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Hanesbrands Inc. HBI is likely to register a top-line decline when it reports first-quarter 2025 earnings on May 8. The Zacks Consensus Estimate for revenues is pegged at $765.8 million, suggesting a decrease of 33.8% from the prior-year quarter's level.

The consensus mark for first-quarter earnings has remained unchanged in the past 30 days at 3 cents per share, indicating a significant improvement from a loss of 2 cents per share in the year-ago quarter. HBI has a trailing four-quarter earnings surprise of 43.6%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Hanesbrands Inc. Price and EPS Surprise

Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote

Things to Know Ahead of HBI’s Q1 Earnings

Hanesbrands continues to benefit from its consumer-centric strategy, which has played a vital role in enhancing its overall performance. The company is successfully gaining market share through targeted product innovation, particularly appealing to younger consumers, and by expanding its permanent retail footprint. These strategic initiatives are expected to support its first-quarter 2025 results. However, foreign currency fluctuations continue to pose a challenge.

For the first quarter of 2025, the company projects net sales from continuing operations of $750 million, including a $15 million foreign currency exchange rate headwind. This represents about a 1% increase from the prior year on a reported basis. Organic constant-currency net sales are likely to have been flat year over year.

Hanesbrands continues to leverage its core financial strengths to fuel long-term growth and stability. The company remains focused on preserving healthy profit margins and generating strong cash flow, supported by strategic brand-building, data-driven insights, inventory optimization and disciplined SKU management. These operational efficiencies are expected to have contributed to profitability in the upcoming quarterly results.

For the first quarter of 2025, Hanesbrands projects operating profit from continuing operations of approximately $55 million, with adjusted operating profit expected to have reached $65 million. This outlook includes an estimated $1 million impact from unfavorable foreign currency exchange rates.

Hanesbrands continues to navigate a difficult macroeconomic environment marked by inflation, market volatility and subdued consumer demand. These factors have been posing challenges across its key product categories. For the first quarter, the company projects a loss per share from continuing operations of 5 cents, while adjusted earnings per share from continuing operations are estimated at 2 cents.