HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, announced robust financial results for the third quarter of 2024, surpassing expectations on profitability and cash flow generation. The company's strategic actions to streamline operations and enhance efficiencies are driving significant margin expansion and debt reduction.

In the third quarter, net sales were $937.1 million, a slight decline of 2.5% compared to the prior year, mainly due to the divestiture of the U.S. Sheer Hosiery business and unfavorable foreign exchange rates. On an organic constant currency basis, net sales remained consistent with the prior year.

The company reported impressive margin improvements, driven by lower input costs, supply chain optimization, and its assortment management initiative. Gross margin increased by a remarkable 530 basis points to 41.7%, while adjusted gross margin rose 525 basis points to 41.8%. Operating profit increased by 27.1% to $103 million, and adjusted operating margin expanded by 435 basis points to 13%.

HanesBrands continued to make progress in reducing its leverage, with its net debt-to-adjusted EBITDA ratio declining to 4.3 times, 1.2 times lower than the prior year. The company generated $92 million in cash flow from operations in the quarter and $197 million year-to-date.

Following the strong performance and improved visibility, HanesBrands raised its full-year 2024 outlook for operating profit, earnings per share, and cash flow. The company now expects adjusted operating profit of approximately $417 million and adjusted earnings per share of approximately $0.39, representing significant increases from the prior year.