Exhibit 99.3
Supplemental Information
Historical Financial Results
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
Fiscal Year 2022 thru Fiscal Year 2024
February 13, 2025
Table of Contents
In the second quarter of 2024, the Company reached the decision to exit the U.S.-based outlet store business and the global Champion business, excluding the Champion Japan business, and began to separately report the results of the global Champion and U.S.-based outlet store businesses as discontinued operations. In December 2024, the Company finalized plans to exit the Champion Japan business. The Company determined that the exit of the global Champion business, U.S.-based outlet store business and the Champion Japan business represent multiple components of a single strategic plan that met held-for-sale and discontinued operations accounting criteria prior to the period ending December 28, 2024. The historical financial information included herein for 2022, 2023 and 2024 has been revised to present the results of the Champion Japan business as discontinued operations along with the global Champion and U.S.-based outlet store businesses for all periods presented.
In addition, the Company realigned its reportable segments in the second quarter of 2024 and has applied this change to all periods presented. The Company’s operations are now managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: U.S. and International. Other consists of the Company’s U.S. Sheer Hosiery business which was sold on September 29, 2023 and certain sales from the Company’s supply chain and short term support / transition services agreements for disposed businesses.
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| Financial Tables | | | |
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| Table 1-A - Condensed Consolidated Statements of Operations, As REPORTED | | 3 | |
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| Table 1-B - Condensed Consolidated Statements of Operations - Continuing Operations, As ADJUSTED | | 4 | |
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| Table 2-A - Reconciliation of Select GAAP Measures to Non-GAAP Measures - Continuing Operations | | 5 | |
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Table 2-B - Reconciliation of Select GAAP Measures to Non-GAAP Measures - Discontinued Operations (Global Champion and U.S.-Based Outlet Store Businesses, including the Champion Japan business) | | 11 | |
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| Table 3 - Supplemental Financial Information by Business Segment - Continuing Operations | | 12 | |
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| Table 4-A - Impact of Foreign Currency - Continuing Operations (2024 only) | | 13 | |
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| Table 4-B - Organic Constant Currency - Continuing Operations (2024 only) | | 15 | |
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TABLE 1-A - As reported under GAAP
HANESBRANDS INC.
Condensed Consolidated Statements of Operations - As REPORTED
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Net sales | $ | 3,862,809 | | | $ | 849,314 | | | $ | 1,013,176 | | | $ | 926,613 | | | $ | 850,283 | | | $ | 3,639,386 | | | $ | 744,675 | | | $ | 973,927 | | | $ | 900,367 | | | $ | 888,469 | | | $ | 3,507,438 | |
| Cost of sales | 2,515,774 | | | 580,930 | | | 666,168 | | | 591,708 | | | 508,690 | | | 2,347,496 | | | 447,242 | | | 675,584 | | | 526,890 | | | 498,198 | | | 2,147,914 | |
| Gross profit | 1,347,035 | | | 268,384 | | | 347,008 | | | 334,905 | | | 341,593 | | | 1,291,890 | | | 297,433 | | | 298,343 | | | 373,477 | | | 390,271 | | | 1,359,524 | |
| As a % of net sales | 34.9 | % | | 31.6 | % | | 34.2 | % | | 36.1 | % | | 40.2 | % | | 35.5 | % | | 39.9 | % | | 30.6 | % | | 41.5 | % | | 43.9 | % | | 38.8 | % |
| Selling, general and administrative expenses | 1,079,664 | | | 243,848 | | | 277,220 | | | 257,390 | | | 247,154 | | | 1,025,612 | | | 262,019 | | | 361,546 | | | 279,440 | | | 270,571 | | | 1,173,576 | |
| As a % of net sales | 28.0 | % | | 28.7 | % | | 27.4 | % | | 27.8 | % | | 29.1 | % | | 28.2 | % | | 35.2 | % | | 37.1 | % | | 31.0 | % | | 30.5 | % | | 33.5 | % |
| Operating profit (loss) | 267,371 | | | 24,536 | | | 69,788 | | | 77,515 | | | 94,439 | | | 266,278 | | | 35,414 | | | (63,203) | | | 94,037 | | | 119,700 | | | 185,948 | |
| As a % of net sales | 6.9 | % | | 2.9 | % | | 6.9 | % | | 8.4 | % | | 11.1 | % | | 7.3 | % | | 4.8 | % | | (6.5) | % | | 10.4 | % | | 13.5 | % | | 5.3 | % |
| Other expenses | 8,294 | | | 14,709 | | | 7,046 | | | 8,911 | | | 7,095 | | | 37,761 | | | 9,062 | | | 10,616 | | | 9,343 | | | 18,420 | | | 47,441 | |
| Interest expense, net | 131,733 | | | 45,209 | | | 58,679 | | | 56,614 | | | 53,685 | | | 214,187 | | | 50,583 | | | 50,279 | | | 48,542 | | | 46,497 | | | 195,901 | |
| Income (loss) from continuing operations before income taxes | 127,344 | | | (35,382) | | | 4,063 | | | 11,990 | | | 33,659 | | | 14,330 | | | (24,231) | | | (124,098) | | | 36,152 | | | 54,783 | | | (57,394) | |
| Income tax expense (benefit) | 447,889 | | | 16,180 | | | 12,826 | | | 21,280 | | | (65,104) | | | (14,818) | | | 8,571 | | | 11,485 | | | 11,430 | | | 9,115 | | | 40,601 | |
| Income (loss) from continuing operations | (320,545) | | | (51,562) | | | (8,763) | | | (9,290) | | | 98,763 | | | 29,148 | | | (32,802) | | | (135,583) | | | 24,722 | | | 45,668 | | | (97,995) | |
| Income (loss) from discontinued operations, net of tax | 193,341 | | | 17,158 | | | (13,701) | | | (29,509) | | | (20,822) | | | (46,874) | | | (6,320) | | | (162,797) | | | 5,229 | | | (58,548) | | | (222,436) | |
| Net income (loss) | $ | (127,204) | | | $ | (34,404) | | | $ | (22,464) | | | $ | (38,799) | | | $ | 77,941 | | | $ | (17,726) | | | $ | (39,122) | | | $ | (298,380) | | | $ | 29,951 | | | $ | (12,880) | | | $ | (320,431) | |
