Hanesbrands Stock Soars 18.71% on 345% Operating Profit Surge

Hanesbrands' stock surged 18.71% in pre-market trading on August 7, 2025, driven by a significant increase in operating profit and an optimistic outlook for the year.

Hanesbrands reported a remarkable 345% year-on-year increase in operating profit for the second quarter of 2025, reaching $155 million. This substantial growth was attributed to the successful implementation of transformation initiatives, which have delivered strong results. The company's adjusted operating profit also saw a notable increase of 22% to $153 million, reflecting a 255 basis points rise in the adjusted operating margin to 15.5%.

In addition to the impressive operating profit, Hanesbrands' net sales for the second quarter of 2025 increased by 1.8% to $991 million. The company's gross margin also improved significantly, advancing by 1,100 basis points to 41.6%. This was driven by cost savings, productivity gains, and reduced input costs. The adjusted gross margin also improved by 145 basis points to 41.2%.

Hanesbrands' earnings per share (EPS) for the second quarter of 2025 increased sharply by 162% compared to the previous year, reaching $0.24. On an adjusted basis, EPS grew by 60% year-over-year, also amounting to $0.24. The company's balance sheet also strengthened, with leverage decreasing to 3.3 times net debt-to-adjusted EBITDA, reflecting an improvement of 1.3 times from the previous year.

Given the strong performance in the second quarter, Hanesbrands has raised its full-year 2025 outlook for net sales, operating profit, and EPS, indicating confidence in continued growth and profitability. The company's transformation initiatives and cost-saving measures have positioned it well for future success, driving investor optimism and contributing to the significant pre-market stock surge.