Hanesbrands Lowers Sales Guidance for 2023, Expects Loss

Hanesbrands, the well-known underwear company, has revised its sales guidance for 2023 and now anticipates a loss for the year. They attribute this adjustment to what they describe as a subdued consumer demand environment.

Revised Sales Figures

Previously, Hanesbrands had projected sales ranging between $5.8 billion and $5.9 billion for the year 2023. However, they now expect sales of approximately $5.7 billion, which includes a $65 million charge due to unfavorable foreign exchange rates. This new forecast signifies a 9% decrease compared to the previous year.

Per-Share Loss

In terms of earnings per share, Hanesbrands now predicts a loss of 22 cents. Originally, they had anticipated breaking even or earning 14 cents per share.

Adjusted Earnings

Adjusted earnings, which remove one-time items from calculations, are now expected to be around 12 cents per share. This is down from the previous outlook of 16 cents to 30 cents per share.

Factors Affecting Guidance

Hanesbrands attributed the revised guidance to ongoing macroeconomic uncertainty and an anticipated fluctuation in its quarterly tax rate. Notably, the company experienced a loss in the third quarter due to declining sales.