HBI - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Hanesbrands Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will be given at that time.

As a reminder, this conference is being recorded. I would now like the hand the floor over to T.C. Officer. Relations Investor Chief Robillard, Please go sir. ahead,

T.C. Robillard

Good Conference Call everyone, and welcome Investor Quarterly Hanesbrands the and to day, Webcast.

our third Investors Hopefully We replay and are to today. on be the The update can to review of provide of Section pleased to we in hanes.com updated found be this our here the news news website. progress call issued a release, has a had everyone today of release an quarter the chance XXXX. earlier after document FAQ

On associated The to make risks These risks be our and certain in and the differ materially. on forward-looking statements our prepared remarks beliefs today, we the on results SEC to call may These and based either uncertainties or question-and-answer are or detailed with subject in found may in undertake speak are revise filings statements our that news expectations the may operations Unless current as are in results, various and continuing actual session. cause well references our otherwise releases. the noted, to all our only forward-looking exclude and charges not company they acquisition any consolidated as guidance, at today's XXXX time website are does as financial our and which represent made. or update statements, expenses. as to integration-related to well which

found Additional information, be Release. measures today's in including can a reconciliation GAAP Press of these performance and other to non-GAAP

Officer; our and Speaking on Moss, Executive the call Rick Chief Gerald today Chief our Financial are retiring Evans, Officer.

it call brief will Rick to are our some Gerald. I remarks, now Financial you recently as know, not provide to also Chief will then questions. turn by we your as who and Gerald joined speaking joined the open and While today, over Barry up we Hytinen, Officer. Hanesbrands will

Gerald W. Evans Jr.

operations earnings Thank you, from solid with and of our revenue a guidance delivered quarter share cash and third flow $XXX last T.C. year. year-to-date million in with right per line ahead performance Hanesbrands

end amount a result expected, was little we a organic generated on flow. our than cash guidance, to that came quarter returned significant the delivered of differently we While we the we together and growth

model long-term business with shareholder it as diversified the market. multiple growth even and delivering the Our increasingly paths challenges U.S. has for of become returns, offers

the saw is diversified our three working to key First, continue fact, demonstrate flow. points amounts generate of in we quarter we that In model cash greater

the our We Project improving working are from Booster expenses recognizing ramping schedule. are synergies on integration declining, acquisitions, capital are and we is associated

of billion goal this XXXX. the flow deliver All our run us the $X cash at for gives midpoint of as to guidance a rate we ability our on and in of confidence exit our least year

Second, we scale believe have we have market. point the specifically challenges approached more Champion international, online, than sufficient our in our U.S. growth strategies, where to offset and an in the inflection business retail key reached

in as sales sales quarter, in Champion all all in half. Online currency. at Innerwear we sales As both was and reported rate the saw the constant channels quarter, organic an first rate a from Latin the the high single-digit product expected, in all increased America. we solid Australia growth which delivered XX% Global growth growth high regions, delivered categories. acceleration And increased and across XX% we in and in with in

believe the over revenue are countries, more geographically sales benefits. model helping contributions our well these drive long-term works The that The how acquisitions our is as organic acquisitions of being understood. our growth, is delivering are is of diversified global But our is Moreover, acquisitions demonstrating acquisitions of are are are a XX% we different chain our by both increasingly U.S., leverage past category third point base, many incremental our global outside from these synergy allowing I product overlooked multiyear concept supply our company. to and With fast-growing than us truly diversifying our across businesses. of XX operations. what

So category. product minute me a our let global discuss by to performance business take

bra than roughly quarter, similar the year trends while over increased between as sales, roughly product our driven sales International in Australia, both Argentina. POS in global last saw Nonetheless, expected traffic global the continued weaker U.S. Innerwear Mexico, overall declines improving offset stronger Champion by sales at than solid season. partially points. of quarter, and basics the X% represents accounts poor double-digit in within in XX% were as Apparel certain based XX during of as challenging the our Activewear, business key in in and Europe category we environment. well weakness the held broad basis in trends which Regionally at spite Brazil trends sales was we Activewear and growth This expected, by categories. saw For Innerwear the sales back-to-school declined in share and in resulted Innerwear growth Asia, retail market and

quarter. we than offset earlier, mentioned large return businesses to us and are encouraged Touching Champion sales the acquisition additional in to we of by enough and channels more growth distribution. of I to our growth mid-October. challenges As these with Apparel the in Activewear growth online, and supports now acquisitions, are providing organic This purchase brand briefly strategy that us on announced allowed Alternative another our international distinctive

