HanesBrands, the parent of Champion and Gear For Sports, said it expects its first-quarter earnings to come in at the higher end of guidance.
The company also announced that Chief Financial Officer Richard D. Moss has decided to retire at the end of 2017. The company has initiated an internal and external search for CFO candidates to succeed Moss.
Hanes expects to report first-quarter net sales of approximately $1.38 billion and strong net cash from operations. The company expects a modest use of cash for the quarter of $25 million to $50 million.
For earnings from continuing operations, the company expects GAAP earnings per diluted share of 19 to 20 cents a share and adjusted EPS excluding actions of 28 cents to 29 cents. The EPS expectations compare with first-quarter GAAP EPS guidance of 21 to 24 cents and adjusted EPS guidance of 27 cents to 29 cents.
Hanes has reaffirmed its full-year 2017 financial guidance issued in February, including expectations for net sales, operating profit, EPS, cash from operations, and acquisition-related pretax charges.
“We’re off to a strong start in 2017, and we are diligently focused on daily execution and performance,” said Hanes Chief Executive Officer Gerald W. Evans Jr. “This year is an important transition as we set the foundation of another decade of success.”
Moss, 59, who has held executive positions with Hanes for 11 years, will continue to serve as CFO while the company conducts an internal and external search for his successor. Moss’ finance responsibilities include overseeing the finance-related execution of the company’s long-term strategies and improvement initiatives.
“Rick has been an invaluable leader in our organization,” said Evans, who was promoted to CEO in October 2016. “I know Rick has been looking forward to retirement, and I am grateful that he committed to staying on through my transition as CEO. We expect a very smooth succession process for the CFO role.”
Moss helped Hanes navigate from a spinoff company with significant debt to one of the world’s largest basic apparel companies with a strong balance sheet focused on creating shareholder value through brand building, margin growth, international expansion, and disciplined capital deployment.
“This is an opportune time for me and the company to plan my retirement,” Moss said. “As we proceed with the succession process, I will remain focused on supporting our Sell More, Spend Less and Generate Cash strategies and goals for the year. Hanes is a very successful company that is well-positioned to continue creating strong shareholder value for many years.”
Moss joined the company in January 2006 as treasurer. He was promoted to CFO in October 2011, overseeing the company’s global finance, investor relations and corporate development functions.
Hanes has commissioned executive search firm Heidrick & Struggles to assist in the CFO succession.
First-Quarter Investor Conference Call
At the close of regular trading May 2, 2017, on the New York Stock Exchange, Hanes will issue a news release disclosing financial results for the quarter ended April 1, 2017.
The company’s brands include Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei and Gear for Sports.
Photo courtesy Champion