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| Earnings (loss) per share - basic: | | | | | | | | | | | | | | | | | | | | | |
| Continuing operations | $ | (0.92) | | | $ | (0.15) | | | $ | (0.03) | | | $ | (0.03) | | | $ | 0.28 | | | $ | 0.08 | | | $ | (0.09) | | | $ | (0.39) | | | $ | 0.07 | | | $ | 0.13 | | | $ | (0.28) | |
| Discontinued operations | 0.55 | | | 0.05 | | | (0.04) | | | (0.08) | | | (0.06) | | | (0.13) | | | (0.02) | | | (0.46) | | | 0.01 | | | (0.17) | | | (0.63) | |
| Net income (loss) | $ | (0.36) | | | $ | (0.10) | | | $ | (0.06) | | | $ | (0.11) | | | $ | 0.22 | | | $ | (0.05) | | | $ | (0.11) | | | $ | (0.85) | | | $ | 0.09 | | | $ | (0.04) | | | $ | (0.91) | |
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| Earnings (loss) per share - diluted: | | | | | | | | | | | | | | | | | | | | | |
| Continuing operations | $ | (0.92) | | | $ | (0.15) | | | $ | (0.03) | | | $ | (0.03) | | | $ | 0.28 | | | $ | 0.08 | | | $ | (0.09) | | | $ | (0.39) | | | $ | 0.07 | | | $ | 0.13 | | | $ | (0.28) | |
| Discontinued operations | 0.55 | | | 0.05 | | | (0.04) | | | (0.08) | | | (0.06) | | | (0.13) | | | (0.02) | | | (0.46) | | | 0.01 | | | (0.16) | | | (0.63) | |
| Net income (loss) | $ | (0.36) | | | $ | (0.10) | | | $ | (0.06) | | | $ | (0.11) | | | $ | 0.22 | | | $ | (0.05) | | | $ | (0.11) | | | $ | (0.85) | | | $ | 0.08 | | | $ | (0.04) | | | $ | (0.91) | |
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| Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | |
| Basic | 349,970 | | | 350,435 | | | 350,501 | | | 350,667 | | | 350,765 | | | 350,592 | | | 351,576 | | | 351,990 | | | 352,107 | | | 352,881 | | | 352,139 | |
| Diluted | 349,970 | | | 350,435 | | | 350,501 | | | 350,667 | | | 351,566 | | | 351,057 | | | 351,576 | | | 351,990 | | | 354,839 | | | 356,851 | | | 352,139 | |
TABLE 1-B - Continuing Operations, As Adjusted
HANESBRANDS INC.
Condensed Consolidated Statements of Operations - As ADJUSTED
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands, except per share data)
(Unaudited)
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| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Net sales | $ | 3,862,809 | | | $ | 849,314 | | | $ | 1,013,176 | | | $ | 926,613 | | | $ | 850,283 | | | $ | 3,639,386 | | | $ | 744,675 | | | $ | 973,927 | | | $ | 900,367 | | | $ | 888,469 | | | $ | 3,507,438 | |
| Cost of sales, as adjusted | 2,502,129 | | | 579,414 | | | 665,932 | | | 590,179 | | | 509,818 | | | 2,345,343 | | | 447,039 | | | 586,963 | | | 525,773 | | | 496,960 | | | 2,056,735 | |
| Gross profit, as adjusted | 1,360,680 | | | 269,900 | | | 347,244 | | | 336,434 | | | 340,465 | | | 1,294,043 | | | 297,636 | | | 386,964 | | | 374,594 | | | 391,509 | | | 1,450,703 | |
| As a % of net sales | 35.2 | % | | 31.8 | % | | 34.3 | % | | 36.3 | % | | 40.0 | % | | 35.6 | % | | 40.0 | % | | 39.7 | % | | 41.6 | % | | 44.1 | % | | 41.4 | % |
| Selling, general and administrative expenses, as adjusted | 1,038,667 | | | 242,355 | | | 260,761 | | | 256,209 | | | 245,641 | | | 1,004,966 | | | 247,253 | | | 261,133 | | | 261,612 | | | 265,534 | | | 1,035,532 | |
| As a % of net sales | 26.9 | % | | 28.5 | % | | 25.7 | % | | 27.7 | % | | 28.9 | % | | 27.6 | % | | 33.2 | % | | 26.8 | % | | 29.1 | % | | 29.9 | % | | 29.5 | % |
| Operating profit, as adjusted | 322,013 | | | 27,545 | | | 86,483 | | | 80,225 | | | 94,824 | | | 289,077 | | | 50,383 | | | 125,831 | | | 112,982 | | | 125,975 | | | 415,171 | |
| As a % of net sales | 8.3 | % | | 3.2 | % | | 8.5 | % | | 8.7 | % | | 11.2 | % | | 7.9 | % | | 6.8 | % | | 12.9 | % | | 12.5 | % | | 14.2 | % | | 11.8 | % |
| Other expenses, as adjusted | 8,294 | | | 6,359 | | | 7,046 | | | 8,911 | | | 7,095 | | | 29,411 | | | 9,062 | | | 10,616 | | | 9,343 | | | 9,008 | | | 38,029 | |
| Interest expense, net, as adjusted | 131,733 | | | 46,463 | | | 58,679 | | | 56,614 | | | 53,685 | | | 215,441 | | | 50,583 | | | 50,279 | | | 48,542 | | | 46,497 | | | 195,901 | |
| Income (loss) from continuing operations before income taxes, as adjusted | 181,986 | | | (25,277) | | | 20,758 | | | 14,700 | | | 34,044 | | | 44,225 | | | (9,262) | | | 64,936 | | | 55,097 | | | 70,470 | | | 181,241 | |
| Income tax expense, as adjusted | 34,123 | | | 16,180 | | | 12,826 | | | 25,543 | | | 15,755 | | | 70,304 | | | 8,571 | | | 11,485 | | | 11,430 | | | 9,115 | | | 40,601 | |
| Income (loss) from continuing operations, as adjusted | $ | 147,863 | | | $ | (41,457) | | | $ | 7,932 | | | $ | (10,843) | | | $ | 18,289 | | | $ | (26,079) | | | $ | (17,833) | | | $ | 53,451 | | | $ | 43,667 | | | $ | 61,355 | | | $ | 140,640 | |
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| Earnings (loss) per share - basic: | | | | | | | | | | | | | | | | | | | | | |
| Continuing operations, as adjusted | $ | 0.42 | | | $ | (0.12) | | | $ | 0.02 | | | $ | (0.03) | | | $ | 0.05 | | | $ | (0.07) | | | $ | (0.05) | | | $ | 0.15 | | | $ | 0.12 | | | $ | 0.17 | | | $ | 0.40 | |
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| Earnings (loss) per share - diluted: | | | | | | | | | | | | | | | | | | | | | |
| Continuing operations, as adjusted | $ | 0.42 | | | $ | (0.12) | | | $ | 0.02 | | | $ | (0.03) | | | $ | 0.05 | | | $ | (0.07) | | | $ | (0.05) | | | $ | 0.15 | | | $ | 0.12 | | | $ | 0.17 | | | $ | 0.40 | |
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| Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | |
| Basic | 349,970 | | | 350,435 | | | 350,501 | | | 350,667 | | | 350,765 | | | 350,592 | | | 351,576 | | | 351,990 | | | 352,107 | | | 352,881 | | | 352,139 | |
| Diluted | 350,606 | | | 350,435 | | | 350,631 | | | 350,667 | | | 351,566 | | | 350,592 | | | 351,576 | | | 352,665 | | | 354,839 | | | 356,851 | | | 354,184 | |
TABLE 2-A - Continuing Operations, Reconciliation of Non-GAAP Measures
HANESBRANDS INC.