XX%. deliver $XXX believe an and several from to Project to savings of deliver remaining of cash approximately growth of We well-positioned returns and roughly over are expect million IRR profit this next we million these and cost the net unlevered years. the least flow extremely deal Add after-tax $XX Booster, synergies acquisition to at we

all and investments summary, intended our efforts in of past are years the over several results. their So delivering

cash Booster to ramping. this positions all organic in believe of we revenue, our We is us growth building flow continued XXXX and for is beyond. diversified Project and have returning our growth, We are

joined best call And as over his the over here. and the him our ago to like very over, turn needs past he weeks transition and us you I'd brings the thank to excited his CFO. CEO. that, We I year welcome Rick I'd I organization turn the Rick. well-deserved partnership over the in a contributions of I'll also With XX all the particular, who, are Barry retirement. that Before skill-sets and of support like for to his is we experience Barry years. two in to past Hytinen wish call as breadth this to of as know, match Hanesbrands, guidance,

Richard D. Moss

different past to and Gerald. a the unmatched I've through Project XX from market environments. allocation the in over had Thanks, strategy strategies have for shareholders at hand of These brands to Innovate-to-Elevate decade our strategies organization thoroughly enjoyed our have an world capital I'm acquisition a returns Booster. time class driven It with past and honored successful significant a truly our over to years is my end Hanesbrands. great culture. variety

current billion our expand be More Booster confident an coming our deliver XXXX. Hanesbrands our on remaining such more diversified revenue in from outside XX% from challenges U.S., revenue and as and of base our run to retail of they've decade, and further and diversification we're importantly, XX% XX% $X flow flow to to sales investing growth as our we cash in remade and online the products for the nearly We're synergies, profit sales areas own irrespective market. our U.S. our over annual with which has a exit rate of of of Activewear Project savings, with cash goal the operations. the sales acquisition our in roughly coming next visible resulted ability much drivers, and of margins successful our in now Combine of

organic in Now over contributions. than million more let growth last year, driven our performance X% the quarter. during by speak and business $XX acquisition the me to roughly Sales increased base from

improved margin margins due chain. margin business, mix to primarily as last of points within was declined of international temporarily year, of rate tax to profit as of in over share gross expansion last the we recognize driven was by XX% U.S. prior basis a points XX quarter year have and margins XX evident basis impact quarter. jurisdictions $X.XX efficiency a Operating discrete $X.XX our higher the the higher year from to share and acquisitions. strong, And our the XX.X%, all expected, this in adjustments be As at in earthquake range prior hurricanes items third synergies earnings drag our are our to our lower increasing tax international in gains of versus and margins to in remain and lower supply The sales. in By of X% Recall, a year-over-year normal full from of yet segment per was midpoint tax related included per result guidance the the returns. of Mexico. expected

and trends growth of Back-to-school declines domestic in sales offset Activewear last expected weaker experienced softer market progress we XX% across And within by a we more segment these disappointed broadly apparent result than from was in in as trends that Looking channels weak expected, brick not certainly expecting within overall of retail quarter our Innerwear was at driven as online the traffic Gerald market as did were continued mortar. were apparel year sales We highlighted, pressure sales declined U.S. our as and Innerwear and segments, this results. the were category. Innerwear the than over by than pressures.

