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WINSTON-SALEM, N.C.--(BUSINESS WIRE)-- HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for the third-quarter 2024.

“We delivered another strong quarter with operating profit, earnings per share, and cash flow results that exceeded our expectations. In addition, we have further reduced our leverage, expect a return to revenue growth in the fourth quarter, and raised our full-year outlook for profit and cash flow,” said Steve Bratspies, CEO. “Our strategic actions to create a more focused, simplified business are working. We are driving a step-function change in our cost structure, increasing operational efficiencies, reducing inventory, and freeing up capital to invest in growth. We expect the benefits of these actions to ramp over the next several quarters, giving us visibility and confidence to deliver continued margin improvement, cash generation, and debt reduction through 2025.”

Third-Quarter 2024 Results

Net Sales from continuing operations were $937 million.

• Net sales decreased 2.5% compared to the prior year, with approximately 180 basis points due to the divestiture in the prior year of the U.S. Sheer Hosiery business and approximately 75 basis points due to the unfavorable impact from foreign exchange rates.
• On an organic constant currency basis, net sales were consistent with prior year (Table 2-B).

Gross Profit and Gross Margin increased year-over-year driven by lower input costs as the Company continues to anniversary the impact from peak inflation, the benefits from its cost savings initiatives, and the benefits from its assortment management initiative.

• In the quarter, the Company continued its consolidation and other optimization actions in its supply chain to lower fixed cost, increase efficiencies, and further improve customer service and in-stocks with lower levels of inventory. The Company expects these actions to drive continued benefits in the fourth quarter 2024 and through 2025.
• Gross Profit and Adjusted Gross Profit were $390 million and $392 million, respectively, an increase over prior year of 12% and 11%, respectively.
• Gross Margin and Adjusted Gross Margin increased approximately 530 and 525 basis points, respectively, to 41.7% and 41.8%, respectively.
• Adjusted Gross Profit and Adjusted Gross Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).

Selling, General and Administrative (SG&A) Expenses , as a percentage of net sales, increased over prior year driven primarily by a 150 basis point increase in brand investments, which was partially offset by benefits from cost savings initiatives and disciplined expense management.

• In the quarter, the Company accelerated strategic actions to improve its processes. These actions are driving a step-function change in the Company’s cost structure, including reducing corporate headcount and overhead, to lower fixed cost and fund growth-related investments in its brands. The Company expects the savings from these actions to continue to build over the next several quarters.
• SG&A Expenses were $287 million, or 30.7% of net sales, which represents an increase over prior year of 7% and 270 basis points, respectively.
• Adjusted SG&A Expenses were $269 million, or 28.7% of net sales, which represents an increase of nearly 1% and 90 basis points, respectively.
• Adjusted SG&A Expenses exclude certain costs related to restructuring and other action-related charges (Table 6-A).

Operating Profit and Operating Margin increased over prior year driven by gross margin improvement, which supported a 150 basis point increase in brand investments.

• Operating Profit increased 27% to $103 million and Operating Margin increased 255 basis points to 11.0% as compared to prior year.
• Adjusted Operating Profit increased 46% to $122 million and Adjusted Operating Margin increased 435 basis points to 13.0% as compared to prior year.
• Adjusted Operating Profit and Adjusted Operating Margin exclude certain costs related to restructuring and other action-related charges (Table 6-A).

Interest Expense and Other Expenses of $58 million decreased approximately $8 million as compared to prior year. The decrease was driven by lower interest expense as a result of lower debt balances.

Tax Expense was $13 million as compared to $21 million in the prior year period.

• Effective Tax Rate was 27.9% as compared to 139.1% in third-quarter 2023.
• Adjusted Tax Rate was 19.5% as compared to 141.8% last year.
• The Company's effective tax rate for 2024 and 2023 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets.

Income from continuing operations totaled $32 million, or $0.09 per diluted share in third-quarter 2024. This compares to a loss from continuing operations of $(6) million, or $(0.02) per diluted share, in third-quarter 2023. Adjusted Income from continuing operations totaled $52 million, or $0.15 per diluted share. This compares to an adjusted loss from continuing operations of $(8) million, or $(0.02) per diluted share, in third-quarter 2023.

