|
|
|
Maryland
|
001-32891
|
20-3552316
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
|
|
1000 East Hanes Mill Road
|
|
|
|
Winston-Salem,
|
North Carolina
|
|
27105
|
(Address of principal executive offices)
|
|
(Zip Code)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, Par Value $0.01
|
HBI
|
New York Stock Exchange
|
Exhibit 99.1
|
|
|
Exhibit 99.2
|
|
|
Exhibit 104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
|
|
|
|
|
July 30, 2020
|
|
HANESBRANDS INC.
|
||
|
|
|
||
|
|
By:
|
|
/s/ M. Scott Lewis
|
|
|
|
|
M. Scott Lewis
|
|
|
|
|
Interim Chief Financial Officer and Chief Accounting Officer
|
|
news release
|
News Media, contact:
|
Matt Hall, (336) 519-3386
|
|
|
Analysts and Investors, contact:
|
T.C. Robillard, (336) 519-2115
|
•
|
Employees rise to meet pandemic challenges globally with safety-first manufacturing, distribution and selling to mitigate COVID-19 market disruptions
|
•
|
2Q GAAP EPS increases 12% to $0.46; Adjusted EPS increases 58% to $0.60
|
•
|
2Q net sales of $1.74 billion driven by better-than-base-case-scenario apparel sales, including increasing point-of-sale trends and market-share gains, and better-than-expected new personal protective garments business
|
•
|
2Q net cash from operations of $65 million; year-to-date operating cash flow $40 million better than a year ago
|
•
|
Quarter-end liquidity of approximately $1.8 billion provides continued balance sheet strength and operational flexibility
|
|
Quarters Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
June 27,
2020 |
|
June 29,
2019 |
|
% Change
|
|
June 27,
2020 |
|
June 29,
2019 |
|
% Change
|
||||||||||
Net sales
|
$
|
1,738,779
|
|
|
$
|
1,760,927
|
|
|
(1.3
|
)%
|
|
$
|
3,055,241
|
|
|
$
|
3,348,951
|
|
|
(8.8
|
)%
|
Cost of sales
|
1,105,767
|
|
|
1,085,404
|
|
|
|
|
1,948,497
|
|
|
2,053,397
|
|
|
|
||||||
Gross profit
|
633,012
|
|
|
675,523
|
|
|
(6.3
|
)%
|
|
1,106,744
|
|
|
1,295,554
|
|
|
(14.6
|
)%
|
||||
As a % of net sales
|
36.4
|
%
|
|
38.4
|
%
|
|
|
|
36.2
|
%
|
|
38.7
|
%
|
|
|
||||||
Selling, general and administrative expenses
|
391,476
|
|
|
445,923
|
|
|
|
|
831,078
|
|
|
916,310
|
|
|
|
||||||
As a % of net sales
|
22.5
|
%
|
|
25.3
|
%
|
|
|
|
27.2
|
%
|
|
27.4
|
%
|
|
|
||||||
Operating profit
|
241,536
|
|
|
229,600
|
|
|
5.2
|
%
|
|
275,666
|
|
|
379,244
|
|
|
(27.3
|
)%
|
||||
As a % of net sales
|
13.9
|
%
|
|
13.0
|
%
|
|
|
|
9.0
|
%
|
|
11.3
|
%
|
|
|
||||||
Other expenses
|
5,050
|
|
|
8,249
|
|
|
|
|
11,540
|
|
|
15,700
|
|
|
|
||||||
Interest expense, net
|
41,659
|
|
|
46,522
|
|
|
|
|
78,508
|
|
|
94,581
|
|
|
|
||||||
Income before income tax expense
|
194,827
|
|
|
174,829
|
|
|
|
|
185,618
|
|
|
268,963
|
|
|
|
||||||
Income tax expense
|
33,646
|
|
|
25,274
|
|
|
|
|
32,311
|
|
|
38,320
|
|
|
|
||||||
Net income
|
$
|
161,181
|
|
|
$
|
149,555
|
|
|
7.8
|
%
|
|
$
|
153,307
|
|
|
$
|
230,643
|
|
|
(33.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.43
|
|
|
$
|
0.63
|
|
|
|
||
Diluted
