Hanesbrands to Report Q3 Earnings: What Should Investors Expect?

Hanesbrands Inc. HBI is likely to post year-over-year bottom-line growth when it reports third-quarter 2025 earnings on Nov. 6, before the opening bell.

The Zacks Consensus Estimate for earnings is pegged at 16 cents per share. The company reported earnings of 15 cents per share in the prior-year quarter. The consensus mark has been unchanged in the past 30 days.

The consensus estimate for quarterly revenues is pegged at $900.6 million, indicating a drop of 3.9% from the year-ago quarter’s reported figure.

HBI has a trailing four-quarter earnings surprise of 56.1%, on average. In the last reported quarter, the company posted an earnings surprise of 33.3%.

Factors to Consider

Hanesbrands has been facing ongoing consumer softness and category-specific pressures, which are likely to have weighed on its third-quarter sales. The company continued to experience a sluggish innerwear market in the United States, particularly within the intimate apparel category, while broader macroeconomic headwinds persisted across key international markets. 

The Zacks Consensus Estimate for U.S. and international segments’ revenues is pegged at $671.6 million and $209.1 million, respectively, indicating year-over-year declines of 1% and 19.3%.

On the last reported quarter’s earnings call, management cited ongoing consumer headwinds and a challenging demand backdrop in the U.S. innerwear market as factors likely to affect near-term sales. For the third quarter, Hanesbrands had projected net sales of $900 million, including a $7-million foreign currency exchange rate headwind, implying modest year-over-year softness.

On the positive side, Hanesbrands’ continued execution of its transformation and cost-efficiency initiatives likely to have supported profitability. The company’s restructuring actions, productivity improvements and lower SG&A expenses were expected to drive operating margin expansion and earnings growth, per the last reported quarter’s earnings call. For the third quarter, management envisioned adjusted operating profit of $122 million and adjusted earnings per share of 16 cents.

Management also highlighted sustained benefits from its leaner cost structure, supply-chain efficiencies and reduced interest expenses from debt paydown. These structural improvements are likely to have offset weaker sales and supported the bottom line.

What the Zacks Model Unveils

Our proven model does not conclusively predict earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Hanesbrands currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season:

The TJX Companies TJX currently has an Earnings ESP of +2.60% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register top-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.9 billion, which indicates an increase of 5.6% from the prior-year quarter’s actual.

The consensus estimate for quarterly earnings per share of $1.22 indicates a rise of 7% from the year-ago quarter’s reported number. TJX has a trailing four-quarter earnings surprise of 5.4%, on average.

Tapestry TPR currently has an Earnings ESP of +1.46% and a Zacks Rank of 2. 

TPR is likely to register bottom and top-line growth when it reports fiscal first-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.64 billion, which indicates 8.7% growth from the prior-year quarter.

The consensus estimate for earnings is pegged at $1.25 per share, which implies a 22.6% increase from the year-ago quarter's actual. TPR has a trailing four-quarter earnings surprise of 10.3%, on average.

Under Armour UAA currently has an Earnings ESP of +22.22% and a Zacks Rank of 3. 

The company is likely to register a bottom-line decline when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 2 cents, whereas it reported earnings of 30 cents per share in the prior-year quarter. 

The consensus mark for revenues is pegged at $1.31 billion, indicating a decrease of 6.7% from the figure reported in the prior-year quarter. UAA has a trailing four-quarter earnings surprise of 50.6%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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