See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include restructuring and other action-related charges.

Third-Quarter 2024 Business Segment Summary

• U.S. net sales decreased 1% as compared to prior year. Despite the anticipated total market decline in the quarter, the Company’s strategy of consumer-centricity is working. The Company’s point-of-sale trends have outperformed the total market year-to-date as increased brand investments and product innovation in its Hanes , Maidenform and Bali brands are driving permanent retail space and market share gains, particularly with younger consumers.
  
  Operating margin of 22.1% increased approximately 665 basis points over prior year. The increase was driven by lower input costs, favorable product mix, and benefits from cost savings initiatives, which helped fund a 55% increase in brand investments to drive consumer demand behind new product innovation in both Men’s and Women’s.

• International net sales increased 1% on a reported basis, which included a $7 million headwind from unfavorable foreign exchange rates. International sales increased 4% on a constant currency basis compared to prior year as sales grew in the Americas and Asia and were consistent with prior year in Australia as the Company begins to anniversary the worst of Australia’s macroeconomic-driven headwinds.
  
  Operating margin of 14.2% increased approximately 465 basis points compared to prior year driven primarily by lower input costs and benefits from cost savings initiatives.

Cash Flow, Balance Sheet and Liquidity

• Total liquidity position at the end of third-quarter 2024 was more than $1.4 billion, consisting of $317 million of cash and equivalents and approximately $1.1 billion of available capacity under the Company’s credit facilities.
• Based on the calculation as defined in the Company’s senior secured credit facility, the Leverage Ratio at the end of third-quarter 2024 was 4.3 times on a net debt-to-adjusted EBITDA basis, which was below its third-quarter 2024 covenant of 6.63 times and below prior year’s 5.5 times (See Table 6-B). Subsequent to the end of third-quarter 2024, the Company paid down an additional approximately $870 million of debt in October 2024.
• Inventory at the end of third-quarter 2024 of $928 million decreased 13%, or $138 million, year-over-year. The year-over-year decrease was driven predominantly by the benefits of its inventory management capabilities, including SKU discipline and lifecycle management, lower input costs as the Company continued to anniversary the impact from peak inflation, and improving sales trends.
• Cash Flow from Operations was $197 million year-to-date at the end of the third-quarter 2024 as compared to $287 million last year. Free Cash Flow year-to-date was $165 million at the end of the third-quarter 2024 as compared to $252 million last year.

Closes Sale of Global Champion Business

Subsequent to the end of the third-quarter 2024 and as previously announced on September 30, 2024, the Company completed the sale of the intellectual property and certain operating assets of the global Champion business to Authentic Brands Group.

Fourth-Quarter and Full-Year 2024 Financial Outlook

Guidance metrics are based on continuing operations.

The Company is providing guidance on tax expense due to the expected fluctuation of its quarterly tax rate, stemming from the deferred tax reserve matter previously disclosed in fourth-quarter 2022. Importantly, the reserve does not impact cash taxes. Some portion of the reserve may reverse in future periods.

The Company closed the sale of its U.S. Sheer Hosiery business on September 29, 2023. For the full year 2023, its U.S. Sheer Hosiery business generated $50 million of net sales and an operating loss of $(2) million.

For fiscal year 2024, which ends on December 28, 2024, the Company currently expects:

