Hanesbrands Inc. (NYSE:HBI) Q1 2015 Earnings Conference Call - Final Transcript

Apr 23, 2015 • 04:30 pm ET


Hanesbrands Inc. (NYSE:HBI) Q1 2015 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen and welcome to the HanesBrands First Quarter 2015 Financial Results Conference Call. [Operator Instructions]

I would now like to hand the conference over to T.C. Robillard, Vice President, Investor Relations. Please go ahead.

T.C. Robillard

Good day, everyone, and welcome to the HanesBrands' quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress after the first quarter of 2015. Hopefully, everyone has had a chance to review the news release we issued earlier today. The news release and the audio replay of the webcast of this call can be found in the Investors section of our hanes.com website.

I want to remind everyone that we may make forward-looking statements on the call today, either in our prepared remarks or in the associated question-and-answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. These risks are detailed in our various filings with the SEC, such as our most recent Forms 10-K and 10-Q, and may be found on our website as well as in our news releases and other communications.

The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made. Unless otherwise noted, today's references to our consolidated financial results, as well as our 2015 guidance, exclude all one-time charges and expenses. Additional information, including a reconciliation of these and other non-GAAP performance measures to GAAP, can be found in today's press release, which is available on the Investors section of our hanes.com website.

With me on the call today are Rich Noll, our Chief Executive Officer; Gerald Evans, our Chief Operating Officer; and Rick Moss, our Chief Financial Officer. For today's call, Rich will highlight a few big-picture themes, Gerald will provide a sense of what is happening in our businesses and Rick will emphasize some of the financial aspects of our results.

I will now turn the call over to Rich.

Richard A. Noll

Thank you, T.C. Our business model continues to deliver significant returns for our shareholders as contributions from our acquisition strategy and margin improvements in our base business drove 16% growth in earnings per share in the first quarter and that was on top of last year's 50% increase. Our acquisition strategy is working extremely well and this is a great quarter to see; how all facets of this strategy are delivering significant growth. For example, Gear For Sports, which has been a part of our core operations for several years contributed double-digit revenue and operating profit growth in the quarter.

Maidenform, which was fully integrated only last year delivered additional synergies and contributed nicely to the first quarter's profit growth. As we continue to internalize their production and launch our ComfortFlex Fit [Indecipherable] platform under the Maidenform brand later this year, we are on track to more than double their operating profit to $80 million by