Hanesbrands Inc. (NYSE:HBI) Q2 2018 Earnings Conference Call Transcript

Aug 01, 2018 • 08:30 am ET

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Hanesbrands Inc. (NYSE:HBI) Q2 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the HanesBrands Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) Later, we'll conduct a question-and-answer session and instructions will follow at that time. As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference, Mr. T.C. Robillard. Sir, please go ahead.

Executive
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 second quarter of 2018. Hopefully, everyone has had a chance to review the news release we issued earlier today. The news release, updated FAQ document and a replay of this call can be found in the Investors section of our hanes.com website.

On the call today, we may make forward-looking statements 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 and may be found on our website as well as in our news releases. 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 2018 guidance represent continuing operations and exclude all acquisition, integration and other action related 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.

With me on the call today are Gerald Evans, our Chief Executive Officer; and Barry Hytinen, our Chief Financial Officer. For today's call, Gerald and Barry will provide some brief remarks and then we'll open it up to your questions. I will now turn the call over to Gerald.

Executive
Gerald Evans

Thank you, T.C.

For the quarter, Hanes delivered revenue, operating profit and earnings per share that were at the midpoint of our guidance, while operating cash flow came in ahead of plan. Overall, the year is unfolding as expected. We reiterated our full year guidance and we remain well positioned for accelerating revenue, profit, and cash flow growth in the second half.

At our Investor Day in May, we spoke about our efforts over the past several years to reinvigorate our Sell More, Spend Less and Generate Cash strategy by diversifying our business to become a more global company, one that's able to fully capture the leverage and power of our global supply chain. This strategy is designed to return the business to more consistent organic growth, further improve profitability by leveraging our increased scale and generate significantly higher levels of cash flow.

And our progress continued in the second quarter with strong performance across our key growth initiatives. Consumer-directed sales increased to 22% of total sales, including