• Net sales from continuing operations of approximately $3.61 billion, which includes projected headwinds of approximately $50 million from last year’s U.S. Sheer Hosiery divestiture and approximately $42 million from changes in foreign currency exchange rates. This represents an approximate 4% decrease as compared to prior year on a reported basis and an approximate 2% decrease on an organic constant currency basis.
• GAAP operating profit from continuing operations of approximately $174 million.
• Adjusted operating profit from continuing operations of approximately $417 million, which includes a projected headwind of approximately $8 million from changes in foreign currency exchange rates.
• Pretax charges for restructuring and other action-related charges of approximately $243 million.
• GAAP and Adjusted Interest expense of approximately $195 million, which reflects the pay down of debt from the use of net proceeds from the Champion sale and internal cash generation.
• GAAP Other expenses of approximately $53 million, which includes approximately $10 million of accelerated amortization of debt issuance costs. Adjusted Other expenses of approximately $43 million.
• GAAP and Adjusted Tax expense of approximately $40 million, which includes a net tax benefit primarily related to a release of certain tax reserves.
• GAAP loss per share from continuing operations of approximately $(0.32).
• Adjusted earnings per share from continuing operations of approximately $0.39.
• Cash flow from operations of approximately $250 million.
• Capital investments of approximately $50 million, consisting of approximately $40 million of capital expenditures and approximately $10 million of cloud computing arrangements. Per GAAP, capital expenditures are reflected in cash from investing activities and certain cloud computing arrangements are reflected in Other Assets within cash flow from operating activities. The approximate $10 million of cloud computing arrangements is factored into the full year cash flow from operations guidance of approximately $250 million.
• Free cash flow of approximately $210 million.
• Fully diluted shares outstanding of approximately 355 million.

For fourth-quarter 2024, which ends on December 28, 2024, the Company currently expects:

• Net sales from continuing operations of approximately $900 million, which includes projected headwind of approximately $4 million from changes in foreign currency exchange rates. This represents an approximate 2% increase as compared to prior year on a reported basis and an approximate 3% increase on an organic constant currency basis.
• GAAP operating profit from continuing operations of approximately $95 million.
• Adjusted operating profit from continuing operations of approximately $115 million, which includes a projected headwind of approximately $1 million from changes in foreign currency exchange rates.
• Pretax charges for restructuring and other action-related charges of approximately $20 million.
• GAAP and Adjusted Interest expense of approximately $45 million, which reflects the pay down of debt from the use of net proceeds from the Champion sale and internal cash generation.
• GAAP Other expenses of approximately $24 million, which includes approximately $10 million of accelerated amortization of debt issuance costs. Adjusted Other expenses of approximately $14 million.
• GAAP and Adjusted Tax expense of approximately $5 million, which includes a net tax benefit primarily related to a release of certain tax reserves.
• GAAP earnings per share from continuing operations of approximately $0.06.
• Adjusted earnings per share from continuing operations of approximately $0.14.
• Fully diluted shares outstanding of approximately 357 million.

HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.

Note on Adjusted Measures and Reconciliation to GAAP Measures

To supplement financial results prepared in accordance with generally accepted accounting principles, the Company provides quarterly and full-year results concerning certain non‐GAAP financial measures, including adjusted diluted earnings (loss) per share from continuing operations, adjusted income (loss) from continuing operations, adjusted income tax expense, adjusted income (loss) from continuing operations before income taxes, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA, adjusted EBITDA, adjusted effective tax rate, adjusted interest expense and adjusted other expenses, net debt, leverage ratio and free cash flow.

Adjusted EPS is defined as diluted earnings (loss) per share from continuing operations excluding actions and the tax effect on actions. Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations excluding actions and the tax effect on actions. Adjusted tax expense is defined as income tax expense excluding actions. Adjusted income (loss) from continuing operations before income taxes is defined as income (loss) from continuing operations before income tax excluding actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted SG&A is defined as selling, general and administrative expenses excluding actions. Adjusted gross profit is defined as gross profit excluding actions. Adjusted interest expense is defined as interest expense excluding actions. Adjusted other expenses is defined as other expenses excluding actions and adjusted tax rate is defined as adjusted tax expense divided by adjusted income (loss) from continuing operations before income tax.

Charges for actions taken in 2024 and 2023, as applicable, include the supply chain restructuring and consolidation, corporate asset impairment, headcount actions and related severance charges, professional services, technology charges, gain/loss on sale of business and classification of assets held for sale, loss on extinguishment of debt, gain on final settlement of cross currency swap contracts and the tax effects thereof.

While these costs are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.

HanesBrands has chosen to present these non‐GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of our supply chain restructuring and consolidation and other actions that are deemed to be material stand-alone initiatives apart from the Company’s core operations. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the Company’s ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken.