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.43
|
|
|
$
|
0.63
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
350,538
|
|
|
364,637
|
|
|
|
|
354,778
|
|
|
364,603
|
|
|
|
||||||
Diluted
|
350,829
|
|
|
365,537
|
|
|
|
|
355,133
|
|
|
365,418
|
|
|
|
The following tables present a reconciliation of reported results on a constant currency basis for the quarter and six months ended June 27, 2020 and a comparison to prior year:
|
|
Quarter Ended June 27, 2020
|
|
|
|
|
|
|
||||||||||||||
|
As Reported
|
|
Impact from Foreign Currency1
|
|
Constant Currency
|
|
Quarter Ended
June 29, 2019
|
|
% Change,
As Reported
|
|
% Change,
Constant Currency
|
||||||||||
As reported under GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,738,779
|
|
|
$
|
(13,653
|
)
|
|
$
|
1,752,432
|
|
|
$
|
1,760,927
|
|
|
(1.3
|
)%
|
|
(0.5
|
)%
|
Gross profit
|
633,012
|
|
|
(6,298
|
)
|
|
639,310
|
|
|
675,523
|
|
|
(6.3
|
)
|
|
(5.4
|
)
|
||||
Operating profit
|
241,536
|
|
|
111
|
|
|
241,425
|
|
|
229,600
|
|
|
5.2
|
|
|
5.2
|
|
||||
Diluted earnings per share
|
$
|
0.46
|
|
|
$
|
0.00
|
|
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
12.2
|
%
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As adjusted:2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,738,779
|
|
|
$
|
(13,653
|
)
|
|
$
|
1,752,432
|
|
|
$
|
1,642,217
|
|
|
5.9
|
%
|
|
6.7
|
%
|
Gross profit
|
659,546
|
|
|
(6,298
|
)
|
|
665,844
|
|
|
652,952
|
|
|
1.0
|
|
|
2.0
|
|
||||
Operating profit
|
304,832
|
|
|
111
|
|
|
304,721
|
|
|
216,752
|
|
|
40.6
|
|
|
40.6
|
|
||||
Diluted earnings per share
|
$
|
0.60
|
|
|
$
|
0.00
|
|
|
$
|
0.60
|
|
|
$
|
0.38
|
|
|
57.9
|
%
|
|
57.9
|
%
|
|
Six Months Ended June 27, 2020
|
|
|
|
|
|
|
||||||||||||||
|
As Reported
|
|
Impact from Foreign Currency1
|
|
Constant Currency
|
|
Six Months Ended
June 29, 2019
|
|
% Change,
As Reported
|
|
% Change,
Constant Currency
|
||||||||||
As reported under GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
3,055,241
|
|
|
$
|
(33,854
|
)
|
|
$
|
3,089,095
|
|
|
$
|
3,348,951
|
|
|
(8.8
|
)%
|
|
(7.8
|
)%
|
Gross profit
|
1,106,744
|
|
|
(16,560
|
)
|
|
1,123,304
|
|
|
1,295,554
|
|
|
(14.6
|
)
|
|
(13.3
|
)
|
||||
Operating profit
|
275,666
|
|
|
(774
|
)
|
|
276,440
|
|
|
379,244
|
|
|
(27.3
|
)
|
|
(27.1
|
)
|
||||
Diluted earnings per share
|
$
|
0.43
|
|
|
$
|
0.00
|
|
|
$
|
0.43
|
|
|
$
|
0.63
|
|
|
(31.7
|
)%
|
|
(31.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As adjusted:2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
3,055,241
|
|
|
$
|
(33,854
|
)
|
|
$
|
3,089,095
|
|
|
$
|
3,136,137
|
|
|
(2.6
|
)%
|
|
(1.5
|
)%
|
Gross profit
|
1,155,091
|
|
|
(16,560
|
)
|
|
1,171,651
|
|
|
1,260,787
|
|
|
(8.4
|
)
|
|
(7.1
|
)
|
||||
Operating profit
|
368,161
|
|
|
(774
|
)
|
|
368,935
|
|
|
366,846
|
|
|
0.4
|
|
|
0.6
|
|
||||
Diluted earnings per share
|
$
|
0.65
|
|
|
$
|
0.00
|
|
|
$
|
0.65
|
|
|
$
|
0.60
|
|
|
8.3
|
%
|
|
8.3
|
%
|
1
|
Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.