Reconciliation of Select GAAP Measures to Non-GAAP Measures
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands, except per share data)
(Unaudited)
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The following tables present a reconciliation of the results of continuing operations as reported under GAAP to the results of continuing operations as adjusted for full year 2022 and by quarter for 2023 and 2024. The results of continuing operations exclude the results of the global Champion business, U.S.-based outlet store business and the Champion Japan business, which have been reclassified to discontinued operations for all periods presented. The Company has chosen to present the following non-GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating continuing operations absent the effect of restructuring and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.
Restructuring and other action-related charges in 2022, 2023 and 2024 include the following: |
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| Supply chain restructuring and consolidation | In 2024, represents charges as a result of the sale of the global Champion business, which was completed in the fourth quarter of 2024 on September 30, 2024, and the completed exit of the U.S.-based outlet store business in July 2024 related to significant restructuring and consolidation efforts within the Company’s supply chain network, both manufacturing and distribution, to align the Company’s network to its continuing operations to drive stronger operating performance and margin expansion. In 2023 and 2022, represents charges related to supply chain segmentation to restructure and position the Company’s distribution and manufacturing network to align with its demand trends, simplify operations and improve efficiencies. |
| Corporate asset impairment charges | Primarily represents charges related to a contract terminated in the second quarter of 2024 and impairment of the Company’s headquarters location that was classified as held for sale in the second quarter of 2024. |
| Headcount actions and related severance | Represents charges related to operating model initiatives primarily headcount actions and related severance charges and adjustments related to restructuring activities. |
| Professional services | Represents professional fees, primarily including consulting and advisory services, related to restructuring activities. |
| Technology | Represents technology charges related to the implementation of the Company’s technology modernization initiative which includes a global enterprise resource planning platform. |
| Gain/loss on sale of business and classification of assets held for sale | Represents the gain/loss associated with the sale of the Company’s U.S. Sheer Hosiery business and adjustments to the related valuation allowance prior to the sale on September 29, 2023, primarily from the changes in carrying value due to changes in working capital. |
| Loss on extinguishment of debt | Represents charges for the write-off of unamortized debt issuance costs related to the requirement to pay down a portion of the Company’s outstanding term debt under the Senior Secured Credit Facility with the net proceeds from the sale of the global Champion business in the fourth quarter of 2024 and charges related to the redemption of the Company’s 4.625% Senior Notes and 3.5% Senior Notes in the first quarter of 2023. |
| Gain on final settlement of cross currency swap contracts | Primarily represents the remaining gain related to cross-currency swap contracts previously designated as cash flow hedges in accumulated other comprehensive loss which was released into earnings as the Company unwound the cross-currency swap contracts in connection with the redemption of the 3.5% Senior Notes at the time of settlement in the first quarter of 2023. |
| Discrete tax benefit | In 2023, represents an adjustment to non-cash reserves established at December 31, 2022 related to deferred taxes established for Swiss statutory impairments, which are not indicative of the Company’s core business operations. In 2022, represents non-cash reserves established relating to deferred taxes. |
| Tax effect on actions | Represents the applicable effective tax rate on the restructuring and other action-related charges based on the jurisdiction of where the charges were incurred. |
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| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Gross profit, as reported under GAAP | $ | 1,347,035 | | | $ | 268,384 | | | $ | 347,008 | | | $ | 334,905 | | | $ | 341,593 | | | $ | 1,291,890 | | | $ | 297,433 | | | $ | 298,343 | | | $ | 373,477 | | | $ | 390,271 | | | $ | 1,359,524 | |
| As a % of net sales | 34.9 | % | | 31.6 | % | | 34.2 | % | | 36.1 | % | | 40.2 | % | | 35.5 | % | | 39.9 | % | | 30.6 | % | | 41.5 | % | | 43.9 | % | | 38.8 | % |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | 14,345 | | | 1,516 | | | 236 | | | 660 | | | (1,284) | | | 1,128 | | | 167 | | | 78,226 | | | 1,117 | | | 1,238 | | | 80,748 | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 10,395 | | | — | | | — | | | 10,395 | |
| Headcount actions and related severance | (712) | | | — | | | — | | | 869 | | | 156 | | | 1,025 | | | 36 | | | — | | | — | | | — | | | 36 | |
