HBI - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the Hanesbrands First Quarter 2024 Earnings Conference Call.

[Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to T.C. Robillard, Vice President, Investor Relations. ahead. go Please

T. Robillard

and call everyone, the quarterly Hanesbrands Good webcast. welcome conference and investor day, to

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

for On associated to make risks These risks our our and certain conditions, related environment. and current our the Champion differ materially. on initiatives, anticipated including macroeconomic forward-looking statements, prepared remarks beliefs to plan, today, we deleverage results to the on call may evaluation These and Full demand our based either time uncertainties or question-and-answer performance our are of or those subject global in strategic the frame inflationary in consumer the include to statements execute and that expectations transformation alternatives Champion the Potential may business, current are our our ability plan actual to successfully session. ability dynamics, strategic cause

which not with does include undertake in also releases. as to only well those are on or the These speak risks made. our as to which company they which our update the any various detailed may filings SEC, website found time news statements, forward-looking be in The at revise our

action-related charges. guidance our financial and other all today's exclude restructuring to noted, and references consolidated otherwise Unless results

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

Officer; Lewis, the our Chief on Chief Officer. and Steve Bratspies, Financial me call are With Scott our today Executive

we'll For today's will questions. and Scott and some it then provide call, to remarks, up open your brief Steve

now will turn call Steve. to the I over

Stephen Bratspies

and Good T.C. morning, everyone, call. welcome our you, to Thank

cash profit, outlook, profit flow reduction of of outlook. given strong with is our Hanesbrands our our at the our generation results, year full operating And leverage. and guidance, delivered solid further sales better-than-expected to anticipated. we midpoint The positive visibility our first quarter flow reiterated as year and cash unfolding operating

In market addition, in Innerwear. we strengthened leadership position our further

the on lower and margins progress fixed shareholder believe Champion. place cost we our in earnings further putting And over positioned we're several to with a years. continued reduce for positive in structure, inflection next the We flywheel our growth and value creation debt, accelerate well

Innerwear businesses. ahead For I'll today's see call, our I'll opportunity discuss we on of touch us. Then and Champion value creation briefly the

business. Innerwear global our at Looking

limit pressure sales As remain under their expected, apparel stretched as globally consumers spending.

However, despite is strategy market. the as consumer focused headwind, centricity our strengthening working Innerwear on market-leading share and of outperform And gain we we the our businesses.

our Hanes brand greater our launching of second successful seasonal marketing pipeline, record We're be increasing With leadership M, support further position space year another bra programming of portfolio. our build to gain consumer-led product We're and the our Bonds consumers, and platform solidify brand new SuperSoft. expect of phase we shelf robust called including incremental shaped and innovation innovation, Maidenform Originals relevance brand to innovation. launches, with future with current younger the investments XXXX

on-shelf inventory to service structure. better cost well operating improved we including fixed our availability and lower SKU parallel, management capabilities a discipline, improve In model, as and continue as

our strategic our of brands healthier. result a the years, work over As last are X

resonating is consumers. with Our is and product full pipeline

is levels. gross to back historical Our margin

growth. particularly our have market and over share, this than We're market competitors, investing the with category reflected in seeing and as against as positioned returns decade, more we're points in we gained all of XX consumers younger marketing of another in basis we its a steady share trend the U.S. our in women's gap widening and the historical men's to for of both across quarter well the we're during We're growth

to implementing profitable growth. and position performance Turning designed Champion strengthen brand plan enhancement the for long-term We're Champion. aggressively our to

on heat our younger our channels. We license is kids' product business which building including plan We consumers, brand new portfolio. strategic focus in particularly moved also to optimize well strategic with our offerings a key continued the as part model, collaborations targeted of to as

ahead marketplace is highlighted marketing seen product as quarter, new Champion we but And working. we've It's that Moves last to build the You fall/winter some our green increasing What shoots momentum offering. segmentation we're on investments strategy early, of our our campaign initial of

previously fully will stated, actions to time take our it we've to for strategic As P&L. translate the

constant basis. first decreased on quarter Global XX% currency the Champion sales a in

