What happened

Shares of Hanesbrands Inc. (NYSE:HBI), a manufacturer of apparel with brands such as Hanes, Champion, and others, have plunged 18% as of 12:19 p.m. EDT Wednesday after second-quarter earnings fell short of estimates.

So what

Starting from the top, Hanesbrands posted second-quarter revenue of $1.72 billion, which matched Wall Street estimates. Its adjusted earnings per share checked in at $0.45, which was a penny per share below analysts' estimates.

Two people shopping in an apparel store.

Image source: Getty Images.

In a press release, Hanes Chief Executive Officer Gerald W. Evans Jr. said:

"Our results for the second-quarter were consistent with our guidance and the year is unfolding as we expected. We achieved organic growth for the fourth consecutive quarter with strong International and global Champion sales growth. We continue to address the challenging environment for intimate apparel and expect our turn-around plan to gain additional traction by the end of the year."

Now what

Arguably the biggest news from Hanesbrands Wednesday report was that Target doesn't plan to renew a contract for C9 by Champion gear when it's completed in January 2020 -- a contract that had been in place for 15 years. Wednesday's decline mostly offset the stock's gains since its investor presentation on May 15 that had given investors reason to believe the company could drive substantial earnings growth through 2020. Despite the negative Target development, management believes Champion sales will still reach its projected $2 billion by 2022.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.