growth cash strength quarter, Latin by expected points by growth last delivered to respect XX% stronger Booster segment, share and double year key while and increased Innerwear our all $XXX were growth up both last directed segment, XXX also flow pace International Switching able driven operating In Booster the the channels UK. positive Europe, goods, growth driven However, our Brazil. X% POS sheet to channels. Hanes basis have margin sales trends in highlights, in to sales online XX and increased driven Argentina retail built over Japan last wholesale also channels, our the digits. our operating business and the improved XX year-to-date well at over as and Champion increased the capital. than GTM Germany mix than certain in net declining channels. operating double-digit store sales basis balance declined Korea. we brand year addition Mexico, department strong Innerwear Champion QX, while constant acquisition year Bra due margin slightly the Sales double-digit as expanded Hanes by over Within driven flow Champion operations sales increased offset to our currency, across Australasia synergies. strong mid-tier and trends in X% savings. Europe last wholesale by in growth hold roughly sales year constant and saw year due XX% in points points cash with DIM currency sales within much basis of sales Gerald million. in both All inventory of of increased Asia in a were in relaunch over Segment XX% that highlighted, in constant were margin basics over than Innerwear's to Sales cash Champion and increased to as we last Maidenform in over across With sales by respect faster POS improvements and America, in increased in more in over roughly With accounts. and in of in of in year income from in currency, year, growth Activewear flow particular we the sporting growth constant our through and improving as working increasing XX.X% volume. structural combination consumer currency. at last Activewear's savings product the

refer Release Turning for our and full the our FAQ specific to guidance, please outlook, to year document so we details. narrowed Press

investments be to market range. of international As the the expectations, given our range, of in drag I quarterly guidance prior end we outlook expect guidance trends to full-year to mix as has share, higher sales low Canada the lastly, within share or a our and sales the U.S. at with $X.XX narrowed tracking back natural as drive been a our increased With to referred the marketing reflect challenging respect EPS, market cash And we apparel earlier. flow our of our unexpected to Sears relative from midpoint range to August, highlighted the operations above disasters bankruptcy our from we impact per well the of to

up, to have believe an So inflection we our in approached we wrap business. point

offset challenges. large Our are enough now market to current initiatives growth

to to You QX returned QX delivered and believe quarter our we of as see growth, organic expect saw growth. revenue this we in you'll and this we in guidance another on as deliver organic

with, for that revenue drive the to forward, profit several And believe next are to back flow returns you over Looking add when years. I'll and visible cash drivers very inflection, this shareholder we call strong well-positioned turn we to the T.C.

T.C. Robillard

concludes Rick. our Thanks, That remarks. prepared

one you begin you would time continue like be taking and number questions a yourself then of that to now to question additional question, Operator? begin turn as to and re-enter to your a the Since operator call a the single allows. questions. ask follow will I may any ask will I'll limit queue the will to there We up, back session. question-and-answer who the now and ask over

Operator

you. Thank

question from Tracy with sir. Buckingham comes of Research. go Please Our first Eric the line ahead,

Eric Tracy

close last know FX given the point. maybe around just a Rick, Hey, speak guys. it to bit wholesale, accelerate holiday XQ all you assumptions high to X% for at midpoint and challenges back-to-school, more could, north provide up a would assumptions end. Barry. could contribute year, from the at end, of was hoping going at color you Good revs to the guide. afternoon. just best the bit organic like the is and X% about If to you Looks destocking be you're the a lapping least to domestic like the expected your I great. some low looks the on could But at welcome, of little at Gerald, I for

Gerald W. Evans Jr.

And coming growth of growth model as constant high growth and certainly in on the our saw well growth our upon again, in saw first in Champion continue at building currency. we foremost, we the And think diverse to you as XX% and QX through power range, I online XX% actually XX% organic absolutely. and see International do in expect Yeah, our to the what QX. in range,

seen we to retail would we play guided all to we haven't typical overlap as regard quarter, that last And the do to We As cautiously year, anticipated U.S. that expect went though period. through toward builds move business, out. noted, the have we you look to fourth we've the in we would destocking year. the how a it we holiday as as

expect ahead normalize further us while as our play will which retail do see give of That in to of we the encouraged track. spite year-on-year some some that the so biggest in growth U.S. overlap an in destocking the the that, And And it right October beginning and the that business the well, we builds. contributes assuming total as increase organic to of not period. us see U.S., we to still for out holiday we're weeks nicely We actually us, the in that are guidance and in are in that period. gives is growth confidence

it's in You and that were noting of about see point guidance together fact correct But some that that coming well. these the trends a and is as we've all we there good FX acceleration. like and business, guidance market, got feel support marketing our that the the the FreshIQ, we much of behind that of U.S. much added innovation platforms when in about behind further the and

