Hanesbrands Began Cutting Annual Profit Forecasts

Us underwear maker Hanesbrands inc. (nyse:hbi) released its two quarter results after the end of the two quarter of July 2, 2016. The group's earnings per share were $0.34, excluding the one-time acquisition of EPS, which was adjusted to 0.51 US dollars, which is slightly less than Zacks and Thomson reuters Thomson Reuters's expected $0.52.

Affected by unfavorable earnings reports,

Inc. (nyse:hbi) shares fell nearly 5% to 24.40 dollars after the market.

As of the two quarter of July 2, 2016, Hanesbrands inc. recorded a net profit of US $128 million 100 thousand, gross profit of US $557 million 300 thousand, a 1.9% decrease compared with the same period last year, and gross profit margin increased to 50 from 50 basis points.

In the two quarter, Hanesbrands Inc. revenue was recorded at $1 billion 472 million 700 thousand, a decrease of 3 from.2% in the same period of last year, and a decrease of.2%, which is much lower than that of Zacks's $1 billion 540 million.

During the period, the income of the underwear Department declined by 4.7% to 749 million 200 thousand US dollars; the income of the sportswear Department declined by 3.6% to 367 million 400 thousand dollars; the revenue of the direct selling department dropped by 3.7% to 86 million 451 thousand US dollars; and the international business increased 1.9% to 269 million 700 thousand dollars.

In the two quarter, Hanesbrands inc. recorded a profit of $221 million 200 thousand, and its overall profit jumped 59.2%.

Plunged 10.2% to 181 million 400 thousand dollars; sports apparel revenue fell 7% to 55 million 816 thousand dollars.

Hanesbrands Inc. said that during the two quarter, the acquisition of Australia's largest underwear and pillow maker Pacific brands ltd. (pgb.ax) and champion Europe resulted in a $180 million pre tax related acquisition, financing and other expenses, which was higher than the expected $160 million.

In view of the impact of mergers and acquisitions, Hanesbrands inc. downgrades

The annual EPS forecast was revised down to US $1.44 -1.54 US dollars, which was expected to be US $1.51 -1.57 US dollars, and the operating profit forecast was reduced to US $760 million US $-7.95, after which it was expected to be US $780 million US $-8.15 billion.

The two data are expected to increase by 41% and 31% respectively.

However, the group still maintains $1.89 -1.95 non-GAAP EPS expected.