Hanesbrands 3rd Quarter 2008 Earnings

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Oct. 29, 2008--Hanesbrands Inc. (NYSE: HBI), a leading marketer of innerwear, outerwear and hosiery apparel, today reported results for the 2008 third quarter.
Total net sales in the quarter were unchanged at $1.15 billion. Earnings per diluted share in the quarter were $0.17. Excluding actions and the previously announced impact of a retailer bankruptcy, non-GAAP earnings per diluted share increased by 17 percent to $0.56 as a result of reduced long-term debt, lower base interest rates, and lower income tax expense as a result of the company's global supply chain strategy.
"We continued our strategic execution in the third quarter and delivered comparable sales and solid earnings per share in a difficult environment," Hanesbrands Chief Executive Officer Richard A. Noll said. "We remain optimistic about our earnings potential for the fourth quarter due to favorability of expenses that may more than offset the challenges of higher commodity costs and an uncertain sales environment."
Noteworthy Financial Highlights
Selected highlights for the quarter and nine months ended Sept. 27, 2008, compared with the year-ago periods ended Sept. 29, 2007, include:
Total net sales in the quarter held steady at $1.15 billion, increasing slightly. Sales increases in the innerwear and international segments were offset primarily by declines in the sheer hosiery segment and the other segment. The 2 percent sales increase in the innerwear segment was driven by strong Hanes male underwear sales. In the outerwear segment, Champion activewear sales increased by double-digits.
Total net sales for the nine-month period were down 3.1 percent to $3.21 billion.
GAAP earnings per diluted share in the quarter decreased by $0.23 to $0.17. This includes a $0.35 reduction per diluted share for restructuring and related charges and $0.04 per diluted share for the bankruptcy of Mervyn's, a regional retailer, which announced its liquidation plans after the end of the third quarter.
Excluding actions and the previously announced Mervyn's bankruptcy impact, non-GAAP diluted EPS increased by $0.08 to $0.56. Excluding actions only, non-GAAP diluted EPS increased by $0.04 to $0.52.
For the nine-month period, non-GAAP diluted EPS, excluding actions, increased by 23 percent to $1.59.