Eric Tracy

offset, you said where could it, it's follow just Maybe digital. to with if point is talk diversified potentially and up. little becoming be investments just when – but the and I I need to able becomes speak that the a could made? the maybe just speak scaled accretive? then to clearly more Maybe And it incrementally that leverages model to international about is bit now mean, you still international,

Gerald W. Evans Jr.

Well, our growth it from of the standpoint in leveraging several now acquisitions. we its of see

and those of international Certainly acquisitions more the well. businesses, at as growth are we've as were growth of our justification, fast-growth from mid-single-digit Australian, businesses side grow kind businesses actually as synergy than Champion on While cost them both several rates. Europe faster talked about well a always the domestic the

and businesses our side, a as global coming our coming expansion. Asia deliver our of that to of strong on with lot as out the see intersects that's nice well Champion certainly continue that international as through initiative growth You international

key So we we geographies it. scale upon platforms the are build and in have seeing now that to most of

so that we And out as can we strategy. we acquisition further scale think our build with

Operator

Thank you.

Riley Susan with FBR. Anderson line next comes Our from of B. go ahead. the Please question

Susan K. Anderson

And market men's evening. quarter? on believe and sales. Did were down women's Rick share there, held wishes and include does that's give I guess, say the the category. Thanks best wanted to Good And on maybe drive the touch is And that also. color my I does FreshIQ how first I if the online? taking Innerwear helping to question. you both in Hi. to some then selling also for

Gerald W. Evans Jr.

breaking You're little up a bit.

I think I question. got most of the

So start. let me

about as industry. higher, standpoint the up on apparel how was the that me across big quarter. ask period, the in to the just and so a of on category from weighed weak we it domestic all one U.S. You back-to-school channels played weighed it mortar standpoint the was declines apparel category result it the the well, in weighed retail the Innerwear let total you that traffic. and and in quarter and out. mean brick decline across I And our actually in And of all, this a saw and little our Innerwear business, first category as the Innerwear other, quarter And frankly, is it category That weak standpoint. to apparel and performance or as we a wasn't take from categories it's gender of total total saw and results category it

which shares initiatives We to believe our do And well. FreshIQ the to fall that behind of were continue with it as is that related areas basics our you one see way. did of I to question. saw our for hold we So the some your in pointing example, and that's categories,

that are things quarter exited as we in We and, October getting in as destocking good as begin overlap that positive that quarter believe year. comments, to the prior also saw that in marketing efforts the my sign normalizing that shape fourth see put our trends, we see we and we good inventories we'll a continue we as experienced I were it we noted as to behind into the that's last particularly we're

Susan K. Anderson

on expecting And by be what should do Great. guys Nike Activewear as just And That and up any impacted you think in for believe? look much. the side. could follow forward? seen and you out Champion concern How it you out? growth that there's going good. growth the there sounds think promoting some Armour I Under how you're CX impact kind the one see we about do so Have U.S. you of for

Gerald W. Evans Jr.

bring global a I'll basis, on all, a in quarter. start with global it up I Champion earlier, to because heard Activewear really it. X% was globally driving and then global the first Yes. XX%, the market as of business think that I'll question, you our domestic our And down as up was business

tiers. And and anticipate we on by organic the we as the we of trends look on of bullish to market, in improving bankruptcy very But we Apparel globally. we We fourth quarter. or some core domestic QX. store department potential sequentially sporting the Specific toward in mass have saw global the category the look even fourth as as our lot solid we headwinds behind our the a our look was better total channel Champion we're experience up see as Activewear now quarter, we in kind to Apparel seen goods well. some the headwinds Champion business see quarter. so And expect did We basis, we experience to mid us we've a business in saw nice We category growth the the License driven XX% category growth and our in and as growth business. the and apparel TSA now Sports Sports

the recent globally will our then trends Apparel well we our very So that domestic business positive Champion of as as U.S. market. be acquisition Alternative in in by complemented see