| Other | 12 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Gross profit, as adjusted | $ | 1,360,680 | | | $ | 269,900 | | | $ | 347,244 | | | $ | 336,434 | | | $ | 340,465 | | | $ | 1,294,043 | | | $ | 297,636 | | | $ | 386,964 | | | $ | 374,594 | | | $ | 391,509 | | | $ | 1,450,703 | |
| As a % of net sales | 35.2 | % | | 31.8 | % | | 34.3 | % | | 36.3 | % | | 40.0 | % | | 35.6 | % | | 40.0 | % | | 39.7 | % | | 41.6 | % | | 44.1 | % | | 41.4 | % |
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| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Selling, general and administrative expenses, as reported under GAAP | $ | 1,079,664 | | | $ | 243,848 | | | $ | 277,220 | | | $ | 257,390 | | | $ | 247,154 | | | $ | 1,025,612 | | | $ | 262,019 | | | $ | 361,546 | | | $ | 279,440 | | | $ | 270,571 | | | $ | 1,173,576 | |
| As a % of net sales | 28.0 | % | | 28.7 | % | | 27.4 | % | | 27.8 | % | | 29.1 | % | | 28.2 | % | | 35.2 | % | | 37.1 | % | | 31.0 | % | | 30.5 | % | | 33.5 | % |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | — | | | — | | | — | | | — | | | — | | | — | | | (1,940) | | | (78,581) | | | (9,593) | | | (667) | | | (90,781) | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (9,712) | | | — | | | — | | | (9,712) | |
| Headcount actions and related severance | (7,687) | | | 871 | | | (2,760) | | | (1,662) | | | (573) | | | (4,124) | | | (12,151) | | | (6,911) | | | 1,245 | | | 860 | | | (16,957) | |
| Professional services | (23,994) | | | (40) | | | (3,608) | | | (165) | | | (6) | | | (3,819) | | | (490) | | | (3,544) | | | (7,843) | | | (4,611) | | | (16,488) | |
| Technology | (11,922) | | | (4,221) | | | (2,881) | | | (588) | | | (657) | | | (8,347) | | | (181) | | | (218) | | | (428) | | | (1,032) | | | (1,859) | |
| Gain (loss) on sale of business and classification of assets held for sale | 3,535 | | | 2,139 | | | (7,338) | | | 1,558 | | | — | | | (3,641) | | | — | | | — | | | — | | | — | | | — | |
| Other | (929) | | | (242) | | | 128 | | | (324) | | | (277) | | | (715) | | | (4) | | | (1,447) | | | (1,209) | | | 413 | | | (2,247) | |
| Selling, general and administrative expenses, as adjusted | $ | 1,038,667 | | | $ | 242,355 | | | $ | 260,761 | | | $ | 256,209 | | | $ | 245,641 | | | $ | 1,004,966 | | | $ | 247,253 | | | $ | 261,133 | | | $ | 261,612 | | | $ | 265,534 | | | $ | 1,035,532 | |
| As a % of net sales | 26.9 | % | | 28.5 | % | | 25.7 | % | | 27.7 | % | | 28.9 | % | | 27.6 | % | | 33.2 | % | | 26.8 | % | | 29.1 | % | | 29.9 | % | | 29.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Operating profit (loss), as reported under GAAP | $ | 267,371 | | | $ | 24,536 | | | $ | 69,788 | | | $ | 77,515 | | | $ | 94,439 | | | $ | 266,278 | | | $ | 35,414 | | | $ | (63,203) | | | $ | 94,037 | | | $ | 119,700 | | | $ | 185,948 | |
| As a % of net sales | 6.9 | % | | 2.9 | % | | 6.9 | % | | 8.4 | % | | 11.1 | % | | 7.3 | % | | 4.8 | % | | (6.5) | % | | 10.4 | % | | 13.5 | % | | 5.3 | % |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | 14,345 | | | 1,516 | | | 236 | | | 660 | | | (1,284) | | | 1,128 | | | 2,107 | | | 156,807 | | | 10,710 | | | 1,905 | | | 171,529 | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 20,107 | | | — | | | — | | | 20,107 | |
| Headcount actions and related severance | 6,975 | | | (871) | | | 2,760 | | | 2,531 | | | 729 | | | 5,149 | | | 12,187 | | | 6,911 | | | (1,245) | | | (860) | | | 16,993 | |
| Professional services | 23,994 | | | 40 | | | 3,608 | | | 165 | | | 6 | | | 3,819 | | | 490 | | | 3,544 | | | 7,843 | | | 4,611 | | | 16,488 | |
| Technology | 11,922 | | | 4,221 | | | 2,881 | | | 588 | | | 657 | | | 8,347 | | | 181 | | | 218 | | | 428 | | | 1,032 | | | 1,859 | |
| (Gain) loss on sale of business and classification of assets held for sale | (3,535) | | | (2,139) | | | 7,338 | | | (1,558) | | | — | | | 3,641 | | | — | | | — | | | — | | | — | | | — | |
| Other | 941 | | | 242 | | | (128) | | | 324 | | | 277 | | | 715 | | | 4 | | | 1,447 | | | 1,209 | | | (413) | | | 2,247 | |
| Operating profit, as adjusted | $ | 322,013 | | | $ | 27,545 | | | $ | 86,483 | | | $ | 80,225 | | | $ | 94,824 | | | $ | 289,077 | | | $ | 50,383 | | | $ | 125,831 | | | $ | 112,982 | | | $ | 125,975 | | | $ | 415,171 | |
| As a % of net sales | 8.3 | % | | 3.2 | % | | 8.5 | % | | 8.7 | % | | 11.2 | % | | 7.9 | % | | 6.8 | % | | 12.9 | % | | 12.5 | % | | 14.2 | % | | 11.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Interest expense, net and other expenses, as reported under GAAP | $ | 140,027 | | | $ | 59,918 | | | $ | 65,725 | | | $ | 65,525 | | | $ | 60,780 | | | $ | 251,948 | | | $ | 59,645 | | | $ | 60,895 | | | $ | 57,885 | | | $ | 64,917 | | | $ | 243,342 | |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Loss on extinguishment of debt | — | | | (8,466) | | | — | | | — | | | — | | | (8,466) | | | — | | | — | | | — | | | (9,412) | | | (9,412) | |
| Gain on final settlement of cross currency swaps | — | | | 1,370 | | | — | | | — | | | — | | | 1,370 | | | — | | | — | | | — | | | — | | | — | |