During to the This this, move XXX kids' move for the basis Normalizing we decline. Champion's saw accounted approximately for model. improvement planned sequential the of strategic we of business our in a trends. quarter, year-over-year began a license points

We normal actions, its expect moderate returns our in to and business sales we in trough to to collegiate cleanup our continue build the momentum decline half the we to in quarter. we seasonal as And on to past move our sales Champion expect channel second continue cadence, first Asia. the

Champion With is the alternatives strategic business, respect global our progressing review as process to expected. the for of

We appropriate our we to broad seen updating share. continue diverse interest this at while to of you strong news committed evaluate the and add as nothing when from group to remain right And there's path time, forward as specific there's global we've parties. to

creation the Now I'd years. the opportunity turn significant value several like over see next we to to

The generation. been underlying this financial model margins strong company with and cash of consistent always healthy has

market environment a have the challenging masked visible. consumer While again time, demand is once for us strength and some inflation, disruption

and were brand inventory as We've our discipline. enhance we've and and taken And over years, of necessary supply data advantages, operating chain more well building, which $XXX SG&A. our capabilities business taken past We've of actions half costs, in further and added around million extended the analytics X We models. management we've new built as across SKU talent. streamlined the out financial nearly than fixed to our

and cash With positions free value to capital a several our commitment next for one consistent over to to cost invest leading creation, growth, brand as initiatives. our created that drive structure, we in shareholder years growth have generation we faster margin, positions, reduce reestablished the incremental lower debt, of accelerate earnings a up flywheel deleverage believe fixed well balance sheet gross us as

close, team. I to like moment thank Hanesbrands take a entire and I'd the As

our market. is and Your to show beginning a commitment transformation in to difficult We first dedication, in journey solid apparel quarter teamwork our a consumer results. and delivered

company, the operating well value believe We we have for over strong positioned we for several long-term the we're outlook to and year, unlock visibility to years. financial next the achieving our and the models strengthened shareholder

the Scott. And with over to I'll call turn that,

Markland Lewis

cash ago quarter a we've or of business. out down progress of met the look level, consistent laid key We're At delivering Steve. results, core generating results taking of solid the were are exceeded a debt reminded and I'm reducing across metrics. all we back objectives guidance We're we're high Thanks, financial we Gross made we we as as levels. paying our the out. I And and first our and year to where costs on flow, margins delivered historical at leverage.

and growth as expected We innovation, line are levels We're position also of model. growth rolling top this as time. more well continuing even which to year of We're over earnings strengthen our product out generate bottom for us strong consistent to is investment. increasing all operating greater brand

our financial today's and position, our outlook. some For the highlights on on then I'll from thoughts I'll call, touch the improved provide quarter,

For guidance, FAQ point news release to additional document. on and details I'll our results you quarter's our the and

quarter. our XX% details Activewear discussed within Looking prior timing base million we of business million $XX decrease million shift at $XX strategic collegiate the from year. items all our segment SAP $XXX of at a quarter. these, from kids' comparable of range. the call. the customers sales which of U.S. billion $XX year model, was Adjusting sales This our FX, first versus orders last discrete quarter's year-over-year Champion the ahead the on from the last a that of first implementation license nearly from shipment or and the our benefited divestiture Net in decreased business, year's the $X.XX accelerated was this for of quarter. XX% guidance within approximately Of the business of include hosiery decrease, last was midpoint to approximately was and timing-related These represents million of

expected, to retailers. Innerwear, at Sales below This category Looking outlook, driven our decreased Within by year. compared inventory U.S. level basis by the remained prior quarter. X% in higher-than-anticipated as by a the challenging as select of sales was actions points segment. roughly XXX management

we However, seeing is working. are that our strategy

winning in are marketplace. We the

of trends another basis share in as we the XX points the quarter. point-of-sale Our outperformed market gained