|
2
|
Results for the quarters and six months ended June 27, 2020 and June 29, 2019 reflect adjustments for restructuring and other action-related charges. Results for the quarter and six months ended June 29, 2019 also reflect adjustments for the exited C9 Champion program at Target and DKNY Intimates license. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Table 5.
|
|
Quarters Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
June 27,
2020 |
|
June 29, 2019 Rebased1
|
|
% Change
|
|
June 27,
2020 |
|
June 29, 2019 Rebased1
|
|
% Change
|
||||||||||
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
1,094,814
|
|
|
$
|
657,477
|
|
|
66.5
|
%
|
|
$
|
1,517,216
|
|
|
$
|
1,123,891
|
|
|
35.0
|
%
|
Activewear
|
168,379
|
|
|
350,694
|
|
|
(52.0
|
)
|
|
456,379
|
|
|
671,461
|
|
|
(32.0
|
)
|
||||
International
|
456,875
|
|
|
568,863
|
|
|
(19.7
|
)
|
|
1,012,776
|
|
|
1,215,043
|
|
|
(16.6
|
)
|
||||
Other
|
18,711
|
|
|
65,183
|
|
|
(71.3
|
)
|
|
68,870
|
|
|
125,742
|
|
|
(45.2
|
)
|
||||
Total net sales
|
$
|
1,738,779
|
|
|
$
|
1,642,217
|
|
|
5.9
|
%
|
|
$
|
3,055,241
|
|
|
$
|
3,136,137
|
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
304,524
|
|
|
$
|
146,997
|
|
|
107.2
|
%
|
|
$
|
386,075
|
|
|
$
|
250,123
|
|
|
54.4
|
%
|
Activewear
|
(5,751
|
)
|
|
45,855
|
|
|
(112.5
|
)
|
|
2,357
|
|
|
70,025
|
|
|
(96.6
|
)
|
||||
International
|
79,124
|
|
|
81,078
|
|
|
(2.4
|
)
|
|
131,142
|
|
|
180,851
|
|
|
(27.5
|
)
|
||||
Other
|
(12,270
|
)
|
|
6,032
|
|
|
(303.4
|
)
|
|
(18,395
|
)
|
|
6,786
|
|
|
(371.1
|
)
|
||||
General corporate expenses/other
|
(60,795
|
)
|
|
(63,210
|
)
|
|
(3.8
|
)
|
|
(133,018
|
)
|
|
(140,939
|
)
|
|
(5.6
|
)
|
||||
Total operating profit before restructuring and other action-related charges
|
304,832
|
|
|
216,752
|
|
|
40.6
|
|
|
368,161
|
|
|
366,846
|
|
|
0.4
|
|
||||
Restructuring and other action-related charges
|
(63,296
|
)
|
|
(12,609
|
)
|
|
402.0
|
|
|
(92,495
|
)
|
|
(33,982
|
)
|
|
172.2
|
|
||||
Total operating profit
|
$
|
241,536
|
|
|
$
|
204,143
|
|
|
18.3
|
%
|
|
$
|
275,666
|
|
|
$
|
332,864
|
|
|
(17.2
|
)%
|
1
|
Results for the quarter and six months ended June 29, 2019 reflect adjustments for the exited C9 Champion program at Target and DKNY Intimates license. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Table 5.