| Interest expense, net and other expenses, as adjusted | $ | 140,027 | | | $ | 52,822 | | | $ | 65,725 | | | $ | 65,525 | | | $ | 60,780 | | | $ | 244,852 | | | $ | 59,645 | | | $ | 60,895 | | | $ | 57,885 | | | $ | 55,505 | | | $ | 233,930 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Income (loss) from continuing operations before income taxes, as reported under GAAP | $ | 127,344 | | | $ | (35,382) | | | $ | 4,063 | | | $ | 11,990 | | | $ | 33,659 | | | $ | 14,330 | | | $ | (24,231) | | | $ | (124,098) | | | $ | 36,152 | | | $ | 54,783 | | | $ | (57,394) | |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | 14,345 | | | 1,516 | | | 236 | | | 660 | | | (1,284) | | | 1,128 | | | 2,107 | | | 156,807 | | | 10,710 | | | 1,905 | | | 171,529 | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 20,107 | | | — | | | — | | | 20,107 | |
| Headcount actions and related severance | 6,975 | | | (871) | | | 2,760 | | | 2,531 | | | 729 | | | 5,149 | | | 12,187 | | | 6,911 | | | (1,245) | | | (860) | | | 16,993 | |
| Professional services | 23,994 | | | 40 | | | 3,608 | | | 165 | | | 6 | | | 3,819 | | | 490 | | | 3,544 | | | 7,843 | | | 4,611 | | | 16,488 | |
| Technology | 11,922 | | | 4,221 | | | 2,881 | | | 588 | | | 657 | | | 8,347 | | | 181 | | | 218 | | | 428 | | | 1,032 | | | 1,859 | |
| (Gain) loss on sale of business and classification of assets held for sale | (3,535) | | | (2,139) | | | 7,338 | | | (1,558) | | | — | | | 3,641 | | | — | | | — | | | — | | | — | | | — | |
| Other | 941 | | | 242 | | | (128) | | | 324 | | | 277 | | | 715 | | | 4 | | | 1,447 | | | 1,209 | | | (413) | | | 2,247 | |
| Loss on extinguishment of debt | — | | | 8,466 | | | — | | | — | | | — | | | 8,466 | | | — | | | — | | | — | | | 9,412 | | | 9,412 | |
| Gain on final settlement of cross currency swaps | — | | | (1,370) | | | — | | | — | | | — | | | (1,370) | | | — | | | — | | | — | | | — | | | — | |
| Income (loss) from continuing operations before income taxes, as adjusted | $ | 181,986 | | | $ | (25,277) | | | $ | 20,758 | | | $ | 14,700 | | | $ | 34,044 | | | $ | 44,225 | | | $ | (9,262) | | | $ | 64,936 | | | $ | 55,097 | | | $ | 70,470 | | | $ | 181,241 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Income tax expense (benefit), as reported under GAAP | $ | 447,889 | | | $ | 16,180 | | | $ | 12,826 | | | $ | 21,280 | | | $ | (65,104) | | | $ | (14,818) | | | $ | 8,571 | | | $ | 11,485 | | | $ | 11,430 | | | $ | 9,115 | | | $ | 40,601 | |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Discrete tax (expense) benefit | (422,918) | | | — | | | — | | | 4,263 | | | 80,859 | | | 85,122 | | | — | | | — | | | — | | | — | | | — | |
| Tax effect on actions | 9,152 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total included in income tax (expense) benefit | (413,766) | | | — | | | — | | | 4,263 | | | 80,859 | | | 85,122 | | | — | | | — | | | — | | | — | | | — | |
| Income tax expense, as adjusted | $ | 34,123 | | | $ | 16,180 | | | $ | 12,826 | | | $ | 25,543 | | | $ | 15,755 | | | $ | 70,304 | | | $ | 8,571 | | | $ | 11,485 | | | $ | 11,430 | | | $ | 9,115 | | | $ | 40,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Income (loss) from continuing operations, as reported under GAAP | $ | (320,545) | | | $ | (51,562) | | | $ | (8,763) | | | $ | (9,290) | | | $ | 98,763 | | | $ | 29,148 | | | $ | (32,802) | | | $ | (135,583) | | | $ | 24,722 | | | $ | 45,668 | | | $ | (97,995) | |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | 14,345 | | | 1,516 | | | 236 | | | 660 | | | (1,284) | | | 1,128 | | | 2,107 | | | 156,807 | | | 10,710 | | | 1,905 | | | 171,529 | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 20,107 | | | — | | | — | | | 20,107 | |
| Headcount actions and related severance | 6,975 | | | (871) | | | 2,760 | | | 2,531 | | | 729 | | | 5,149 | | | 12,187 | | | 6,911 | | | (1,245) | | | (860) | | | 16,993 | |
| Professional services | 23,994 | | | 40 | | | 3,608 | | | 165 | | | 6 | | | 3,819 | | | 490 | | | 3,544 | | | 7,843 | | | 4,611 | | | 16,488 | |
| Technology | 11,922 | | | 4,221 | | | 2,881 | | | 588 | | | 657 | | | 8,347 | | | 181 | | | 218 | | | 428 | | | 1,032 | | | 1,859 | |
| (Gain) loss on sale of business and classification of assets held for sale | (3,535) | | | (2,139) | | | 7,338 | | | (1,558) | | | — | | | 3,641 | | | — | | | — | | | — | | | — | | | — | |
| Other | 941 | | | 242 | | | (128) | | | 324 | | | 277 | | | 715 | | | 4 | | | 1,447 | | | 1,209 | | | (413) | | | 2,247 | |
| Loss on extinguishment of debt | — | | | 8,466 | | | — | | | — | | | — | | | 8,466 | | | — | | | — | | | — | | | 9,412 | | | 9,412 | |
| Gain on final settlement of cross currency swaps | — | | | (1,370) | | | — | | | — | | | — | | | (1,370) | | | — | | | — | | | — | | | — | | | — | |
| Discrete tax expense (benefit) | 422,918 | | | — | | | — | | | (4,263) | | | (80,859) | | | (85,122) | | | — | | | — | | | — | | | — | | | — | |
| Tax effect on actions | (9,152) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Income (loss) from continuing operations, as adjusted | $ | 147,863 | | | $ | (41,457) | | | $ | 7,932 | | | $ | (10,843) | | | $ | 18,289 | | | $ | (26,079) | | | $ | (17,833) | | | $ | 53,451 | | | $ | 43,667 | | | $ | 61,355 | | | $ | 140,640 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended1 | | Quarters Ended1 | | Year Ended1 | | Quarters Ended1 | | Year Ended1 |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Diluted earnings (loss) per share from continuing operations, as reported under GAAP | $ | (0.92) | | | $ | (0.15) | | | $ | (0.03) | | | $ | (0.03) | | | $ | 0.28 | | | $ | 0.08 | | | $ | (0.09) | | | $ | (0.39) | | | $ | 0.07 | | | $ | 0.13 | | | $ | (0.28) | |
