Hanesbrands Reports $81.6M Net Income in Q2 2025, Significant Turnaround from Loss

Hanesbrands Inc. reported a net income of $81.6 million for the second quarter of 2025, a significant turnaround from a net loss of $298.4 million in the same period last year. The company’s revenue for the quarter reached $991.3 million, reflecting a 1.8% increase from $973.9 million in the prior year. This growth was attributed to sales from short-term transition service agreements and support for disposed businesses, although it was partially offset by a slowdown in consumer spending and adverse foreign currency impacts, particularly in the International segment.

The company’s operating profit surged to $154.7 million, compared to an operating loss of $63.2 million in the second quarter of 2024. This improvement in profitability was driven by a combination of cost savings initiatives, disciplined expense management, and a reduction in restructuring charges, which fell to $1 million from $189 million year-over-year. The operating margin improved to 15.6%, up from a negative margin of 6.5% in the previous year, indicating a more efficient cost structure and better management of operational expenses.

In terms of strategic developments, Hanesbrands has been actively restructuring its operations following the decision to exit the global Champion business and the U.S.-based outlet store business. The company has reclassified these operations as discontinued, which has allowed it to focus on its core innerwear and activewear segments. The restructuring efforts have included consolidating supply chains and reducing headcount, which are expected to enhance operational efficiency and profitability in the long term.

Operationally, the company reported a decrease in U.S. net sales by 0.6% to $735.5 million, primarily due to softer point-of-sale trends. Conversely, the International segment saw a 3.1% decline in sales to $226 million, largely impacted by unfavorable foreign currency exchange rates. The company’s total assets as of June 28, 2025, stood at $4.02 billion, with cash and cash equivalents of $220.3 million, reflecting a stable liquidity position. The company’s employee headcount has been adjusted as part of its restructuring efforts, although specific figures were not disclosed.

Looking ahead, Hanesbrands remains cautious about the macroeconomic environment, which continues to pose challenges such as inflation and changing consumer demand. The company is focused on maintaining compliance with its financial covenants and leveraging its cash flow to reduce debt. Management anticipates that ongoing strategic initiatives will position the company for growth, although they acknowledge the potential for volatility in market conditions.