|
The following table presents a reconciliation of reported net sales adjusted for personal protective equipment (“PPE”) sales for the quarter and six months ended June 27, 2020 and a comparison to prior year.
|
|
Quarter Ended June 27, 2020
|
||||||||||||||||
|
As Reported
|
|
% Change1
|
|
PPE
|
|
Adjusted for PPE
|
|
% Change1
|
||||||||
Segment net sales:
|
|
|
|
|
|
|
|
|
|
||||||||
Innerwear
|
$
|
1,094,814
|
|
|
66.5
|
%
|
|
$
|
613,516
|
|
|
$
|
481,298
|
|
|
(26.8
|
)%
|
Activewear
|
168,379
|
|
|
(52.0
|
)
|
|
—
|
|
|
168,379
|
|
|
(52.0
|
)
|
|||
International
|
456,875
|
|
|
(19.7
|
)
|
|
138,707
|
|
|
318,168
|
|
|
(44.1
|
)
|
|||
Other
|
18,711
|
|
|
(71.3
|
)
|
|
—
|
|
|
18,711
|
|
|
(71.3
|
)
|
|||
Net sales
|
$
|
1,738,779
|
|
|
5.9
|
%
|
|
$
|
752,223
|
|
|
$
|
986,556
|
|
|
(39.9
|
)%
|
|
Six Months Ended June 27, 2020
|
||||||||||||||||
|
As Reported
|
|
% Change1
|
|
PPE
|
|
Adjusted for PPE
|
|
% Change1
|
||||||||
Segment net sales:
|
|
|
|
|
|
|
|
|
|
||||||||
Innerwear
|
$
|
1,517,216
|
|
|
35.0
|
%
|
|
$
|
613,516
|
|
|
$
|
903,700
|
|
|
(19.6
|
)%
|
Activewear
|
456,379
|
|
|
(32.0
|
)
|
|
—
|
|
|
456,379
|
|
|
(32.0
|
)
|
|||
International
|
1,012,776
|
|
|
(16.6
|
)
|
|
138,707
|
|
|
874,069
|
|
|
(28.1
|
)
|
|||
Other
|
68,870
|
|
|
(45.2
|
)
|
|
—
|
|
|
68,870
|
|
|
(45.2
|
)
|
|||
Net sales
|
$
|
3,055,241
|
|
|
(2.6
|
)%
|
|
$
|
752,223
|
|
|
$
|
2,303,018
|
|
|
(26.6
|
)%
|
1
|
The comparison to the quarter and six months ended June 29, 2019 reflects adjustments for the exited C9 Champion program at Target and DKNY Intimates license. See “Reconciliation of Select GAAP Measures to Non-GAAP Measures” in Table 5.
|
Including the unfavorable foreign currency impact of $0.7 million, global Champion sales outside the mass channel decreased approximately 46% in the second quarter of 2020 compared to the second quarter of 2019. On a constant currency basis, the global Champion sales decrease remained the same at approximately 46%.
