This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hanesbrands' CEO Discusses Q2 2012 Results - Earnings Transcript

The result of these actions is our newly named branded printwear, which should be a smaller, but more profitable and less volatile, where we remain committed to growing both the Hanes and Champion brands. We believe this is the right strategy for the category going forward and in hindsight only regret not taking these actions sooner.

Our other major derisking strategy is strengthening our balance sheet by focusing on cash generation and debt reduction. Through the first half of 2012, inventory is falling, free cash flow is strong, we continue to pay down debt, and we remain committed to further reducing bond debt to $1 billion by the end of 2013. These actions by themselves should not only significantly reduce volatility, but also power EPS growth, especially in 2014.

Turning to our core business, we have successfully managed through a significant cotton bubble. In 2011, cotton inflation impacted us by about $200 million and 2012 has seen a similar headwind through the first half. With that now behind us, we are pleased to see our margins returning to historical levels.

The best evidence of how we have navigated through the cotton bubble is innerwear. We saw at least mid-single-digit sales growth with our top three customers and our substantial profit turnaround as first-half operating margins were only 70 basis points below last year’s first half, when cotton was over 50% lower.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,751.02 +67.44 0.38%
S&P 500 2,082.45 +13.69 0.66%
NASDAQ 4,999.55 +7.61 0.15%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs