Shares of Hanesbrands (HBI 4.84%) were soaring 22% higher in morning trading Tuesday after the basic-apparel maker reported solid sales and earnings growth in the fourth quarter.
The results indicate Hanesbrands was perfectly positioned to capitalize on the health and wellness trends that developed in the wake of the coronavirus pandemic. Its basics brands like Playtex, Maidenform, and Wonderbra meshed well with the casual clothes consumers chose, as did its Champion brand.
Sales for the quarter rose to $1.8 billion from $1.75 billion, and handily beat consensus estimates of $1.64 billion.
Although Hanesbrands' adjusted profits were $0.38 per share, down from $0.46 last year, they trounced Wall Street's forecast of $0.29 per share.
Hanesbrands' "innerwear" segment saw sales jump 13% year over year, and it was able to gain share in the kids market, while athletic wear sales were up 11% due to strong global sales of Champion, a nice turnaround after Target stopped carrying the C9 line last year.
Its international business also continued to improve with sales up 2%, though on a constant currency basis they were down 3% from last year. Hanesbrands also declared a $0.15 per share dividend, the 32nd consecutive quarter of making a shareholder payout.
With expectations for first-quarter sales to grow 14% at the midpoint of its range with a 10% expansion in operating profits, Hanesbrands is ready to run higher still.