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Hanesbrands Inc. (HBI)·Q2 2026 Earnings Summary

Executive Summary

  • Primary documents for Q2 2026 (8-K 2.02 press release and earnings call transcript) were not available in SEC or company IR feeds as of Nov 20, 2025; therefore this recap anchors on S&P Global consensus and prior reported quarters, with explicit gaps noted (https://ir.hanesbrands.com/events).
  • Wall Street consensus for Q2 2026: revenue ~$0.971B* and EPS ~$0.235*, based on 2 estimates each; implies modest decline vs Q2 2025 actual revenue $0.991B* and EPS $0.24* (sequential step-up from Q1 2026 EPS ~$0.063*) [Values retrieved from S&P Global].
  • Near-term narrative drivers remain margin expansion, cost savings, and tariff cadence discussed in prior calls; merger with Gildan expected to close late 2025 or early 2026 remains a structural catalyst .
  • Until Q2 2026 materials publish, estimate-beat/miss risk hinges on gross margin execution and SG&A discipline that supported prior outperformance in Q2 2025 .

What Went Well and What Went Wrong

  • Note: Current-period qualitative detail cannot be assessed due to missing Q2 2026 primary documents; bullets below reflect prior quarter context (Q2 2025) to inform expectations.

What Went Well

  • “For the third consecutive quarter, Hanesbrands delivered better than expected sales, gross margin, operating profit and earnings per share… we’re raising our full year guidance.” — CEO Stephen Bratspies (Q2 2025 call) .
  • Q2 2025 revenue $991M beat estimates (~$970–$973M) and EPS $0.24 beat $0.18; margin expansion driven by cost savings and lower input costs .
  • Raised FY25 guidance on sales and EPS; highlighted new category growth (loungewear, scrubs) and brand investments at >2x four years ago (Q2 2025 call) .

What Went Wrong

  • Promotional activity, mix headwinds, and FX pressures were cited around operating margin in Q3 2025 outlook context; tariffs expected to begin impacting costs in Q4 based on inventory cost flow (Q2 2025 call) .
  • Continued category pressure in intimate apparel and competitive dynamics vs private label discussed in Q&A (Q2 2025 call) .
  • Limited analyst coverage breadth (only 2 estimates for Q2 2026) increases dispersion risk around consensus, complicating expectations [Values retrieved from S&P Global].

Financial Results

  • Note: Q2 2026 actuals unavailable. Table compares Q2 2026 consensus vs prior actual/consensus for context.
MetricQ4 2025 (Consensus)Q1 2026 (Consensus)Q2 2026 (Consensus)
Revenue ($USD Billions)$0.886*$0.742*$0.971*
EPS ($USD)$0.196*$0.063*$0.235*

Values retrieved from S&P Global.

MetricQ2 2025 (Actual)
Revenue ($USD Billions)$0.991*
EPS ($USD)$0.24*
Gross Margin %41.20%*
EBITDA ($USD Millions)$160.0*
EBIT ($USD Millions)$149.9*
Net Income ($USD Millions)$81.6*
Cash from Operations ($USD Millions)$36.3*

Values retrieved from S&P Global.

  • Prior Q2 2025 press release highlights: Gross margin 41.6% and adjusted gross margin 41.2%; operating margin 15.6% and adjusted 15.5%; EPS $0.24 beat .

Segment breakdown and KPIs for Q2 2026 are not available pending release of primary documents.

Guidance Changes

  • Q2 2026 guidance details not available. The last published guidance update (Aug 7, 2025) raised FY25 revenue to ~$3.53B and adjusted EPS to ~$0.66, with tariff assumptions embedded; no current FY26/Q2 2026 guidance published in primary sources yet .
MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales ($USD Billions)FY2025~$3.50B (prior)~$3.53BRaised
Adjusted EPS ($USD)FY2025~$0.59~$0.66Raised
Operating Profit (Adjusted) ($USD Millions)FY2025~$485M~$485MMaintained