| Restructuring and other action-related charges: | | | | | | | | | | | | | | | | | | | | | |
| Supply chain restructuring and consolidation | 0.04 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.01 | | | 0.44 | | | 0.03 | | | 0.01 | | | 0.48 | |
| Corporate asset impairment charges | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.06 | | | — | | | — | | | 0.06 | |
| Headcount actions and related severance | 0.02 | | | 0.00 | | | 0.01 | | | 0.01 | | | 0.00 | | | 0.01 | | | 0.03 | | | 0.02 | | | 0.00 | | | 0.00 | | | 0.05 | |
| Professional services | 0.07 | | | 0.00 | | | 0.01 | | | 0.00 | | | 0.00 | | | 0.01 | | | 0.00 | | | 0.01 | | | 0.02 | | | 0.01 | | | 0.05 | |
| Technology | 0.03 | | | 0.01 | | | 0.01 | | | 0.00 | | | 0.00 | | | 0.02 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.01 | |
| (Gain) loss on sale of business and classification of assets held for sale | (0.01) | | | (0.01) | | | 0.02 | | | 0.00 | | | — | | | 0.01 | | | — | | | — | | | — | | | — | | | — | |
| Other | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.01 | |
| Loss on extinguishment of debt | — | | | 0.02 | | | — | | | — | | | — | | | 0.02 | | | — | | | — | | | — | | | 0.03 | | | 0.03 | |
| Gain on final settlement of cross currency swaps | — | | | 0.00 | | | — | | | — | | | — | | | 0.00 | | | — | | | — | | | — | | | — | | | — | |
| Discrete tax benefit | 1.21 | | | — | | | — | | | (0.01) | | | (0.23) | | | (0.24) | | | — | | | — | | | — | | | — | | | — | |
| Tax effect on actions | (0.03) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Diluted earnings (loss) per share from continuing operations, as adjusted | $ | 0.42 | | | $ | (0.12) | | | $ | 0.02 | | | $ | (0.03) | | | $ | 0.05 | | | $ | (0.07) | | | $ | (0.05) | | | $ | 0.15 | | | $ | 0.12 | | | $ | 0.17 | | | $ | 0.40 | |
| | | | | |
| 1 | Amounts may not be additive due to rounding. |
TABLE 2-B - Discontinued Operations, Reconciliation of Select Non-GAAP Measures
HANESBRANDS INC.
Reconciliation of Select GAAP Measures to Non-GAAP Measures
Discontinued Operations
(in thousands, except per share data)
(Unaudited)
The key components from discontinued operations related to the Global Champion business, the U.S.-Based Outlet Store Business, and the Champion Japan business, are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended |
| | Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 |
| Net sales | $ | 2,370,841 | | | $ | 540,096 | | | $ | 425,804 | | | $ | 584,693 | | | $ | 446,544 | | | $ | 1,997,137 | | | $ | 411,526 | | | $ | 380,000 | | | $ | 480,272 | | | $ | 132,479 | | | $ | 1,404,277 | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating profit (loss), as reported under GAAP | $ | 252,174 | | | $ | 32,783 | | | $ | (384) | | | $ | (11,553) | | | $ | 1,658 | | | $ | 22,504 | | | $ | 16,692 | | | $ | (145,261) | | | $ | 29,250 | | | $ | (67,313) | | | $ | (166,632) | |
| Restructuring and other action-related charges | 5,216 | | | 3,112 | | | 1,366 | | | 74,361 | | | 14,266 | | | 93,105 | | | 16,752 | | | 152,426 | | | 28,210 | | | 54,367 | | | 251,755 | |
| Operating profit (loss), as adjusted | $ | 257,390 | | | $ | 35,895 | | | $ | 982 | | | $ | 62,808 | | | $ | 15,924 | | | $ | 115,609 | | | $ | 33,444 | | | $ | 7,165 | | | $ | 57,460 | | | $ | (12,946) | | | $ | 85,123 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations, net of tax, as reported under GAAP | $ | 189,376 | | | $ | 17,158 | | | $ | (13,701) | | | $ | (29,509) | | | $ | (20,822) | | | $ | (46,874) | | | $ | (6,320) | | | $ | (162,797) | | | $ | 5,229 | | | $ | (58,548) | | | $ | (222,436) | |
| Restructuring and other action-related charges | 5,216 | | | 3,112 | | | 1,366 | | | 74,361 | | | 14,266 | | | 93,105 | | | 16,752 | | | 152,426 | | | 28,210 | | | 54,367 | | | 251,755 | |
| Tax effect on actions | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,267) | | | 2,267 | | | — | |
| Income (loss) from discontinued operations, net of tax, as adjusted | $ | 194,592 | | | $ | 20,270 | | | $ | (12,335) | | | $ | 44,852 | | | $ | (6,556) | | | $ | 46,231 | | | $ | 10,432 | | | $ | (10,371) | | | $ | 31,172 | | | $ | (1,914) | | | $ | 29,319 | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share from discontinued operations, as reported under GAAP1 | $ | 0.54 | | | $ | 0.05 | | | $ | (0.04) | | | $ | (0.08) | | | $ | (0.06) | | | $ | (0.13) | | | $ | (0.02) | | | $ | (0.46) | | | $ | 0.01 | | | $ | (0.17) | | | $ | (0.63) | |
Restructuring and other action-related charges1 | 0.01 | | | 0.01 | | | $ | 0.00 | | | 0.21 | | | 0.04 | | | 0.27 | | | 0.05 | | | 0.43 | | | 0.07 | | | 0.16 | | | 0.71 | |
Diluted earnings (loss) per share from discontinued operations, as adjusted1 | $ | 0.56 | | | $ | 0.06 | | | $ | (0.04) | | | $ | 0.13 | | | $ | (0.02) | | | $ | 0.13 | | | $ | 0.03 | | | $ | (0.03) | | | $ | 0.09 | | | $ | (0.01) | | | $ | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | |
| Basic | 349,970 | | | 350,435 | | | 350,501 | | | 350,667 | | | 350,765 | | | 350,592 | | | 351,576 | | | 351,990 | | | 352,107 | | | 352,881 | | | 352,139 | |
| Diluted | 350,606 | | | 350,827 | | | 350,501 | | | 351,204 | | | 350,765 | | | 351,057 | | | 352,381 | | | 351,990 | | | 354,839 | | | 352,881 | | | 354,184 | |
1 Amounts may not be additive due to rounding.
TABLE 3 - Continuing Operations, Segments
HANESBRANDS INC.
