Hanesbrands Reports $270.7M Net Income in Q3 2025 Amid Revenue Decline

Hanesbrands Inc. reported a net income of $270.7 million for the third quarter of 2025, a significant increase from $30 million in the same period last year. The company’s revenue for the quarter was $891.7 million, down 1% from $900.4 million in the third quarter of 2024. The decrease in sales was attributed to a late-quarter shift in replenishment orders from a major U.S. retail partner, ongoing macroeconomic pressures affecting consumer spending, and unfavorable foreign currency exchange rates impacting international sales. Despite the decline in revenue, the company achieved an operating profit of $107.5 million, up 14% from $94 million a year earlier, reflecting improved cost management and operational efficiencies.

For the nine months ending September 27, 2025, Hanesbrands reported net sales of $2.64 billion, a slight increase of 0.9% compared to $2.62 billion in the same period of 2024. The company’s gross profit rose to $1.09 billion, up 12.7% from $969.3 million, driven by a reduction in cost of sales. Operating profit for the nine-month period surged to $342.1 million, a substantial increase from $66.2 million in the prior year, primarily due to lower selling, general, and administrative expenses, which decreased by 16.9% to $750 million.

Strategically, Hanesbrands is undergoing significant changes, including the planned acquisition by Gildan Activewear Inc., announced on August 13, 2025. Under the terms of the merger agreement, Gildan will acquire all outstanding shares of Hanesbrands in exchange for a combination of cash and Gildan shares. The transaction is expected to close in late 2025 or early 2026, subject to stockholder and regulatory approvals. Additionally, the company has been restructuring its operations, including exiting the global Champion business and the U.S.-based outlet store business, which have been classified as discontinued operations.

Operationally, Hanesbrands has focused on improving its supply chain efficiency and reducing inventory levels. The company reported a decrease in its employee headcount as part of its restructuring efforts, which also included cost-saving initiatives. The company’s cash and cash equivalents stood at $217.6 million as of September 27, 2025, with total assets amounting to $4.28 billion. The company’s debt levels remain significant, with long-term debt of $2.21 billion, but it has maintained compliance with its financial covenants.

Looking ahead, Hanesbrands anticipates continued challenges from macroeconomic pressures, including inflation and consumer demand fluctuations. The company is committed to leveraging its brand portfolio and operational efficiencies to drive growth and improve margins. Management remains optimistic about the potential benefits of the Gildan acquisition and the ongoing restructuring efforts aimed at enhancing the company’s competitive position in the apparel market.