Hanesbrands turns to first-quarter profit on higher sales, lower restructuring costs

Hanesbrands turns to profit in 1Q

WINSTON-SALEM, N.C. — Underwear maker Hanesbrands Inc. said Wednesday that it turned a profit in the first-quarter, reversing a year-ago loss on higher sales and lower restructuring costs.

The company also raised its 2010 sales guidance to 6 percent to 8 percent growth.

Hanesbrands reported earnings of $36.5 million, or 38 cents per share, compared to a 2009 first-quarter loss of 19.3 million, or 20 cents per share.

Revenue was $927.8 million in the quarter that ended April 3, an 8 percent increase from $857 a year ago.

Analysts surveyed by Thomson Reuters expected quarterly earnings of 23 cents per share on revenue of $911 million.

The company said the biggest sales gain came in its “innerwear” division, which accounted for $33 million of the overall $70 million gain. Outerwear made up another $24 million.

The larger division’s growth was driven by double-digit sales of men’s underwear, the company said.

Hanesbrands also reported no restructuring costs during the first quarter. Last year, it had $18.6 million in restructuring costs.

Company shares rose 74 cents, or 2.5 percent, to close at $29.84.