What Hanesbrands (HBI)
has done over the last few years is pretty impressive. Not only has the
company consolidated and streamlined its manufacturing system and more
than offset volatile cotton prices, but it has also managed to introduce
new value-added products that carry significant premiums. Wall Street
has absolutely noticed, taking the shares up over 160% in the trailing
two years and nearly 90% in the last 12 months.
Now the company is looking to replicate those improvements across the 2013 acquisition of Maidenform.
There are certainly many opportunities for Hanesbrands to cut redundant
costs, streamline Maidenform's operations, and drive better utilization
while augmenting their brand image. I believe that Hanesbrands will
succeed in integrating Maidenform, but expectations have risen with the
stock price. There is a significant opportunity to expand the activewear
business and the company's share in overseas markets, and success there
is going to be important to this stock continuing to outperform.
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Hanesbrands Looking To Double Down On Self-Improvements
Showing posts with label Hanesbrands. Show all posts
Showing posts with label Hanesbrands. Show all posts
Thursday, March 6, 2014
Monday, September 17, 2012
Investopedia: Can Hanesbrands Leverage Successful Brands Into Better Financials?
There's not much debate about the quality of the brands that Hanesbrands (NYSE:HBI)
owns. Names like Hanes, Champion and Playtex resonate with consumers,
and when it comes to innerwear, a large percentage of shoppers stick
with a single brand for decades at a time. This company has not always
managed to convert that brand value into shareholder value, though the
stock has rebounded sharply from the lows of 2009. Now the question is
whether management can not only maintain the value of these brands, but
also wring more expenses out of the operations and deleverage the
business.
Please read more here:
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Please read more here:
http://www.investopedia.com/
Tuesday, February 28, 2012
Investopedia: HanesBrands May Soon Start Stretching Out Its Free Cash Flow
Innerware manufacturer HanesBrands (NYSE:HBI) has to contend with fierce competition, powerful retailers, and a balance sheet that is far less than ideal. Although apparel manufacturing is going to remain a tough business for the foreseeable future and HanesBrands doesn't look cheap by conventional metrics, investors who look no further than the P/E or EV/EBITDA ratios may miss an interesting free cash flow expansion story in its early stages.
A Tough Quarter
For a variety of reasons, HanesBrands delivered another poor quarter. Sales were slightly negative, as the company had to deal with retailers clearing out cold weather inventories, aggressive competition in graphic tees and some turbulence with Wal-Mart (NYSE:WMT). At the same time, higher cotton prices thumped margins (gross margin down more than a point) and operating income fell about 8%.
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A Tough Quarter
For a variety of reasons, HanesBrands delivered another poor quarter. Sales were slightly negative, as the company had to deal with retailers clearing out cold weather inventories, aggressive competition in graphic tees and some turbulence with Wal-Mart (NYSE:WMT). At the same time, higher cotton prices thumped margins (gross margin down more than a point) and operating income fell about 8%.
Please click here for more:
http://stocks.investopedia.
Monday, November 14, 2011
Investopedia: Maidenform Pulled Out Of Shape
Players in the intimate apparel space, like Hanesbrands (NYSE: HBI) and Warnaco (NYSE: WRC), warned earlier this month that the market was not so strong, and data from retailers like J.C. Penney (NYSE: JCP) and Kohl's (NYSE: KSS) was likewise not encouraging. Even with that backdrop, though, Maidenform Brands (NYSE: MFB) surprised the Street with a very disappointing third quarter and some self-inflicted wounds only made matters worse.
A Poor Q3
There's no value in sugar-coating what was a lousy report from Maidenform. Sales rose less than 2%, while sell side analysts had been expecting 11% growth, versus last year's quarter. Wholesale sales, the bulk of MFB's revenue base, rose just barely more than 1%, but the results were curiously mixed. Sales to mass merchants like Wal-mart (NYSE: WMT) and Target (NYSE: TGT) jumped 15%, but sales to department stores were down almost 1%. (To know more about buy side and sell side analysts, read: Buy Side Vs. Sell Side Analysts.)
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A Poor Q3
There's no value in sugar-coating what was a lousy report from Maidenform. Sales rose less than 2%, while sell side analysts had been expecting 11% growth, versus last year's quarter. Wholesale sales, the bulk of MFB's revenue base, rose just barely more than 1%, but the results were curiously mixed. Sales to mass merchants like Wal-mart (NYSE: WMT) and Target (NYSE: TGT) jumped 15%, but sales to department stores were down almost 1%. (To know more about buy side and sell side analysts, read: Buy Side Vs. Sell Side Analysts.)
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http://stocks.investopedia.
Tuesday, September 27, 2011
Investopedia: Nike Asks, "What Slowdown?"
Few companies get as much credit for its brand value as Nike (NYSE:NKE), but brand value alone does not seem to explain why the company continues to do so well in an environment where consumers are looking left and right for bargains. The fact is, while Nike may not offer the cheapest options in its categories, the price gap is not as large as it used to be and the company has done a very good job of delivering value for money. (If you are interested in value investing, read The Value Investor's Handbook.)
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
Tuesday, June 28, 2011
Investopedia: Nike Still Winning
It seems a little strange that footwear and athletic apparel maker Nike (NYSE:NKE) never quite gets the same respect or admiration that Coca-Cola (NYSE:KO), Microsoft (Nasdaq:MSFT) or Wal-Mart (NYSE:WMT) get from investors and business historians. After all, Nike started at almost the same time as Wal-Mart and is every bit as global (if not more) in its reach and influence.
Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
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Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
To read the full piece, please click below:
http://stocks.investopedia.
Thursday, March 31, 2011
Investopedia: High Cotton Or Not, Phillips-Van Heusen Worth A Look
There are not too many truly cheap stocks out there, nor a surplus of stories that are completely spot-free. In times like these, investors have to move on to stories where certain concerns are inflated or where undervaluation lies beyond the quick valuation ratios and in the cash flow capabilities of the company. Clothing wholesaler and retailer Phillips-Van Heusen (NYSE:PVH) is one such candidate - a quality company that is not necessarily cheap on first blush, but looks like a quality undervalued opportunity.
A Solid End to the Year
PVH's earnings are not necessarily easy to digest - the company made a major acquisition (Tommy Hilfiger) and that makes the year-on-year comparisons a little more difficult. To the company's credit, though, they give investors an unusually-extensive amount of financial detail and it looks like the quarter was solid with or without the acquisition.
As reported, revenue jumped almost 128% to just under $1.4 billion, and beat the average analyst guess. The inclusion of over $700 million in Tommy Hilfiger revenue clearly made a major difference, though the core organic growth rate looks like it came in at more than 12%. In particular, the Calvin Klein business rose over 18%, with licensing revenue (from the likes of Warnaco (Nasdaq:WRNC) and G-III Apparel (Nasdaq:GIII)) up 11%.
Profitability was more of a mixed story. Gross margin did improve almost three points, but that was still less than most analysts expected. Likewise, adjusted operating margin of over 9% was not bad but not great relative to expectations. All in all, then, PVH's outperformance this quarter was fueled by higher sales and lower taxes, offset by some margin challenges.
To read the full piece, please go to:
http://stocks.investopedia.
A Solid End to the Year
PVH's earnings are not necessarily easy to digest - the company made a major acquisition (Tommy Hilfiger) and that makes the year-on-year comparisons a little more difficult. To the company's credit, though, they give investors an unusually-extensive amount of financial detail and it looks like the quarter was solid with or without the acquisition.
As reported, revenue jumped almost 128% to just under $1.4 billion, and beat the average analyst guess. The inclusion of over $700 million in Tommy Hilfiger revenue clearly made a major difference, though the core organic growth rate looks like it came in at more than 12%. In particular, the Calvin Klein business rose over 18%, with licensing revenue (from the likes of Warnaco (Nasdaq:WRNC) and G-III Apparel (Nasdaq:GIII)) up 11%.
Profitability was more of a mixed story. Gross margin did improve almost three points, but that was still less than most analysts expected. Likewise, adjusted operating margin of over 9% was not bad but not great relative to expectations. All in all, then, PVH's outperformance this quarter was fueled by higher sales and lower taxes, offset by some margin challenges.
To read the full piece, please go to:
http://stocks.investopedia.
Wednesday, March 23, 2011
Investopedia: Higher Costs Are Climbing Up The Value Chain
How much should investors worry about some of the details of Nike's (NYSE:NKE) guidance? More to the point, if this champion of brand value is seeing costs bite into its margin, that cannot be good news for branded consumer product companies in general. After all, if the lions are having to tighten their belts a bit, it stands to reason that those lower on the food chain might be left starving.
Brand Versus Value
As long as there have been premium brands, there have been companies willing to undercut those prices with products that may sacrifice a little quality (or sometimes only the cachet) but still offer good value. However, because these white label/private label companies typically have lower margins, it is not so surprising that they are very sensitive to input costs.
In other words, it is largely a given that companies like TreeHouse Foods (NYSE:THS) and Cott (NYSE:COT) are going to see some challenges to their gross margins. These companies produce products that do not carry the same labels or brand loyalty of competing products from Unilever (NYSE:UL), Kraft (NYSE:KFT) and Coca-Cola (NYSE:KO). That means that they cannot charge as much for their products and they can really only raise prices if the market leaders do so first. If they close the gap in price between their products and the brand names too much, they lose their business.
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Monday, February 28, 2011
Investopedia: Can Chico's Be Chic Again?
Women's retailer Chico's (NYSE:CHS) was a great growth stock for almost a decade, profiting off its relatively fashionable offerings for working women and ability to differentiate itself from the likes of Gap (NYSE:GPS), Limited Brands (NYSE:LTD) as well as mall anchors like JCPenny (NYSE:JCP) and Dillards (NYSE:DDS). But then Chico's experienced what almost all retailers experience - merchandising missteps, overexpansion, questionable acquisitions and a customer base that just wants to shop somewhere else for a change.
The good news for retail investors is that there are certainly second acts in retailing (as well as third, and fourth). The question, though, is whether Chico's has whipped itself into shape in time to take advantage of an improving market. (For related reading see 5 Retail Stocks For 2011.)
An Iffy End to the Year
Chico's did not report especially exciting numbers for the fourth quarter, but the market was expecting worse so it all netted out to a "positive quarter", especially as the company gave encouraging sales growth guidance for fiscal 2011.
Please follow this link for the full piece:
http://stocks.investopedia.
The good news for retail investors is that there are certainly second acts in retailing (as well as third, and fourth). The question, though, is whether Chico's has whipped itself into shape in time to take advantage of an improving market. (For related reading see 5 Retail Stocks For 2011.)
An Iffy End to the Year
Chico's did not report especially exciting numbers for the fourth quarter, but the market was expecting worse so it all netted out to a "positive quarter", especially as the company gave encouraging sales growth guidance for fiscal 2011.
Please follow this link for the full piece:
http://stocks.investopedia.
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