Clothing company Hanesbrands (NYSE:HBI) will be reporting results tomorrow before the bell. Here's what to look for.
Hanesbrands missed analysts' revenue expectations by 1.6% last quarter, reporting revenues of $1.16 billion, down 16.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and optimistic earnings guidance for the full year.
Is Hanesbrands a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Hanesbrands's revenue to decline 6.1% year on year to $1.35 billion, a further deceleration from the 4.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hanesbrands has missed Wall Street's revenue estimates six times over the last two years.
Looking at Hanesbrands's peers in the apparel, accessories and luxury goods segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kontoor Brands's revenues decreased 1.5% year on year, beating analysts' expectations by 2.3%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Kontoor Brands traded down 1.6% following the results while Levi's was also down 15.7%.
Read our full analysis of Kontoor Brands's results here and Levi's results here.
Investors in the apparel, accessories and luxury goods segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Hanesbrands is up 14.6% during the same time and is heading into earnings with an average analyst price target of $5.7 (compared to the current share price of $5.34).
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