by decreased sales In items in in our brand million prior Approximately decline both to for year-over-year quarter. year, was $XX the decreased or Activewear outlook. the represents the was prior nearly with U.S. sequential approximately million which or line $XX in year the as driven Activewear XX% the our improvement which compared previously a underlying in of the business, and X/X mentioned XX%, this, Activewear segment. trends Adjusting Champion timing-related sales

our in X% our currency line which decreased International constant And to last with outlook. compared sales business, was in year,

in headwinds decreases as demand China America, macroeconomic and and than growth in Latin quarter, in regions. Japan Europe more the For by were these offset impact continued Australia to

basis of margin XX.X% in coming strong, margins. to points our Turning outlook. XXX was Gross above

business increased savings As input driven benefits mix. well as basis initiatives the compared cost points XXX year, as to by gross from costs, impact lower from margin last primarily the

outlook. U.S. as which compared expense global to marketing expense expenses year, investments, With helped was savings primarily line disciplined lower on respect to XX% Innerwear in a Champion in from our the and management. businesses savings the increase by decreased SG&A, our The These benefits million last and quarter. initiatives we with fund focused cost $XX was brand in driven

driven of of an quarter, performance. and This X.X% the basis the our increase year last for strong points margin of operating XXX resulted over in margin expectation, ahead an gross by

the million. per ahead for was of earnings the expenses and loss of Interest $X.XX, was P&L. was which share were our remainder outlook. at the $XX $XX and Tax a of other million, quarter Looking expense

and flow the Turning balance to cash sheet.

this cash continue $XX and million. in This first which operations was on our has by management. We lower strengthen debt-to-adjusted debt, And of We of all billion flexibility $X.X reflecting quarter turn by year. a last led end from disciplined end than was strong to at year. profit EBITDA working improvement and to the driven capital at more quarter. liquidity the leverage last of was down the $XXX the quarter. net balance the The was generated the flow position X.X paid performance in we a financial our debt basis, Xx Leverage of of better-than-expected driven nearly of our than million sheet lower

turning now guidance. to And

of adjusted operating sales, for cash We profit, ranges. of my midpoint flow. All will operating results comments based per be year reiterated earnings refer and on and guidance full will guidance our to the our share

Our view for call. unchanged since year the is previous our

environment consumer the we our macro remain the expect XXXX, year-over-year with trends we sales challenging in that year. progression for highlighted the to through in we reminder, a As categories as move

growth We to operating remain which uncertain XX% as have highly we continue consumer guide, believe our confident over we year last appropriately profit environment. derisked in in this implies

based delivering our on in and costs input cost operating $XXX to of balance confidence proven the rest sheet Our to profit that on exceed our of our visibility year to $XXX continue savings the million million programs is through expectations.

in outlook, for second X%. margin last operating constant share to and expect With expense last interest year, initiatives. said, decrease of of costs headwinds, to the quarter by expected nearly decrease from a driven reported savings and organic basis balances, X% to Adjusting X%, to compared approximately lower impact quarter year. currency FX we profit we sales prior input And a expect our That divestiture we expect to operating over the benefits respect expand earnings the from approximately decrease debt increase cost on lower to second approximately and to points U.S. basis hosiery to the XXX resulting are as per to $X.XX XX% compared net sales as our $X.XX year-over-year, year. given loss

So in as year unfolding is closing, anticipated. the

meaningfully in will strong higher confidence to created interest and believe flywheel This drive drive down reduced full multiyear investments expense, have years. has shareholder our next and We several returns earnings visibility growth. which we to and year and the debt, increasing significantly debt a lowering we're outlook. over generate paying We're

And the I'll with to that, call turn over T.C.

