UBS Updates Hanesbrands to a Neutral Rating.
- UBS updates its stance on Hanesbrands to Neutral following the sale of Champion.
- The sale of Champion to Authentic Brands Group could reach up to $1.5 billion, with a base value of $1.2 billion.
- Hanesbrands' stock price rose by 4.95% to $5.3 after the announcement of the Champion sale.
On Wednesday, June 5, 2024, UBS updated its stance on Hanesbrands (NYSE:HBI), changing its grade to Neutral. This adjustment reflects a hold action on the stock, which was priced at $5.3 at the time of the announcement. This reevaluation by UBS was reported following a more positive outlook on Hanesbrands after the sale of Champion. The news was published by TheFly, underscoring the financial institution's neutral position on HBI.
Hanesbrands, a well-known player in the apparel industry, has recently made headlines with its decision to sell its Champion sports apparel label to Authentic Brands Group. This deal, valued at a minimum of $1.2 billion, signifies a strategic pivot for Hanesbrands, aiming to streamline its operations and concentrate on its core business areas. The sale of Champion, a prominent brand within the sports apparel sector, to Authentic Brands Group, which owns a portfolio of over 50 brands, is a major move in the apparel industry.
The transaction's significance is further highlighted by its potential to reach up to $1.5 billion, should certain performance thresholds be met. This allows for an additional cash contingent consideration of up to $300 million, marking a notable shift in the ownership of the Champion brand. This strategic sale was disclosed on Wednesday, marking a pivotal moment for Hanesbrands in its business strategy.
Following this announcement, Hanesbrands Inc. (HBI) experienced a notable increase in its share price during intraday trading on Wednesday. The stock price rose by 4.95% to $5.3, with a change of $0.25, fluctuating between a low of $5.09 and a high of $5.58 during the day. Over the past year, HBI's stock has ranged from a low of $3.54 to a high of $5.86, with the company's market capitalization standing at approximately $1.86 billion and a trading volume of about 9.99 million shares. This financial performance and strategic maneuvering by Hanesbrands reflect its efforts to focus on its core business areas while capitalizing on the value of its Champion brand.
| Symbol | Price | %chg |
|---|---|---|
| POLU.JK | 8825 | 0 |
| 383220.KS | 81000 | -1.6 |
| SRIL.JK | 146 | 0 |
| 111770.KS | 59400 | -3.54 |
Hanesbrands Preannounces Q4 Results, CFO Resigns, Shares Up 3%
Hanesbrands Inc. (NYSE:HBI) shares were trading more than 3% higher today afternoon following the company’s preannounced Q4 sales and EBIT, noting that the top line came in slightly above the prior guidance range (which was for a decline of 17-20%), but EBIT was only at the midpoint of the range ($70-$100 million, a dollar decline of 55-70%).
The company also noted that they reached their plan for inventory, which was for units to be down year-over-year. With few details, management also announced plans to refinance upcoming maturities (approximately $1.5 billion of senior notes coming due in 2024) and to increase cost savings.
The company also announced the resignation of CFO Michael Dastugue, for family-related reasons. Dastugue will continue to serve the company in a financial consultancy position through Q2/23. In the interim, CAO and Controller Scott Lewis will operate as CFO.
Hanesbrands Preannounces Q4 Results, CFO Resigns, Shares Up 3%
Hanesbrands Inc. (NYSE:HBI) shares were trading more than 3% higher today afternoon following the company’s preannounced Q4 sales and EBIT, noting that the top line came in slightly above the prior guidance range (which was for a decline of 17-20%), but EBIT was only at the midpoint of the range ($70-$100 million, a dollar decline of 55-70%).
The company also noted that they reached their plan for inventory, which was for units to be down year-over-year. With few details, management also announced plans to refinance upcoming maturities (approximately $1.5 billion of senior notes coming due in 2024) and to increase cost savings.
The company also announced the resignation of CFO Michael Dastugue, for family-related reasons. Dastugue will continue to serve the company in a financial consultancy position through Q2/23. In the interim, CAO and Controller Scott Lewis will operate as CFO.