The Company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as net income (loss) before the impacts of discontinued operations, interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding (x) restructuring charges related to our supply chain restructuring and consolidation, and other action-related charges described in more detail in Table 6-A and (y) certain other losses, charges and expenses as defined in the Consolidated Net Total Leverage Ratio under its Fifth Amended and Restated Credit Agreement, dated November 19, 2021, as amended (the “Credit Agreement”) described in more detail in Table 6-B. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.

Net debt is defined as the total of current debt, long-term debt, and borrowings under the accounts receivable securitization facility (excluding long-term debt issuance costs and debt discount and borrowings of unrestricted subsidiaries under the accounts receivable securitization facility) less (x) other debt and cash adjustments and (y) cash and cash equivalents. Leverage ratio is the ratio of net debt to adjusted EBITDA as it is defined in our Credit Agreement.

The Company defines free cash flow as net cash from operating activities less capital expenditures. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. The Company defines organic net sales as net sales excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date.

HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the Company’s reported operating results, HanesBrands also presents constant-currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The Company uses constant currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation.

To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

HanesBrands believes constant currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the Company’s businesses. The Company defines organic constant currency sales as net sales excluding those derived from businesses acquired or divested within the previous 12 months of the reporting date and also excluding the impact of translating foreign currencies into U.S. dollars as discussed above.

Non‐GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains certain information that may constitute forward-looking statements, as defined under U.S. federal securities laws. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “could,” “will,” “expect,” “outlook,” “potential,” “project,” “estimate,” “future,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements with respect to our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those implied or expressed by such statements. These risks and uncertainties include, but are not limited to, our ability to realize the expected benefits from the sale of the global Champion business, which was completed subsequent to our third quarter on September 30, 2024; our ability to successfully operate the Champion business in certain sectors and geographies through a transition period ending on January 31, 2025, and to execute, and realize the expected benefits, successfully, or at all, from the sale of certain remaining assets of the global Champion business at the end of this transition period; our ability to successfully implement our strategic plans, including our supply chain restructuring and consolidation and other cost savings initiatives; trends associated with our business; the rapidly changing retail environment and the level of consumer demand; the effects of any geopolitical conflicts (including the ongoing Russia-Ukraine conflict and Middle East conflicts) or public health emergencies or severe global health crises, including effects on consumer spending, global supply chains, critical supply routes and the financial markets; our ability to deleverage on the anticipated time frame or at all, which could negatively impact our ability to satisfy the financial covenants in our Credit Agreement or other contractual arrangements; any inadequacy, interruption, integration failure or security failure with respect to our information technology; future intangible assets or goodwill impairment due to changes in our business, market conditions, or other factors, including the sale of the global Champion business, significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations; our ability to effectively manage our complex international tax structure; our future financial performance; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and HanesBrands undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.

About HanesBrands

HanesBrands (NYSE: HBI) is a global leader in manufacturing basics and Innerwear brands that are synonymous with comfort, quality, and value, and have been trusted by consumers around the world for generations. Among the company’s iconic brands are Hanes , the leading basic apparel brand in the U.S.; Bonds , an Australian staple since 1915 that is setting new standards for design and innovation; Maidenform , America’s number one shapewear brand; and Bali , America’s number one national bra brand in the U.S. Hanesbrands owns the majority of its worldwide manufacturing facilities and has built a strong reputation for workplace quality and ethical business practices.