Supplemental Financial Information By Business Segment
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended | | Quarters Ended | | Year Ended | | Quarters Ended | | Year Ended | | | | | | |
| Dec. 31,
2022 | | Apr. 1,
2023 | | Jul. 1,
2023 | | Sep. 30,
2023 | | Dec. 30,
2023 | | Dec. 30,
2023 | | Mar. 30,
2024 | | Jun. 29,
2024 | | Sep. 28,
2024 | | Dec. 28,
2024 | | Dec. 28,
2024 | | | | | | |
| Segment net sales: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. | $ | 2,692,175 | | | $ | 599,884 | | | $ | 751,049 | | | $ | 684,990 | | | $ | 600,733 | | | $ | 2,636,656 | | | $ | 543,891 | | | $ | 740,154 | | | $ | 678,345 | | | $ | 618,747 | | | $ | 2,581,137 | | | | | | | |
| International | 1,010,541 | | | 221,623 | | | 242,578 | | | 221,103 | | | 247,763 | | | 933,067 | | | 200,011 | | | 233,073 | | | 222,410 | | | 252,939 | | | 908,433 | | | | | | | |
| Total segment net sales | 3,702,716 | | | 821,507 | | | 993,627 | | | 906,093 | | | 848,496 | | | 3,569,723 | | | 743,902 | | | 973,227 | | | 900,755 | | | 871,686 | | | 3,489,570 | | | | | | | |
| Other net sales | 160,093 | | | 27,807 | | | 19,549 | | | 20,520 | | | 1,787 | | | 69,663 | | | 773 | | | 700 | | | (388) | | | 16,783 | | | 17,868 | | | | | | | |
| Total net sales | $ | 3,862,809 | | | $ | 849,314 | | | $ | 1,013,176 | | | $ | 926,613 | | | $ | 850,283 | | | $ | 3,639,386 | | | $ | 744,675 | | | $ | 973,927 | | | $ | 900,367 | | | $ | 888,469 | | | $ | 3,507,438 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment operating profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. | $ | 402,697 | | | $ | 66,607 | | | $ | 125,154 | | | $ | 105,579 | | | $ | 106,933 | | | $ | 404,273 | | | $ | 98,263 | | | $ | 158,214 | | | $ | 149,637 | | | $ | 142,738 | | | $ | 548,852 | | | | | | | |
| International | 144,373 | | | 21,533 | | | 21,551 | | | 21,050 | | | 44,699 | | | 108,833 | | | 16,801 | | | 30,237 | | | 27,704 | | | 31,764 | | | 106,506 | | | | | | | |
| Total segment operating profit | 547,070 | | | 88,140 | | | 146,705 | | | 126,629 | | | 151,632 | | | 513,106 | | | 115,064 | | | 188,451 | | | 177,341 | | | 174,502 | | | 655,358 | | | | | | | |
| Other profit (loss) | 21,774 | | | 1,509 | | | (1,721) | | | 342 | | | (1,319) | | | (1,189) | | | 681 | | | (130) | | | (1,989) | | | 3,988 | | | 2,550 | | | | | | | |
| General corporate expenses | (228,782) | | | (58,061) | | | (53,262) | | | (41,915) | | | (50,781) | | | (204,019) | | | (60,692) | | | (58,212) | | | (58,449) | | | (48,642) | | | (225,995) | | | | | | | |
| Amortization of intangibles | (18,049) | | | (4,043) | | | (5,239) | | | (4,831) | | | (4,708) | | | (18,821) | | | (4,670) | | | (4,278) | | | (3,921) | | | (3,873) | | | (16,742) | | | | | | | |
| Total operating profit before restructuring and other action-related charges | 322,013 | | | 27,545 | | | 86,483 | | | 80,225 | | | 94,824 | | | 289,077 | | | 50,383 | | | 125,831 | | | 112,982 | | | 125,975 | | | 415,171 | | | | | | | |
| Restructuring and other action-related charges | (54,642) | | | (3,009) | | | (16,695) | | | (2,710) | | | (385) | | | (22,799) | | | (14,969) | | | (189,034) | | | (18,945) | | | (6,275) | | | (229,223) | | | | | | | |
| Total operating profit (loss) | $ | 267,371 | | | $ | 24,536 | | | $ | 69,788 | | | $ | 77,515 | | | $ | 94,439 | | | $ | 266,278 | | | $ | 35,414 | | | $ | (63,203) | | | $ | 94,037 | | | $ | 119,700 | | | $ | 185,948 | | | | | | | |
TABLE 4-A - Continuing Operations, Constant Currency
HANESBRANDS INC.
