Hanesbrands2nd Qtr 2008 Earnings - Misses By A Little

Hanesbrands Inc. Reports Second-Quarter 2008 Results
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--July 29, 2008--Hanesbrands Inc. (NYSE: HBI), a leading marketer of innerwear, outerwear and hosiery apparel, today reported results for the 2008 second quarter.

Noteworthy Financial Highlights
Selected highlights for the quarter and six months ended June 28, 2008, compared with the year-ago periods ended June 30, 2007, include: -- Earnings per diluted share in the quarter increased by 131 percent to $0.60, up from $0.26 a year ago. Diluted EPS for the six-month period increased by 149 percent to $0.97.

Non-GAAP diluted EPS, which excludes actions, increased by 20 percent for the quarter and 32 percent for the first six months. Non-GAAP net income, which excludes actions, increased by $10 million in the quarter, primarily as a result of lower interest expense, lower income tax expense as a result of global supply chain initiatives, and cost reductions that were offset by lower sales.

-- Operating profit in the quarter increased by 28 percent to $113.1 million and increased by 28 percent to $200.9 million in the six-month period.

The non-GAAP operating profit margin, which excludes actions, was 11.2 percent in the quarter, the same as last year's quarter. For the six-month period, the non-GAAP operating profit margin increased to 10.4 percent versus 10.0 percent a year ago. The benefits of cost-reduction efforts, including operating fewer, larger facilities in lower-cost countries, distribution center
streamlining and organization consolidation, contributed to an improved gross profit margin and flat selling, general and administrative expenses.

-- Total net sales in the quarter decreased by $50 million to $1.07 billion. Sales primarily decreased in the company's innerwear segment, with particularly soft sales for intimate apparel product categories. Later back-to-school shipments compared with a year ago also contributed to the innerwear decline.

International segment sales increased by 20 percent in the quarter as a result of favorable foreign currency exchange rates and growth. The increase in international sales more than offset sales declines in the outerwear segment, the hosiery segment and the other segment.