TABLE 1
HANESBRANDS INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited)
	Quarters Ended											Nine Months Ended
	September 28, 2024				September 30, 2023				% Change			September 28, 2024				September 30, 2023				% Change
Net sales	$	937,103			$	961,294			(2.5	)%		$	2,710,709			$	2,880,328			(5.9	)%
Cost of sales		546,663				611,513							1,703,881				1,891,375
Gross profit		390,440				349,781			11.6	%			1,006,828				988,953			1.8	%
As a % of net sales		41.7	%			36.4	%						37.1	%			34.3	%
Selling, general and administrative expenses		287,442				268,751			7.0	%			927,851				812,446			14.2	%
As a % of net sales		30.7	%			28.0	%						34.2	%			28.2	%
Operating profit		102,998				81,030			27.1	%			78,977				176,507			(55.3	)%
As a % of net sales		11.0	%			8.4	%						2.9	%			6.1	%
Other expenses		9,505				9,079							29,519				31,056
Interest expense, net		48,606				56,648							149,511				160,586
Income (loss) from continuing operations before income taxes		44,887				15,303							(100,053	)			(15,135	)
Income tax expense		12,508				21,280							34,723				50,286
Income (loss) from continuing operations		32,379				(5,977	)						(134,776	)			(65,421	)
Loss from discontinued operations, net of tax		(2,428	)			(32,822	)						(172,775	)			(30,246	)
Net income (loss)	$	29,951			$	(38,799	)					$	(307,551	)		$	(95,667	)
Earnings (loss) per share - basic:
Continuing operations	$	0.09			$	(0.02	)					$	(0.38	)		$	(0.19	)
Discontinued operations		(0.01	)			(0.09	)						(0.49	)			(0.09	)
Net income (loss)	$	0.09			$	(0.11	)					$	(0.87	)		$	(0.27	)
Earnings (loss) per share - diluted:
Continuing operations	$	0.09			$	(0.02	)					$	(0.38	)		$	(0.19	)
Discontinued operations		(0.01	)			(0.09	)						(0.49	)			(0.09	)
Net income (loss)	$	0.08			$	(0.11	)					$	(0.87	)		$	(0.27	)
Weighted average shares outstanding:
Basic		352,107				350,667							351,891				350,534
Diluted		354,839				350,667							351,891				350,534

TABLE 2-A
HANESBRANDS INC. Supplemental Financial Information Impact of Foreign Currency (in thousands, except per share data) (Unaudited)
The following tables present a reconciliation of reported results on a constant currency basis for the quarter and nine months ended September 28, 2024 and a comparison to prior year:
	Quarter Ended September 28, 2024
	As Reported				Impact from Foreign Currency 1				Constant Currency				Quarter Ended September 30, 2023				% Change, As Reported			% Change, Constant Currency
As reported under GAAP:
Net sales	$	937,103			$	(7,270	)		$	944,373			$	961,294			(2.5	)%		(1.8	)%
Gross profit		390,440				(1,556	)			391,996				349,781			11.6			12.1
Operating profit		102,998				(134	)			103,132				81,030			27.1			27.3
Diluted earnings (loss) per share from continuing operations 3	$	0.09			$	0.00			$	0.09			$	(0.02	)		550.0	%		550.0	%
As adjusted: 2
Net sales	$	937,103			$	(7,270	)		$	944,373			$	961,294			(2.5	)%		(1.8	)%
Gross profit		391,557				(1,556	)			393,113				351,310			11.5			11.9
Operating profit		122,166				(134	)			122,300				83,740			45.9			46.0
Diluted earnings (loss) per share from continuing operations 3	$	0.15			$	0.00			$	0.15			$	(0.02	)		850.0	%		850.0	%

1	Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2	Results for the quarters ended September 28, 2024 and September 30, 2023 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 6-A.
3	Amounts may not be additive due to rounding.

	Nine Months Ended September 28, 2024
	As Reported				Impact from Foreign Currency 1				Constant Currency				Nine Months Ended September 30, 2023				% Change, As Reported			% Change, Constant Currency
As reported under GAAP:
Net sales	$	2,710,709			$	(37,828	)		$	2,748,537			$	2,880,328			(5.9	)%		(4.6	)%
Gross profit		1,006,828				(19,908	)			1,026,736				988,953			1.8			3.8
Operating profit		78,977				(6,820	)			85,797				176,507			(55.3	)		(51.4	)
Diluted loss per share from continuing operations 3	$	(0.38	)		$	(0.01	)		$	(0.37	)		$	(0.19	)		(100.0	)%		(94.7	)%
As adjusted: 2
Net sales	$	2,710,709			$	(37,828	)		$	2,748,537			$	2,880,328			(5.9	)%		(4.6	)%
Gross profit		1,096,769				(19,908	)			1,116,677				992,234			10.5			12.5
Operating profit		302,369				(6,820	)			309,189				198,921			52.0			55.4
Diluted earnings (loss) per share from continuing operations 3	$	0.25			$	(0.01	)		$	0.26			$	(0.11	)		327.3	%		336.4	%

1	Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2	Results for the nine months ended September 28, 2024 and September 30, 2023 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Table 6-A.
3	Amounts may not be additive due to rounding.