T. Robillard

We'll remarks. as now questions Thanks, will and allows. continue concludes prepared Scott. your our taking begin time That

turn session. over operator to the I'll the question-and-answer begin call the to Operator? back

Operator

with first Sole Our from line UBS. question Instructions] [Operator Jay comes of the

Jay Sole

there, elaborate give Great. see on in on your little but you could that recovery? a us How you this feel into remarks more the just would maybe the can a prepared Steve, with And just long-term company's touch little coming bit on visibility algorithm earnings be you margins color profit do you back. have it? If you you touched great. bit, the like

Stephen Bratspies

Jay. Thanks,

are think expect that and the you when year. both continue in the And year-over-year remarks, as highly operating improvement margins. in that we have stated in we quarter think each guide we confident about for the profit, we profit operating I to gross

savings guide programs doing The that we $XXX cost sheet appropriately. the macro balance the remainder and consumer we in continue us, so the have there, confident got the think we that I the overdeliver, they're million look year, But we input the hard when million really environment is we to of team in challenging going place, visibility we're costs for factored through remain to the to the that that at thank we've the have which on $XXX work for covered. that to

see think I And risks appropriately. we

savings in. the We haven't cost all put

challenging good it can are forward. where environment, despite feel pretty about where and So going we we sales a we take

Operator

will from line Lejuez question Citi. the of Paul come next Our with

Brandon Cheatham

for This able wouldn't you wanted on you in be expectations. year? for back guess a for half? What achieve quarter are Brandon dig what you on puts the to Why gross Paul. expecting takes some to Cheatham the the rest just and is rate similar I there? the I of margin reported of are the the above

Stephen Bratspies

then don't Why you comment. Brandon. start, Scott, Thanks, and I can

distribution, our key have cotton, are happened on you of and I the business year. confident very really when the balance it's we it's gross already whether visibility in about of throughout year, good mix changes for the to we think rest whether And think sheet. there's that, the while some components, it's margin the that

off what's So roll to we going year. know throughout the

pleased know We already. a about relatively we our but is. And actually that strong is confidence can feel where So based really lot on quarter overall, had there that with we obviously, been. our a think first really we've business XX.X% at we we good that about are really and get conservative guide of where what

Markland Lewis

Yes. And point I The recall our year. have you a little the a rightly, color just this, business, we of the quarter, like bit to higher heavier quarter great in first the of mix had add in to think -- retail. International said, for like Steve a which of something first is a start concentration probably mix and sales

we also that And a so in higher that has first rate margin SG&A a rate, so the higher but gross quarter. saw

the the as trend visibility year, year. seasonal normal a That's use perspective, second in And to of as quarter, the XX% Steve rate to and think XX.X% to said, and like think quarter a modelings over that I the of about rest And cost. the year you of course continue And to see year, the about margin from first the would rest full guide gross margin. the a you XX.X% great then we I will gross the at you input rate. to that for you for the have XX%

visibility. great Again,

what's know We to identified. cost going the have We roll off.

that place. derisked in Again, cost guide. savings that We profit we've have are

a that of know we that confidence us deliver profit we gives lot can number. it So

Brandon Cheatham

to it. savings? just pass any And pressure pricing clarify, those through to some seeing not Got cost of you're

Stephen Bratspies

last Sorry, you we lost part of it question. say your the again? Could

Brandon Cheatham

Yes. And some the Sure. to ]? be costs [ any not clarify, to seeing pricing pass in you're you receiving just savings through may pressure of

Stephen Bratspies

have year. we're we we're cotton, on And We really think through position. good going in No, to really actually Yes, cotton. all a we the be. way this where visibility, good know

not any this all. if that incur going year So to be there's movement, anything we at it's

Brandon Cheatham

there line restocking for decision and right down And more to trends to one heard retailer can the quantify sorry, channel POS destock? I there breaking continuing Because to continue now like you can they take is now. potentially -- but inventory? feel opportunity eventually? you're them that destock my Okay. while a off, And Is seeing the about if we've that

So pretty ]? would low you suspect inventories [ are that

Stephen Bratspies

Yes.