Operator

line Andrew next Thank from the you Davidson. comes D.A. our of Burns and with question

Andrew S. Burns

the congratulations just And in afternoon. on the Good up a Thanks. on there. follow the acceleration quarter Champion,

here As opportunities U.S., what SKUs, look those more referenced flow about picture broader growth earlier, the whether you given like little all and international are, those time the in Champion more spend there? it's could long-term negative news distribution, what's the Activewear a what

Gerald W. Evans Jr.

not of Sure, standpoint story, been reassembled in our the of this for time. or I driving acquisition from it strategy, only time brand the but the globally actually of domestically you Champion, some as globally, but we've period brand part Andrew. the we've assembled Andrew, think first know

in. it's So that, as we've group build to geographies of a the business given done us broad

as as driving that driving Europe of so in lot Northern in it purchased And Italian push the domestic And channel the as trends some to now And in Asia develop even both seeing we're as Europe. solid there's mid-tier well. it we China. but develop potential into in up sporting business to through it business have continue We're as also the got business very opportunity now Asia in we in a is and a Europe channel. we're into then globally, the Southeast we Japan well the well department positive goods now and in it up and very mass we've across

well additional core as in our So distribution it's geography as channels.

Andrew S. Burns

Thanks. timing And you then opportunity the a incremental about in marketing question the speak see. on Can quarter. fourth you and investments the the

is well sort U.S. Innerwear, share dollars which incremental primarily as globally? on category where tough Thanks. you're growing putting maintaining into As those categories a focus of versus the

Gerald W. Evans Jr.

a The in a share media it of basis, the a on basis. in as in was Sure. marketing on market. U.S. global global support I increase What mentioned was was large

But drive as businesses to our business overlap other our some Intimates with clear invest in as investing are core see challenges as to well we there outside work to in well. customers of as of our opportunity behind innovations U.S. we the as some we well. So the businesses

So also organic we're and business beyond. growth for position to within to drive but us in that growth opportunity taking that drive QX, XXXX

Operator

you. Thank

McShane from comes line the of question next Citi Kate with Research. Our

Kate McShane

the the of for brick-and-mortar of trends weaker think during a How brand in Thank a just support regards maybe you of marketing back-to-school. much too, you versus level context the do macro that was taking question. for my really had lower question with to the I just quarter? general

Gerald W. Evans Jr.

and that and a going the channels category at it's real that we across Oh out the you held for that got got suggests trend trend investing I think it of fact you've macro macro Apparel multiple brands. opportunity come sort When behind brands. down that on it see was reason total and we drive share of And down a look to trends. we've was that being in macro frankly, as we our our pressure

Kate McShane

business I ask is Great. could versus question. Amazon much partner And direct-to-consumer one now online brick-and-mortar online your How the and unrelated if of business?

Gerald W. Evans Jr.

what for the XX% globally Effectively basis, and the it's our we've for Well, We've seen growing I and within us some quarter, it this is the business online on growing world. time, rapidly business high some time. talked for annualized we've is rate very it's about as in seen mentioned. a around $XXX million an

across So we've channels all only got geographies business, the it's categories, growing not a all growing growing and online across space. within but nice it's and actually all

we well own our plays as similar trends as our evolving brick-and-mortar. in sites pure see growth now both our and So

So a nice unilaterally. very well balanced that's it's business growing

Kate McShane

Thank you.

Operator

you. Thank

Our next with question comes from the line Wells of Ike Boruchow Fargo.

Ike Boruchow

Hey. everybody. Good afternoon,

just touch to of the First side the business. cost question. on I wanted

over next Booster, have into you I you talked know years. creation. $XXX million reinvesting net demand talking back today And the we you're marketing and driving about about some savings dollars incremental think hand, one two which of on So now

should So cost saves I one line top to, marketing versus those drive another? things dollars the know higher? need guess you we my question and drive marry The is, how against two

Gerald W. Evans Jr.

