | $6.80 |
| Market Cap | $2.37B |
| Ent Value | $6.59B |
| P/E Ratio | 6.79x |
| Book Value | $1.93 |
| Div Yield | 6.62% |
| Shares O/S | 348.94M |
| Ave Daily Vol | 8,988,664 |
| Short Int | 15.77% |
Current
| Price | $7.37 |
| Market Cap | $2.59B |
| Hanesbrands, Inc. is a consumer goods company, which engages in the design, manufacture, sourcing, and sale of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia Pacific. It operates through the following three segments: Innerwear, Activewear, and International. The Innerwear segment includes core apparel products, such as men's underwear, women's panties, children's underwear, socks and intimate apparel, sold in the United States (US). The Activewear segment consists of activewear products, such as T-shirts, fleece, performance apparel, sport shirts and thermals, sold in the US. The International segment comprises innerwear, activewear, hosiery and home goods products, sold outside of the US. Its brands include Hanes, Champion, Bonds, Maidenform, DIM, Bali, Playtex, Bras N Things, Nur Die/Nur Der, Alternative, L'eggs, JMS/Just My Size, Lovable, Wonderbra, Berlei, and Gear for Sports. The company was founded by J. Wesley Hanes in 1901 and is headquartered in Winston-Salem, NC. |
Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK.B), Dick’s Sporting Goods Inc (DKS), Gildan Activewear Inc (GIL), Hanesbrands Inc (HBI), Walmart Inc (WMT)
Highlights
The presenter is short shares of Hanesbrands Inc (HBI), a clothing and apparel company with brands including Hanes, Champion, Bonds, Bali, Maidenform, Playtex, Bras N Things, Just My Size, Alternative, Berlei, Wonderbra, Gear for Sports, and Comfortwash. Its business mix by category is ~60% innerwear (underwear, bras, etc.) and ~40% activewear, and it generates 30% of revenues from international markets. Innerwear is considered a stable business and activewear is viewed as a growing category due to increasing consumer focus on health and outdoors. However, the presenter notes that HBI is facing secular headwinds and is poorly positioned relative to other brands. It reported weak Q3 results on November 9th, including a topline miss and Q4 guidance that came in 13% below consensus. Consensus forecasts for next year have started to come down, but he thinks current estimates are still too high. As HBI misses on expectations, he models a base case price target of $4 per share, down from the current $7.
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