So let POS talk I'll me about talk inventory. Then overall. about

of the than was. When on the month the March you quarter, came -- through of we beginning was softer when quarter the come POS

that the business. the of of is just Some strengthening

Easter of flip there's Some that is an there. in

And get was as but into start we're in the January we than starting come that trend -- Easter So more we through POS February. April. definitely see to and positive as stronger March foot, to

pretty is POS doubt There's about our outperforming, that, no about and that's feel and but Category we So good struggling. the here definitely it's soft, still go performance. is got we points our POS basis why as we XX forward.

It is We we an about expected we some it's that turned a always to there. There's adjustments about ongoing made, anticipate business When the expected, don't $XX you think and guided, to reduction than inventory. this lower are to expected. it's changes and a million shift. out movement planned but this don't be -- little be we we but a as challenge of think we more than $XX QX only inventory in some million model being inventory,

always built assortment we to of going Will we're help working it for to there. have forward. on in that the there's We've We the closely or opportunities a to gaps very Look, trying But not data that lot and front. out relationship be we find find our do have a to where restocking? analytics opportunities our all put inventory partners with in with down and us gaps work store way really really into guide a restock a them, level. overall, partner inventory good

Markland Lewis

comment more did over standpoint, maybe a Yes. on may about the peak. Because we one year, like cotton. from price last also inflationary about we be And pricing for the said earlier fully you point just asking not

off, pricing that not the stabilizing of side pressure on again a and that's anticipating So product. we're

Operator

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

Irwin Boruchow

guys? of most and other helpful pieces kind about Kind kind on a different of been be little are would categories more varying on There degrees that of XQ if to you Maybe, some being Innerwear curious have of of color bit maybe of the reach key pressure. think that on some you're granular out think, underwear you can of some Steve, the you kind a And can your the bit I if of competitors, you demand. and kind of -- to when any under the just parse category seeing little talk into beyond.

Stephen Bratspies

Sure, Ike.

across share XX think at categories, consistent most you when at POS. you to which basis As it's pretty gains, business, the consistent about performance pretty add if up our that you points. macro look at the And level, look the

see it's that for outperforming is other underwear which You that is strongest to men's than probably to category been more we're will company. got in obviously, space with SuperSoft, businesses, extremely and all going innovation the continue, doing the always that. And We've into lean this well.

happening and launch the with the about encouraged Maidenform with I'm and coming of year. what's M with the at brief Bali end of

So the we're for back looking some impact on half that. in

There's board. overall, major categories the month takes in but the differences But consistent. relatively it's there's and X puts not over across another,

Markland Lewis

at We you we was brand that to trend about. coming. the Steve look continue. supporting got moderating going maybe Yes. give by And U.S are to we're had the the but And QX. a Innerwear category standpoint. for don't X% the segments, bit to guide that We've outperform a me that talking all directions little add continue you let business. But as guide QX, I guess, innovations investments I on, too expect the know again, some from also, we things decline in

a to you decline, all year-over-year X% U.S. of guiding, think in. directionally again, X% Innerwear, So factoring that about as to the we're

we're segments, to And about just touch then the side. real International quick on talking on just while

say Activewear XX% the a digits that say, that earlier basis essentially I digits. currency an down the first when to constant to, guide the in timing basis. down QX, items you and a you about talked single remarks. high As compares the And quarter in on take factor on out we in then I would adjusted would And modeling U.S., that on about basis on mid- and for mid-single would to you reported down flat be think

Operator

line from comes of Swartz the next David Morningstar. question with Our

David Swartz

getting and under Australia you better? in that if us know it pressure? trends is in any can remaining seeing seems differences if it Firstly, like let Or business you're is

are Secondly, not of you you maintain and be decided to that business? will have control selling confirming Champion the

Stephen Bratspies

with it is on The some of So we're it's particularly to in the there do business improvement. bit over the see Australia, has and business depends things continue wholesale and we starting softer, little and starting business Bonds in of improvement, really to see particularly business DXC strong over grocery been there. remained terms -- strong, The the channel. little a particularly bras to but a we're bit

some little there half year expecting the are interest this tax improvement, some rate bit although We anticipating there. of is and of relief uncertainty a right back in

the get as But the second go we comps easier half. into and compares

I the So doing with I'm that the over to starting Bonds the business really there. team baby you, we rebound. anticipate bra innovation would shaped is I'm excited in product. tell work pleased and about

leaning we're in. So

going We right have advertising on now some are that aggressive are campaigns that resonating.