Impact of Foreign Currency
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands, except per share data)
(Unaudited)
| | |
| The following table presents a reconciliation of reported results from continuing operations on a constant currency basis for the quarters ended March 30, 2024, June 29, 2024, September 28, 2024 and comparisons to prior years: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended March 30, 2024 | | | | | | |
| As Reported | | Impact from Foreign Currency1 | | Constant Currency | | Quarter Ended April 1, 2023 | | % Change,
As Reported | | % Change,
Constant Currency |
| As reported under GAAP: | | | | | | | | | | | |
| Net sales | $ | 744,675 | | | $ | (11,369) | | | $ | 756,044 | | | $ | 849,314 | | | (12.3) | % | | (11.0) | % |
| Gross profit | 297,433 | | | (7,710) | | | 305,143 | | | 268,384 | | | 10.8 | | | 13.7 | |
| Operating profit | 35,414 | | | (2,862) | | | 38,276 | | | 24,536 | | | 44.3 | | | 56.0 | |
Diluted loss per share from continuing operations3 | $ | (0.09) | | | $ | (0.09) | | | $ | (0.01) | | | $ | (0.15) | | | (40.0) | % | | (93.3) | % |
| | | | | | | | | | | |
As adjusted:2 | | | | | | | | | | | |
| Net sales | $ | 744,675 | | | $ | (11,369) | | | $ | 756,044 | | | $ | 849,314 | | | (12.3) | % | | (11.0) | % |
| Gross profit | 297,636 | | | (7,710) | | | 305,346 | | | 269,900 | | | 10.3 | | | 13.1 | |
| Operating profit | 50,383 | | | (2,862) | | | 53,245 | | | 27,545 | | | 82.9 | | | 93.3 | |
Diluted loss per share from continuing operations3 | $ | (0.05) | | | $ | (0.04) | | | $ | (0.01) | | | $ | (0.12) | | | (58.3) | % | | (91.7) | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 29, 2024 | | | | | | |
| As Reported | | Impact from Foreign Currency1 | | Constant Currency | | Quarter Ended July 1, 2023 | | % Change,
As Reported | | % Change,
Constant Currency |
| As reported under GAAP: | | | | | | | | | | | |
| Net sales | $ | 973,927 | | | $ | (12,270) | | | $ | 986,197 | | | $ | 1,013,176 | | | (3.9) | % | | (2.7) | % |
| Gross profit | 298,343 | | | (7,771) | | | 306,114 | | | 347,008 | | | (14.0) | | | (11.8) | |
| Operating profit | (63,203) | | | (3,451) | | | (59,752) | | | 69,788 | | | (190.6) | | | (185.6) | |
Diluted loss per share from continuing operations3 | $ | (0.39) | | | $ | (0.38) | | | $ | (0.01) | | | $ | (0.03) | | | 1,200.0 | % | | (66.7) | % |
| | | | | | | | | | | |
As adjusted:2 | | | | | | | | | | | |
| Net sales | $ | 973,927 | | | $ | (12,270) | | | $ | 986,197 | | | $ | 1,013,176 | | | (3.9) | % | | (2.7) | % |
| Gross profit | 386,964 | | | (7,771) | | | 394,735 | | | 347,244 | | | 11.4 | | | 13.7 | |
| Operating profit | 125,831 | | | (3,451) | | | 129,282 | | | 86,483 | | | 45.5 | | | 49.5 | |
Diluted earnings (loss) per share from continuing operations3 | $ | 0.15 | | | $ | 0.16 | | | $ | (0.01) | | | $ | 0.02 | | | 650.0 | % | | (150.0) | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended September 28, 2024 | | | | | | |
| As Reported | | Impact from Foreign Currency1 | | Constant Currency | | Quarter Ended September 30, 2023 | | % Change,
As Reported | | % Change,
Constant Currency |
| As reported under GAAP: | | | | | | | | | | | |
| Net sales | $ | 900,367 | | | $ | (6,652) | | | $ | 907,019 | | | $ | 926,613 | | | (2.8) | % | | (2.1) | % |
| Gross profit | 373,477 | | | (1,299) | | | 374,776 | | | 334,905 | | | 11.5 | | | 11.9 | |
| Operating profit | 94,037 | | | (206) | | | 94,243 | | | 77,515 | | | 21.3 | | | 21.6 | |
Diluted earnings (loss) per share from continuing operations3 | $ | 0.07 | | | $ | 0.07 | | | $ | 0.00 | | | $ | (0.03) | | | (333.3) | % | | (100.0) | % |
| | | | | | | | | | | |
As adjusted:2 | | | | | | | | | | | |
| Net sales | $ | 900,367 | | | $ | (6,652) | | | $ | 907,019 | | | $ | 926,613 | | | (2.8) | % | | (2.1) | % |
| Gross profit | 374,594 | | | (1,299) | | | 375,893 | | | 336,434 | | | 11.3 | | | 11.7 | |
| Operating profit | 112,982 | | | (206) | | | 113,188 | | | 80,225 | | | 40.8 | | | 41.1 | |
Diluted earnings (loss) per share from continuing operations3 | $ | 0.12 | | | $ | 0.12 | | | $ | 0.00 | | | $ | (0.03) | | | (500.0) | % | | (100.0) | % |
| | | | | |
| 1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
|
| 2 | Results reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 2-A. |
| 3 | Amounts may not be additive due to rounding. |
TABLE 4-B - Continuing Operations, Organic Constant Currency
HANESBRANDS INC.
Organic Constant Currency
Revised to Present the Champion Japan Business as Discontinued Operations along with the Global Champion and U.S.-Based Outlet Store Businesses
(in thousands, except per share data)
(Unaudited)
| | |
| The following tables present a reconciliation of reported results from continuing operations on an organic constant currency basis for the quarters ended March 30, 2024, June 29, 2024, September 28, 2024 and comparisons to prior years: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended March 30, 2024 | | Quarter Ended April 1, 2023 | | | | |
| As Reported | | Impact from Foreign Currency1 | | Less Other Sales2 | | Organic Constant Currency | | As Reported | | Less Other Sales2 | | Organic | | % Change,
As Reported | | % Change,
Organic Constant Currency |
| Net sales | $ | 744,675 | | | $ | (11,369) | | | $ | 773 | | | $ | 755,271 | | | $ | 849,314 | | | $ | 27,807 | | | $ | 821,507 | | | (12.3) | % | | (8.1) | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 29, 2024 | | Quarter Ended July 1, 2023 | | | | |
| As Reported | | Impact from Foreign Currency1 | | Less Other Sales2 | | Organic Constant Currency | | As Reported | | Less Other Sales2 | | Organic | | % Change,
As Reported | | % Change,
Organic Constant Currency |
| Net sales | $ | 973,927 | | | $ | (12,270) | | | $ | 700 | | | $ | 985,497 | | | $ | 1,013,176 | | | $ | 19,549 | | | $ | 993,627 | | | (3.9) | % | | (0.8) | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended September 28, 2024 | | Quarter Ended September 30, 2023 | | | | |
| As Reported | | Impact from Foreign Currency1 | | Less Other Sales2 | | Organic Constant Currency | | As Reported | | Less Other Sales2 | | Organic | | % Change,
As Reported | | % Change,
Organic Constant Currency |
| Net sales | $ | 900,367 | | | $ | (6,652) | | | $ | (388) | | | $ | 907,407 | | | $ | 926,613 | | | $ | 20,520 | | | $ | 906,093 | | | (2.8) | % | | 0.1 | % |
| | | | | |
| 1 | Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results. |
| 2 | Other sales consist of the Company’s U.S. Sheer Hosiery business (prior to the September 29, 2023 sale) as well as certain sales from the Company’s supply chain and short term support/transition services agreements for disposed businesses. |