Earnings Call Themes & Trends

  • Q2 2026 call transcript not available. Themes below track narrative from prior quarter calls to inform expectations.
TopicPrevious Mentions (Q2 2025)Previous Mentions (Q3 2025 scheduling/IR)Current Period (Q2 2026)Trend
Cost savings & productivityEmphasis on structurally higher margins from productivity and lower fixed costs; reiterated brand investments and category expansion Continued focus per IR events; Q3 2025 results posted via press release only Not availableImproving margins likely if initiatives persist
Tariffs/macroTariff costs expected to begin in Q4 due to inventory cost flow; macro inflation noted IR guidance tables reflect tariff assumptions in FY25 outlook Not availableWatch for Q2 2026 tariff impact commentary
Category/brand strategyGrowth in basics, activewear, new categories (loungewear, scrubs); investments >2x four years ago IR highlights and press releases sustained Not availableSustained investment expected
M&A/regulatoryAgreement to combine with Gildan; closing target late 2025/early 2026; regulatory approvals pending Q3 2025 IR noted no call due to pending acquisition Not availableTransaction progress key narrative

Management Commentary

  • Representative prior-period quotes (Q2 2025) shaping expectations:
    • “For the third consecutive quarter, Hanesbrands delivered better than expected sales, gross margin, operating profit and earnings per share… why we’re raising our full year guidance.” — CEO Stephen Bratspies .
    • “We won’t be really experiencing [tariff] cost until Q4 because of the inventory… and the way cost flows off our balance sheet.” — CEO Stephen Bratspies (Q&A) .
    • FY25 press release emphasized gross margin expansion from cost savings/productivity and assortment optimization; lowered SG&A as % of sales .

Q&A Highlights

  • Prior Q2 2025 call themes:
    • Tariff cadence and timing; management indicated cost impact begins Q4 due to inventory cost flow .
    • Drivers of outperformance and raised guidance: scaled cost savings, strong plant productivity, visibility into back-half input costs .
    • Category and competitive positioning vs private label; emphasis on brand investment and innovation .

Estimates Context

  • Q2 2026 consensus: revenue ~$0.971B* and EPS ~$0.235*; with only two estimates, breadth is thin and dispersion risk higher [Values retrieved from S&P Global].
  • Context vs prior actuals: Q2 2025 revenue $0.991B* and EPS $0.24*; consensus implies flat-to-slightly lower revenue and EPS, suggesting expectations for continued margin resilience offsetting soft top-line [Values retrieved from S&P Global].
  • Net Income Normalized (Q2 2026) consensus ~$83.1M* vs Q2 2025 actual Net Income ~$81.6M* [Values retrieved from S&P Global].
  • Target Price consensus (FY 2026) ~$6.55; recommendation text unavailable in S&P feed snapshot [Values retrieved from S&P Global].

Key Takeaways for Investors

  • Await Q2 2026 8-K 2.02 and call transcript; thin estimates coverage increases surprise risk on print .
  • Watch gross margin: prior execution (41%+ gross margin in Q2 2025) was the core lever for beats; any deviation will be stock-moving .
  • Monitor tariff flow-through: management previously flagged impact beginning Q4 via cost accounting; if cadence shifted, it affects back-half margins .
  • SG&A discipline and productivity: continued cost savings are required to deliver consensus EPS despite potential revenue softness .
  • Merger timing/progress with Gildan is a structural catalyst; closing clarity, synergy targets, and leverage profile will influence valuation .
  • Near-term trade: bias to volatility on print due to low estimate count; setup favors margin-watch and tariff commentary; consider event-driven positioning contingent on availability of Q2 2026 materials [Values retrieved from S&P Global].
  • Medium-term: margin structure improvements and brand/category expansion underpin thesis if sustained through integration/transaction timelines; reassess upon official Q2 2026 disclosures.

Notes on data availability:

  • Q2 2026 primary documents (8-K 2.02 press release and earnings call transcript) were not found via SEC or IR as of this writing .
  • All asterisked values are from S&P Global consensus or fundamentals. Values retrieved from S&P Global.