So I feel good as forward. we about that go business

parallel it. In the we're announcement us there's selling continuing. The as question terms have. today in right We're ask process any we expected. The as past, is follow to progressing and as for business not in to continue terms And is we're as the protocol will evaluate same to news implement have update said when us or we you of long-term you process we keeping growth strategy, of to the the forward. we path in appropriate And going Champion, we the always that, the continue we making share. to going like will with

Operator

Our from next Kearney Paul of line question comes Barclays. the with

Paul Kearney

kind over investments doing and angle On and marketing marketing concentrated of are you're the the timing the where investments those differently brand the the through year. and today what of opportunities you're making,

Stephen Bratspies

Sure.

the has first couple the built over And years. last of in As been pretty we our quarter. said, increased investment we significantly this

invest, long our these now the in an a brands. on have brands. to to while to into to of continue want brands brand-driven innovation-driven think you lean you if we've you you want company, period time. things been I is be And have company, consumer-centric been your focused of and that to One a a be be for to for a And have strengthening want underinvested you company,

around in the to it's The Leverage next really This news last around stage about and bulk Originals, which brand, news. has around Originals. It's to continue talk been the our term was M is near And by the innovation. year be of of advertising but around SuperSoft. is the going year, the Maidenform.

the Champion positioning have And to going to and half, we On and brand fall/winter in line our our side, as that how really it's Bali about the talk continue the new brief. that's we'll -- back coming what and brand along leaning when with have in represents forward. we go that,

about think our us you for you it best when I it. And that's branded as behind media, advertising, leaning about So think about way the to think our think about talk innovation. in

The the upon continue mix going change depending brand. to is to over and time

It go TV differently Hanes market more to direct-to-consumer different Champion whether will in to will show channels. channels, will market. or than So up go that's linear that's

that. of we're what results the me see to starting is confidence And gives

first when of started So the for take year, example, we that POS XX% we literally lean jump M, that business. in Maidenform, to a this into part in saw

So right. messaging we've confidence is that got our

right, to going over we're continue those to Our approach time. is investments and make

Tying enables investments. to to our we continue way go that cost as balance we position the costs to us going out, about gross SG&A forward. those the fund the margin earlier, of focus we find back take continue and the to And talked we're things to some improvement, right

Operator

of with line the Hale from comes Barclays. question Holden next Our

Hale Holden

segment the in set. that the your us maybe the it kind some of you what quarter. about this could sales Innerwear necessarily whole couple but segment. not sounds And wondering, if was about declines seeing U.S. of industry, we've quarters, you've quarter last you're opportunity and The sort I talked dynamics next And into give stabilize seen like in of

Stephen Bratspies

Yes.

I Overall, you demand think think in -- whether it Innerwear across more when the challenging and for the where broadly segment, consumer apparel We definitely remains We've see I consumer environment think U.S., the whether board see their think you Consumers is. about interest about that's have Europe, Australia. of several value. you shopping definitely inflation. POS. seeking for and rate in can are those that activity headwinds it's events, impact, seeing the quarters, been to

the it's long-term look a to X%-plus is which going that to perspective, at we got When I've growth. rebound of from a confidence category historical ton levels,

You've the right back 'XX, seen when the challenges rebounded. there, impacted, 'XX, the that market then it to all and you go in category's

expect We to going time. that's happen over

But look lot of at We're historical category I back at that XX%. some the years, ever this to a such average, If hate performed moderate since. time, rates. stability disruptive. go been to as just incredibly on we far, been rate we XX%, will And long-term over challenged see forward. and XXXX, to it's we over massive last X have It's expect you then the go a category that to growth, time. starting that perform its run confidence was

Operator

Our next with question comes from the line of William Reuter Bank of America.