TABLE 2-B
HANESBRANDS INC. Supplemental Financial Information Organic Constant Currency (in thousands, except per share data) (Unaudited)
The following tables present a reconciliation of reported results on an organic constant currency basis for the quarter and nine months ended September 28, 2024 and a comparison to prior year:
	Quarter Ended September 28, 2024																Quarter Ended September 30, 2023
	As Reported				Impact from Foreign Currency 1				Less U.S. Hosiery Divestiture 2				Organic Constant Currency				As Reported				Less U.S. Hosiery Divestiture 2				Organic				% Change, As Reported			% Change, Organic Constant Currency
Net sales	$	937,103			$	(7,270	)		$	—			$	944,373			$	961,294			$	17,303			$	943,991			(2.5	)%		0.0	%

1	Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2	The Company sold its U.S. Sheer Hosiery business on September 29, 2023.

	Nine Months Ended September 28, 2024																Nine Months Ended September 30, 2023
	As Reported				Impact from Foreign Currency 1				Less U.S. Hosiery Divestiture 2				Organic Constant Currency				As Reported				Less U.S. Hosiery Divestiture 2				Organic				% Change, As Reported			% Change, Organic Constant Currency
Net sales	$	2,710,709			$	(37,828	)		$	—			$	2,748,537			$	2,880,328			$	50,358			$	2,829,970			(5.9	)%		(2.9	)%

1	Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
2	The Company sold its U.S. Sheer Hosiery business on September 29, 2023.

TABLE 3
HANESBRANDS INC. Supplemental Financial Information By Business Segment (in thousands) (Unaudited)
	Quarters Ended											Nine Months Ended
	September 28, 2024				September 30, 2023				% Change			September 28, 2024				September 30, 2023				% Change
Segment net sales:
U.S.	$	678,345			$	684,990			(1.0	)%		$	1,962,390			$	2,035,923			(3.6	)%
International		259,146				255,784			1.3				747,234				776,529			(3.8	)
Other		(388	)			20,520			(101.9	)			1,085				67,876			(98.4	)
Total net sales	$	937,103			$	961,294			(2.5	)%		$	2,710,709			$	2,880,328			(5.9	)%
Segment operating profit:
U.S.	$	149,637			$	105,579			41.7	%		$	406,114			$	297,340			36.6	%
International		36,893				24,570			50.2				87,933				68,815			27.8
Other		(1,989	)			342			(681.6	)			(1,438	)			130			(1,206.2	)
General corporate expenses/other		(62,375	)			(46,751	)		33.4				(190,240	)			(167,364	)		13.7
Total operating profit before restructuring and other action-related charges		122,166				83,740			45.9				302,369				198,921			52.0
Restructuring and other action-related charges		(19,168	)			(2,710	)		607.3				(223,392	)			(22,414	)		896.7
Total operating profit	$	102,998			$	81,030			27.1	%		$	78,977			$	176,507			(55.3	)%

	Quarters Ended									Nine Months Ended
	September 28, 2024			September 30, 2023			Basis Points Change			September 28, 2024			September 30, 2023			Basis Points Change
Segment operating margin:
U.S.	22.1	%		15.4	%		665			20.7	%		14.6	%		609
International	14.2			9.6			463			11.8			8.9			291
Other	512.6			1.7			51,096			(132.5	)		0.2			(13,273	)
General corporate expenses/other	(6.7	)		(4.9	)		(179	)		(7.0	)		(5.8	)		(121	)
Total operating margin before restructuring and other action-related charges	13.0			8.7			433			11.2			6.9			425
Restructuring and other action-related charges	(2.0	)		(0.3	)		(176	)		(8.2	)		(0.8	)		(746	)
Total operating margin	11.0	%		8.4	%		256			2.9	%		6.1	%		(321	)