|
|
June 27,
2020 |
|
December 28,
2019 |
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
683,114
|
|
|
$
|
328,876
|
|
Trade accounts receivable, net
|
1,196,826
|
|
|
815,210
|
|
||
Inventories
|
1,958,443
|
|
|
1,905,845
|
|
||
Other current assets
|
193,422
|
|
|
174,634
|
|
||
Total current assets
|
4,031,805
|
|
|
3,224,565
|
|
||
|
|
|
|
||||
Property, net
|
565,849
|
|
|
587,896
|
|
||
Right-of-use assets
|
479,677
|
|
|
487,787
|
|
||
Trademarks and other identifiable intangibles, net
|
1,478,721
|
|
|
1,520,800
|
|
||
Goodwill
|
1,233,184
|
|
|
1,235,711
|
|
||
Deferred tax assets
|
200,047
|
|
|
203,331
|
|
||
Other noncurrent assets
|
123,677
|
|
|
93,896
|
|
||
Total assets
|
$
|
8,112,960
|
|
|
$
|
7,353,986
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
1,152,273
|
|
|
$
|
959,006
|
|
Accrued liabilities
|
568,228
|
|
|
531,184
|
|
||
Lease liabilities
|
160,432
|
|
|
166,091
|
|
||
Notes payable
|
8,803
|
|
|
4,244
|
|
||
Accounts Receivable Securitization Facility
|
—
|
|
|
—
|
|
||
Current portion of long-term debt
|
112,512
|
|
|
110,914
|
|
||
Total current liabilities
|
2,002,248
|
|
|
1,771,439
|
|
||
|
|
|
|
||||
Long-term debt
|
3,985,631
|
|
|
3,256,870
|
|
||
Lease liabilities - noncurrent
|
362,570
|
|
|
358,281
|
|
||
Pension and postretirement benefits
|
374,052
|
|
|
403,458
|
|
||
Other noncurrent liabilities
|
309,139
|
|
|
327,343
|
|
||
Total liabilities
|
7,033,640
|
|
|
6,117,391
|
|
||
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock
|
3,481
|
|
|
3,624
|
|
||
Additional paid-in capital
|
302,522
|
|
|
304,395
|
|
||
Retained earnings
|
1,404,326
|
|
|
1,546,224
|
|
||
Accumulated other comprehensive loss
|
(631,009
|
)
|
|
(617,648
|
)
|
||
Total stockholders’ equity
|
1,079,320
|
|
|
1,236,595
|
|
||
Total liabilities and stockholders’ equity
|
$
|
8,112,960
|
|
|
$
|
7,353,986
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Operating Activities:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
161,181
|
|
|
$
|
149,555
|
|
|
$
|
153,307
|
|
|
$
|
230,643
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation
|
22,618
|
|
|
24,035
|
|
|
45,399
|
|
|
46,889
|
|
||||
Amortization of acquisition intangibles
|
6,086
|
|
|
6,247
|
|
|
12,199
|
|
|
12,537
|
|
||||
Other amortization
|
2,630
|
|
|
1,973
|
|
|
5,107
|
|
|
5,063
|
|
||||
Impairment of intangible assets
|
20,319
|
|
|
—
|
|
|
20,319
|
|
|
—
|
|
||||
Amortization of debt issuance costs
|
2,996
|
|
|
2,318
|
|
|
5,119
|
|
|
4,758
|
|
||||
Stock compensation expense
|
4,466
|
|
|
2,069
|
|
|
9,189
|
|
|
7,247
|
|
||||
Deferred taxes
|
(1,740
|
)
|
|
1,272
|
|
|
(2,201
|
)
|
|
(2,582
|
)
|
||||
Other
|
18,779
|
|
|
1,228
|
|
|
9,259
|
|
|
5,475
|
|
||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts receivable
|
(465,828
|
)
|
|
(75,167
|
)
|
|
(392,134
|
)
|
|
(137,445
|
)
|
||||
Inventories
|
25,376
|
|
|
12,893
|