This Hi. is Gerald.

into of but that a key that, we unleashing said cash of going company. also was the certainly said the we invest reduction that. Booster, we back piece portion it about the full business of flow a me and potential to always take initiatives. There cost to our drive revenue were Let was

our a faster faster than other. mature to business. so stated investment We those opportunities, our step likely step that into those prior would key of investment, – to some as getting Some were online, One QX our saw savings. would And behind also you and stated drive brands and calls, with forth. and Rick were innovations, we little can up has came faster our view I would taken we've we in the so drive help think he that our move the of we than the

Ike Boruchow

Gerald. Got it. Thanks, That's helpful.

competitive within just Just you Gerald, talk curious you any Was you're you you peers from looking domestic of if there? question. to Innerwear a a prices are Are a follow-up about drop level? that about if your color how thinking anything signals pricing could any high at to seeing share? – take Just market in order down that any Curious that? to take back

Gerald W. Evans Jr.

course, from around in from early season been And period we But it's engaged but we've time stable you yet. seen, what promotion be in holiday certainly of We're out of holiday in the the actually of where have categories, – fairly will activities core this standpoint, period. the pricing's ordinary. the do a pricing of nothing is that, some some the

Operator

you. Thank

Our comes Evercore. with next Omar Saad from line of question the

Omar Saad

for Thanks taking my question.

the affect there. the Innerwear in trends to tend the kind sounds Just be the you wanted the know more is in seen update context bit that can past dive by pretty be I into which weather bit to U.S. trends of traffic that number, and next retailer you year, the going seeing thinking on sensitive a of still that? on if about U.S. of affected sell-through a know I sluggish could same results. around Innerwear other put and Are drag? destocking Any kind you've how little you most. Any back-to-school that'll you're like the the where was little a if

Gerald W. Evans Jr.

of retail so I we the was think Innerwear, see no, forth function frankly. as a really you weakness experienced Well, category, and a Omar, when that it

of impact top a It to in business, weak the more period the the sensitive category. just did at our U.S. true weather but less certainly on the impact With we total was of a standpoint, no, quarter-end of generally though so is weather it category driver encountered from that forth. generally certainly the primary Apparel weakness hurricanes and

Omar Saad

consumers it different I you Gotcha. with the the totally dynamics a going seeing see kind dynamic are are then, mean, on buying how – online? similar piece? is eCommerce on And Or of category you do

Gerald W. Evans Jr.

is the high U.S., a growth, kind to certainly stated faster and in standpoint of online we the saw example. a growing is which From online, of we online, growth performance than as the for earlier, the online XX% we on apparel growth, in very the continue space, see far category rate solid

we So think our paying in to shares, and leading challenges brick we continue are And believe our to hold mortar. really efforts we consolidate off in continue shares. to I some offset of the helping

Omar Saad

luck. for the Good Thanks Gotcha. information.

Gerald W. Evans Jr.

Sure.

Operator

you. next from with line the Mallela our Chethan Barclays. comes Thank Please of ahead. And go question

Chethan Bhaskaran Mallela

Hey. afternoon. Good

have Activewear Can and goal? X% for long-term to timeframe X% provide basis you that target. just the that and level sense Innerwear, how context on international of in growth of you're a growth So a you achieving a of thinking consistent the organic about about think you

Gerald W. Evans Jr.

from the to even we'd guidance, I you growth quarter, you the in Well, FX. of without standpoint as clearly range organic look that that as the in think our plus QX be X% fourth look

I that that we're seeing in So guiding you're direction. think

Now driven in the in success our near it's online. more strength as term well from as international our being

to I continue – begin well, out cement we the retail range U.S. really the to of challenges, time. and settling our to As X% it more as that that move begin more believe business, will see over that Innerwear and us X% the it in end you'll to to of see out our U.S. stability hopefully of higher

Chethan Bhaskaran Mallela

the benefit underperformance factors as up in follow see just those that quick expected? other the see the didn't the part a come just overwhelmed from And was much. on quarter timing back-to-school. was shipments expected and so Thanks you by Did you Great. through of or that shipment

Gerald W. Evans Jr.

way in as that the think benefit quarter not we a it, experienced added coming in I market the see of that we'd the we with fair question the the challenge expected. did it's

Operator

Thank you.

you stepped button? comes try line from question Tiffany again. your We'll her from Our phone. Bank. open. Tiffany, line Kanaga the Could She mute check is have Deutsche with of your away may next

comes question next Carla from line Our with JPMorgan. Casella the of

Unknown Speaker

May is for This Hi. on Carla.

state and going. on any opportunity and that's the increased Just distribution kind guys checking how wondering Champion of growth you there? of in And see

Gerald W. Evans Jr.

