Hanesbrands Inc. has reported its fourth-quarter and full-year 2024 results, surpassing expectations across all key metrics as its transformation strategy continues to yield positive results. The company's net sales for the quarter totaled $888 million, marking a 4.5% increase over the prior year. On an organic constant currency basis, net sales increased by 3.8% over the prior year.
The gross profit and gross margin also saw year-over-year increases, with gross profit reaching $390 million and gross margin reaching 43.9%. Adjusted gross profit and adjusted gross margin increased by 14% and 15% respectively compared to the prior year.
Operating profit and operating margin experienced significant growth, increasing by 27% to $120 million and 240 basis points to 13.5% respectively. Adjusted operating profit and adjusted operating margin also showed substantial increases, climbing by 33% to $126 million and 300 basis points to 14.2%.
The company's cash flow from operations for the full year was reported at $264 million, with a net debt-to-adjusted EBITDA leverage ratio of 3.4 times, representing a decrease of nearly 2 turns compared to the prior year. Hanesbrands also paid down over $1 billion of debt in 2024.
In terms of future outlook, for the fiscal year 2025, Hanesbrands expects net sales from continuing operations to range between approximately $3.47 billion to $3.52 billion, with projected headwinds of around $60 million from changes in foreign currency exchange rates. The company also anticipates a range of other financial metrics including adjusted operating profit, interest expense, tax expense, earnings per share, cash flow from operations, and capital investments.
Following these announcements, the company's shares moved -18.4%, and are now trading at a price of $6.25. For more information, read the company's full 8-K submission here.