William Reuter

what into? was talk whether Where they those a in department in, decreases biggest channels, could wondering declines were stores. channels, off-price did little channels those For the see of were the if about sales bit versus I specialty decreases of Champion, kind you whether sales you mass your

Stephen Bratspies

channels in going a In the Thanks there. kind Yes. lot across U.S., of And can rebuild I really I really fall/winter ourselves overperforming. think question. we're for do help with And by cleaning been all where that's has it varies place up out most that generally about it's start coming we've you that's to of or geography the and we of think line terms that to to earlier, excited we business channels that's as mentioned prepare forward. the are move to repositioned the about the it, And forward. to When inventory go channels. and finally cleaner, a think as

with conservative the are I being just wholesale challenging. challenges they're the inventory customers past, in and Europe, In has forward. going been challenged And they've -- been think in

and opportunities Asia, up. seeing is have grow, to Japan where last we well. to from China rebounded those pretty When We're years. markets at look been they've performing there is up. Asia of is the continue couple

it's So different all across well forward, going positioned think channels. geography. by I think But mix the I a we're

the in at our look the quarter. up you U.S., XX% first e-commerce If in was business

programming that's I differentiate channel. So -- momentum weren't And we're by missing And is what by it channel past. we have in don't more the starting to enough product. there. we specific. now importantly, has We We weren't by some been and enough channel think build that the segmented

and And forward have We've that's more go the going approach very product a terms we us to in help are for that. past. of to on make in to fit, win And global global all the well how on things different All going channels, what's those us it's the really difference product, on we platforms accomplishes haven't market. that to across color. done we instituted something going that

William Reuter

on I specifically a impacted one, intentional sales reductions there guess off-price that of the Champion? little that. to Were just more

Stephen Bratspies

have play in the intentional. of opportunities go consistently way. for as We're nothing through the and think we'll that or been across inventory high channels there. lot No, we We channels, looking very and can different managing brand to continue activate through a managing positions effectively

Operator

last today will Coppola with question Our come Michael from JPMorgan.

Michael Coppola

out you And impact The payment for to Champion we licensing was there cash you I that? of deal. revenue. Did was kids know any that receive first on one kind called had XXX-basis-point the guys a

forma pro that Just about and for margins how going we think forward. revenue

Markland Lewis

so something. [ of stream a model, Yes, going transaction where a a model to a that ] more really sold license get income line Basically, top wasn't we forward. wholesale it's we royalty

Stephen Bratspies

in forward. it we as -- QX, you'll that was moderate that biggest the And and will will from headwind see go be

Michael Coppola

one, year. reaffirm paying $XXX down know this debt you I you about second on that And Okay. plan kind then of million guys Great. the of

prefer it you you're you loan any -- thinking way that or that? If on -- Or for go as does comment well? bonds after any about to where term

Markland Lewis

of million Thanks Again, got coming really million cash the last plus year good year, talked $XXX in we generation. through. We about coming driving this the about Working paid debt. feel question. another $XXX Great. profit Yes. capital your down for is We flow that.

of we As apply debt a that to you pay debt lot plus $XXX think with of about how flexibility million structure. have our down,

credit senior facility. a have We secured

are penalty. A prepayable Term and the any that Term have We without B loans

the And paydown. on prepayable, that's what focus debt so and it's on, that's higher-rate debt, we'll

Operator

remarks. Robillard T.C. closing to today's concludes the I'd That session. question-and-answer back like call turn for to

T. Robillard

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

Operator

call. conference you Thank today's for concludes participating. This

disconnect. You may now

Hanesbrands (HBI) 9 May 242024 Q1 Earnings call transcript