Hanesbrands (HBI) Reports Q1: Everything You Need To Know Ahead Of Earnings

Clothing company Hanesbrands (NYSE:HBI) will be reporting results tomorrow before market open. Here's what to look for.

Hanesbrands missed analysts' revenue expectations by 5% last quarter, reporting revenues of $1.30 billion, down 12% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

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 15.4% year on year to $1.17 billion, a further deceleration from the 11.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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 five times over the last two years.

Looking at Hanesbrands's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kontoor Brands's revenues decreased 5.4% year on year, beating analysts' expectations by 3.8%, and Levi's reported a revenue decline of 7.8%, in line with consensus estimates. Kontoor Brands traded up 5.7% following the results while Levi's was also up 12.3%.

Read our full analysis of Kontoor Brands's results here and Levi's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the apparel, accessories and luxury goods stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Hanesbrands is down 13.8% 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 $4.45).

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