News August 07, 2025
Hanesbrands Posts Year-Over-Year Sales Growth for Q2
The apparel manufacturer reported positive metrics for the second quarter of 2025 compared to previous down years.
Key Takeaways
• Hanesbrands (asi/59528) reported significant year-over-year growth in Q2 2025, including a 345% increase in operating profit and a gross margin rise to 41.6%, signaling the success of its transformation strategy and cost-saving initiatives.
• Despite a slight dip in net U.S. sales, Hanesbrands remains optimistic for the remainder of 2025, projecting $900 million in Q3 net sales and emphasizing innovation, brand investment and programming as core growth drivers.
Hanesbrands (asi/59528) is feeling optimistic about the rest of 2025.
The Winston-Salem, NC-based apparel manufacturer released its second-quarter 2025 financial results, with increases in net sales, gross margin, adjusted gross margin, operating profit and earnings per share.
Gross margin increased to 41.6% over the previous year, while operating profit grew to $155 million – a 345% year-over-year increase.
“For the third consecutive quarter, we delivered revenue, profit and earnings per share growth that exceeded our expectations as we continue to see the benefits of our growth strategy and prior transformation initiatives,” Hanesbrands CEO Steve Bratspies said in a statement. “With our strong performance to date and our visibility to cost savings and input costs, we raised our full-year outlook, which continues to reflect our expected impact from U.S. tariffs.”
Despite the growth and optimism, Hanesbrands noted that U.S. net sales for the quarter decreased $5 million as compared to the second quarter of 2024. The company detailed that throughout this period, and going forward, Hanesbrands will focus on its “core growth fundamentals including innovation, brand investments and incremental programming opportunities,” which delivered growth in its basics, active and new business segments.
“With our strong performance to date and our visibility to cost savings and input costs, we raised our full-year outlook, which continues to reflect our expected impact from U.S. tariffs.” Steve Bratspies, Hanesbrands (asi/59528)
Going forward through 2025, Hanesbrands anticipates net sales from continuing operations for the third quarter of 2025 to reach approximately $900 million.
Hanes is coming off the sale of its Champion brand for $1.2 billion, which was finalized in October 2024 to Authentic Brands Group. At the time, Bratspies said the profit from the Champion sale would be used to pay down approximately $1 billion in debt by the end of last year.
“Looking ahead, we believe we are well-positioned to generate strong shareholder returns over the next several years through top-line growth, margin expansion, double-digit earnings per share growth and further deleveraging of our balance sheet,” he said at the time.
For the second quarter of 2025, Hanes reported a 1.8% net sales increase over the same period last year, totaling $991 million.
The figures from 2025 are in contrast to 2024 when total global sales dropped 3.6% for the full year.