HanesBrands Inc., the global apparel leader based in Winston-Salem, North Carolina, has announced better-than-expected financial results for the first quarter of 2025, demonstrating resilience in the face of macroeconomic challenges, including US tariffs.

The company reported net sales of $760 million, marking a 2.1% increase compared to the prior year. On an organic constant currency basis, sales remained flat yet results outpaced internal forecasts.

Gross profit rose 6% to $317 million, with gross margin increasing by 170 basis points to 41.7%, driven by lower input costs, product assortment efficiencies, and ongoing cost-saving initiatives. Adjusted gross profit and margin were similarly strong, excluding restructuring-related charges.

Operating profit doubled year-on-year, increasing 126% to $80 million, with an operating margin of 10.5%. Adjusted operating profit reached $81 million, up 61%, with a 10.7% adjusted margin.

SG&A expenses declined both in absolute terms and as a percentage of sales, falling to 31.2% compared to the previous year’s 35.2%. Strategic investments in brand building were offset by savings from structural cost optimisation and disciplined expense management.

Earnings per share surged significantly, with GAAP EPS up 145% to $0.04, and adjusted EPS climbing 240% to $0.07.

CEO Steve Bratspies noted: “We delivered another strong quarter, including revenue, operating profit and earnings per share that exceeded our expectations. Our growth strategy and prior transformation initiatives continue to pay off. We’ve reiterated our full-year outlook, factoring in tariff impacts, and remain confident in our ability to offset cost headwinds and capture new revenue opportunities.”

During the quarter, HanesBrands completed the refinancing of all 2026 maturities and reduced its leverage ratio by 1.4 times to 3.6 times net debt-to-adjusted EBITDA. The company expects continued gains from its global supply chain optimisation, inventory control, and improved service levels throughout the remainder of 2025.

www.hanes.com