TABLE 4
HANESBRANDS INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited)
	September 28, 2024				December 30, 2023				September 30, 2023
Assets
Cash and cash equivalents	$	317,301			$	185,717			$	172,787
Trade accounts receivable, net		505,614				451,052				572,744
Inventories		927,754				972,654				1,066,161
Other current assets		187,541				117,057				155,289
Current assets held for sale		401,492				549,735				628,775
Total current assets		2,339,702				2,276,215				2,595,756
Property, net		198,006				354,410				356,474
Right-of-use assets		255,799				281,898				279,417
Trademarks and other identifiable intangibles, net		954,945				959,851				928,425
Goodwill		667,468				664,805				650,263
Deferred tax assets		19,740				18,176				5,267
Other noncurrent assets		120,333				139,151				148,464
Noncurrent assets held for sale		905,605				945,808				949,222
Total assets	$	5,461,598			$	5,640,314			$	5,913,288
Liabilities
Accounts payable	$	684,838			$	580,285			$	628,765
Accrued liabilities		544,071				421,805				432,553
Lease liabilities		71,604				70,490				70,701
Accounts Receivable Securitization Facility		—				6,000				200,500
Current portion of long-term debt		59,000				59,000				59,000
Current liabilities held for sale		215,949				252,988				263,759
Total current liabilities		1,575,462				1,390,568				1,655,278
Long-term debt		3,211,248				3,235,640				3,310,256
Lease liabilities - noncurrent		231,262				239,686				234,149
Pension and postretirement benefits		89,385				103,456				107,129
Other noncurrent liabilities		104,356				123,918				201,859
Noncurrent liabilities held for sale		100,541				127,693				130,581
Total liabilities		5,312,254				5,220,961				5,639,252
Stockholders’ equity
Preferred stock		—				—				—
Common stock		3,518				3,501				3,500
Additional paid-in capital		371,966				353,367				348,837
Retained earnings		247,365				554,796				476,796
Accumulated other comprehensive loss		(473,505	)			(492,311	)			(555,097	)
Total stockholders’ equity		149,344				419,353				274,036
Total liabilities and stockholders’ equity	$	5,461,598			$	5,640,314			$	5,913,288

TABLE 5
HANESBRANDS INC. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited)
	Quarters Ended								Nine Months Ended
	September 28, 2024 (1)				September 30, 2023 (1)				September 28, 2024 (1)				September 30, 2023 (1)
Operating Activities:
Net income (loss)	$	29,951			$	(38,799	)		$	(307,551	)		$	(95,667	)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation		18,528				20,543				58,506				56,246
Amortization of acquisition intangibles		1,924				4,133				10,127				12,478
Other amortization		1,997				3,458				8,195				9,856
Impairment of long-lived assets and goodwill		142				—				76,746				—
Inventory write-down charges (recoveries), net		(4,135	)			—				113,528				—
Loss on extinguishment of debt		—				—				—				8,466
(Gain) loss on sale of business and classification of assets held for sale		(741	)			(1,558	)			50,330				3,641
Amortization of debt issuance costs and debt discount		2,543				2,338				7,648				6,577
Other		11,559				(2,853	)			25,281				8,984
Changes in assets and liabilities:
Accounts receivable		(32,119	)			(34,502	)			(86,606	)			12,169
Inventories		97,686				311,636				55,836				444,592
Other assets		(12,420	)			15,784				(12,886	)			(20,833	)
Accounts payable		(48,972	)			(164,440	)			85,057				(125,411	)
Accrued pension and postretirement benefits		(2,878	)			1,241				(2,617	)			4,181
Accrued liabilities and other		29,150				38,130				115,218				(37,935	)
Net cash from operating activities		92,215				155,111				196,812				287,344
Investing Activities:
Capital expenditures		(4,088	)			(2,220	)			(32,179	)			(35,790	)
Proceeds from sales of assets		8,683				66				12,336				172
Proceeds from (payments for) disposition of business		(12,000	)			1,300				(12,000	)			1,300
Other		—				—