Yes, we're in we're our Activewear really within growth. in globally solid our the is key about growth it's business driver And expected in and a our U.S. Champion of excited Champion key seeing well. one forward. very growth quarter, core drivers the the XX% going growth strong growth And as global Champion

on started we're that driving on to that brand think So really business. truly getting We where we're very it just can bullish be.

Unknown Speaker

that transactions, targets (XX:XX) recent And to update any on just or there leverage have? related it. Got is given guys you that,

Richard D. Moss

So Rick (XX:XX) this is

Unknown Speaker

Hello? Hello?

Operator

by. stand Please

Unknown Speaker

Hello?

Operator

by. again, stand And please ladies gentlemen, and

Your will Difficulty] will Until momentarily. hear then [Technical Please the stand conference resume by, momentarily. (XX:XX-XX:XX) resume music. conference we'll

Operator

resume. may you And

Richard D. Moss

Karen. Thanks,

this So Rick again. is

be did our at net should $X summer, million have experiencing steadily plenty around up we do that were deleveraging balance acquisitions. to – to the basis we're be quarter to I'd credit that and EBITDA on sheet. you the a look so capacity right to our we end the as we of under cash saying, acquisitions our flow they in like we since with that come When and our times. we billion also ended have $XXX we the that compared – now, we note been capacity year up. On agreements, as the our build to able sheet acquisitions like do between feel balance of we've we last we look As to three debt by

Unknown Speaker

Okay. Great. Thanks.

Operator

Deutsche Thank Kanaga from you. we'll Bank And again. try Tiffany

Your line open. is

Tiffany Kanaga

in of And much or my exceptionally what's driving that examples well? color the or working the and most for categories? regions, see specific as are to expectations? brands of the question. Thanks more products where extend touched you but growth in runway some your of incremental on I specific Hi. provide you around outperformance in do it, know terms can beyond international brands terms some you so taking Such

Gerald W. Evans Jr.

there's answer. Sure. And couple a that elements of to

up the in strong from constant initiative, And of is Asia being expansion Champion our Champion out runway question by currency. the coming on more business of and we there as total coming see Global First in expand the look even There's strong we lot well business that's XX% business much in when solid all, international was your our as driven well. that quarter Europe very a growth our in across very it Champion as to further. performance of to

Innerwear very a was expand a opportunity America, we growth across well. in model. And it's from in nice the own both those our It continuing they're a their higher to On own kind business, a growth of businesses it we've side, when their driving a it's as Innerwear it's we we've solid which And year saw direct-to-consumer as results doing Australia very bought rate. old, to of their the mid-single-digit our in perform very got is Latin acquisition, well, also position, combination wholesale behind solid and then and through categories and share business, growth performance nice into stores regions and both America. Latin but seen adjacent and online, business

well America. of we've come other in growth some original in international of to a through some So a got in largely coming tied of some as balance Activewear out acquisitions markets you Latin markets nice combination through expansion see Innerwear that our have of nice businesses got we've – of as key

Tiffany Kanaga

Thank you so much.

Operator

turn Thank that floor the over session to to Hanesbrands And any question-and-answer our comments. back for you. I'd like for closing concludes today.

T.C. Robillard

thank for today, forward we to to with like attending look Have and call speaking night. everyone soon. our We'd a you. you Thank great

Operator

you program, conference. may your have and day. today's does Ladies participation and the thank Everyone, you disconnect. for in This a now gentlemen, conclude good

Hanesbrands (HBI) 1 Nov 172017 Q3 Earnings call transcript