Hanesbrands Raises Full-Year Outlook Amid US-China Trade Tensions

Hanesbrands has raised its full-year 2025 outlook for net sales, operating profit, and EPS due to its better-than-expected Q2 performance. The company reported net sales of $991.3 million, a 1.8% YoY increase, and an operating profit of $234.6 million, reversing the earlier $27.8 million loss. HBI also paid down $1.5 billion of debt and reduced leverage by nearly 2.5 turns over the past two years.

Title: Hanesbrands Raises 2025 Outlook Following Strong Q2 Results

Hanesbrands (HBI) has reported its second-quarter 2025 results, which exceeded market expectations. The company's net sales for the quarter reached $991.3 million, marking a 1.8% year-over-year (YoY) increase. This performance was driven by a 1.1% increase in gross margin to 41.6% and a 2.2% increase in operating margin to 15.6% [3].

The company's operating profit for the quarter was $234.6 million, a significant reversal from the $27.8 million net loss reported in the same period last year. This turnaround is attributed to cost restructuring, productivity enhancements, and lower interest expenses from debt reduction. Hanesbrands has also reduced its leverage from 4.6x to 3.3x on a net debt to adjusted EBITDA basis, reflecting disciplined capital management [2].

In addition to the strong financial performance, Hanesbrands has raised its full-year 2025 outlook. The company now expects net sales of about $3.53 billion and EPS of $0.59, slightly ahead of previous targets. This guidance reflects the company's confidence in ongoing margin expansion and cost control [1].

The improved profitability and margin strength are a result of Hanesbrands' strategic focus on expanding into higher-margin categories such as activewear and scrubs, as well as optimizing operations. The company's successful tariff mitigation strategies and international business growth have also helped offset margin pressures. However, the pace of revenue improvement, particularly in the U.S. innerwear segment, remains a critical short-term catalyst [1].

Despite the positive outlook, investors should remain alert to persistent risks in the U.S. intimates category. The company's ability to sustain near-term catalysts and maintain business mix stability will be crucial for long-term success.

References:
1. [https://simplywall.st/stocks/us/consumer-durables/nyse-hbi/hanesbrands/news/hanesbrands-hbi-is-up-189-after-raising-guidance-and-posting](https://simplywall.st/stocks/us/consumer-durables/nyse-hbi/hanesbrands/news/hanesbrands-hbi-is-up-189-after-raising-guidance-and-posting)
2. [https://www.ainvest.com/news/hanesbrands-q2-2025-unpacking-key-contradictions-tariff-impacts-margins-segment-performance-2508/](https://www.ainvest.com/news/hanesbrands-q2-2025-unpacking-key-contradictions-tariff-impacts-margins-segment-performance-2508/)
3. [https://www.stocktitan.net/news/HBI/hanes-brands-inc-announces-better-than-expected-second-quarter-2025-9ikqrx6q0hdg.html](https://www.stocktitan.net/news/HBI/hanes-brands-inc-announces-better-than-expected-second-quarter-2025-9ikqrx6q0hdg.html)