|
|
(61,409
|
)
|
|
(165,512
|
)
|
||||
Other assets
|
(58,360
|
)
|
|
3,793
|
|
|
(31,570
|
)
|
|
(28,579
|
)
|
||||
Accounts payable
|
223,943
|
|
|
25,912
|
|
|
210,338
|
|
|
7,699
|
|
||||
Accrued pension and postretirement benefits
|
2,163
|
|
|
3,657
|
|
|
(19,318
|
)
|
|
(18,321
|
)
|
||||
Accrued liabilities and other
|
100,794
|
|
|
(22,857
|
)
|
|
18,603
|
|
|
(25,235
|
)
|
||||
Net cash from operating activities
|
65,423
|
|
|
136,928
|
|
|
(17,793
|
)
|
|
(57,363
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Investing Activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
(20,753
|
)
|
|
(33,016
|
)
|
|
(46,512
|
)
|
|
(58,285
|
)
|
||||
Proceeds from sales of assets
|
—
|
|
|
382
|
|
|
66
|
|
|
518
|
|
||||
Other
|
4,607
|
|
|
—
|
|
|
5,823
|
|
|
—
|
|
||||
Net cash from investing activities
|
(16,146
|
)
|
|
(32,634
|
)
|
|
(40,623
|
)
|
|
(57,767
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Financing Activities:
|
|
|
|
|
|
|
|
||||||||
Borrowings on notes payable
|
54,357
|
|
|
79,818
|
|
|
116,669
|
|
|
162,592
|
|
||||
Repayments on notes payable
|
(48,021
|
)
|
|
(80,944
|
)
|
|
(112,373
|
)
|
|
(163,703
|
)
|
||||
Borrowings on Accounts Receivable Securitization Facility
|
—
|
|
|
16,870
|
|
|
227,061
|
|
|
123,812
|
|
||||
Repayments on Accounts Receivable Securitization Facility
|
(152,152
|
)
|
|
(26,560
|
)
|
|
(227,061
|
)
|
|
(95,110
|
)
|
||||
Borrowings on Revolving Loan Facilities
|
—
|
|
|
830,000
|
|
|
1,638,000
|
|
|
1,602,500
|
|
||||
Repayments on Revolving Loan Facilities
|
(950,000
|
)
|
|
(742,000
|
)
|
|
(1,638,000
|
)
|
|
(1,422,500
|
)
|
||||
Borrowings on Senior Notes
|
700,000
|
|
|
—
|
|
|
700,000
|
|
|
—
|
|
||||
Repayments on Term Loan Facilities
|
—
|
|
|
(130,998
|
)
|
|
—
|
|
|
(141,623
|
)
|
||||
Borrowings on International Debt
|
—
|
|
|
—
|
|
|
31,222
|
|
|
7,141
|
|
||||
Repayments on International Debt
|
—
|
|
|
(27,941
|
)
|
|
—
|
|
|
(27,941
|
)
|
||||
Share repurchases
|
—
|
|
|
—
|
|
|
(200,269
|
)
|
|
—
|
|
||||
Cash dividends paid
|
(52,213
|
)
|
|
(54,228
|
)
|
|
(105,896
|
)
|
|
(108,449
|
)
|
||||
Payments of debt issuance costs
|
(14,602
|
)
|
|
(106
|
)
|
|
(14,834
|
)
|
|
(768
|
)
|
||||
Taxes paid related to net shares settlement of equity awards
|
(18
|
)
|
|
(251
|
)
|
|
(80
|
)
|
|
(1,157
|
)
|
||||
Other
|
453
|
|
|
412
|
|
|
879
|
|
|
985
|
|
||||
Net cash from financing activities
|
(462,196
|
)
|
|
(135,928
|
)
|
|
415,318
|
|
|
(64,221
|
)
|
||||
Effect of changes in foreign exchange rates on cash
|
12,392
|
|
|
2,178
|
|
|
(2,669
|
)
|
|
4,282
|
|
||||
Change in cash, cash equivalents and restricted cash
|
(400,527
|
)
|
|
(29,456
|
)
|
|
354,233
|
|
|
(175,069
|
)
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
1,084,683
|
|
|
310,119
|
|
|
329,923
|
|
|
455,732
|
|
||||
Cash, cash equivalents and restricted cash at end of period
|
684,156
|
|
|
280,663
|
|
|
684,156
|
|
|
280,663
|
|
||||
Less restricted cash at end of period
|
1,042
|
|
|
22,722
|
|
|
1,042
|
|
|
22,722
|
|
||||
Cash and cash equivalents per balance sheet at end of period
|
$
|
683,114
|
|
|
$
|
257,941
|
|
|
$
|
683,114
|
|
|
$
|
257,941
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Net sales, as reported under GAAP
|
$
|
1,738,779
|
|
|
$
|
1,760,927
|
|
|
$
|
3,055,241
|
|
|
$
|
3,348,951
|
|
Net sales from exited programs
|
—
|
|
|
(118,710
|
)
|
|
—
|
|
|
(212,814
|
)
|
||||
Net sales, rebased
|
$
|
1,738,779
|
|
|
$
|
1,642,217
|
|
|
$
|
3,055,241
|
|
|
$
|
3,136,137
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit, as reported under GAAP
|
$
|
633,012
|
|
|
$
|
675,523
|
|
|
$
|
1,106,744
|
|
|
$
|
1,295,554
|
|
Restructuring and other action-related charges
|
26,534
|
|
|
12,598
|
|
|
48,347
|
|
|
30,290
|
|
||||
Gross profit on exited programs
|
—
|
|
|
(35,169
|
)
|
|
—
|
|
|
(65,057
|
)
|
||||
Adjusted gross profit, rebased
|
$
|
659,546
|
|
|
$
|
652,952
|
|
|
$
|
1,155,091
|
|
|
$
|
1,260,787
|
|
As a % of net sales, rebased
|
37.9
|
%
|
|
39.8
|
%
|
|
37.8
|
%
|
|
40.2
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses, as reported under GAAP
|
$
|
391,476
|
|
|
$
|
445,923
|
|
|
$
|
831,078
|
|
|
$
|
916,310
|
|
Restructuring and other action-related charges
|
(36,762
|
)
|
|
(11
|
)
|
|
(44,148
|
)
|
|
(3,692
|
)
|
||||
Selling, general and administrative expenses related to exited programs
|
—
|
|
|
(9,712
|
)
|
|
—
|
|
|
(18,677
|
)
|
||||
Adjusted selling, general and administrative expenses, rebased
|
$
|
354,714
|
|
|
$
|
436,200
|
|
|
$
|
786,930
|
|
|
$
|
893,941
|
|
As a % of net sales, rebased
|
20.4
|
%
|
|
26.6
|
%
|
|
25.8
|
%
|
|
28.5
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating profit, as reported under GAAP
|
$
|
241,536
|
|
|
$
|
229,600
|
|
|
$
|
275,666
|
|
|
$
|
379,244
|
|
Restructuring and other action-related charges included in gross profit
|
26,534
|
|
|
12,598
|
|
|
48,347
|
|
|
30,290
|
|
||||
Restructuring and other action-related charges included in SG&A
|
36,762
|
|
|
11
|
|
|
44,148
|
|
|
3,692
|
|
||||
Gross profit on exited programs
|
—
|
|
|
(35,169
|
)
|
|
—
|
|
|
(65,057
|
)
|
||||
Selling, general and administrative expenses related to exited programs
|
—
|
|
|
9,712
|
|
|
—
|
|
|
18,677
|
|
||||
Adjusted operating profit, rebased
|
$
|
304,832
|
|
|
$
|
216,752
|
|
|
$
|
368,161
|
|
|
$
|
366,846
|
|
As a % of net sales, rebased
|
17.5
|
%
|
|
13.2
|
%
|
|
12.1
|
%
|
|
11.7
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income, as reported under GAAP
|
$
|
161,181
|
|
|
$
|
149,555
|
|
|
$
|
153,307
|
|
|
$
|
230,643
|
|
Restructuring and other action-related charges included in gross profit
|
26,534
|
|
|
12,598
|
|
|
48,347
|
|
|
30,290
|
|
||||
Restructuring and other action-related charges included in SG&A
|
36,762
|
|
|
11
|
|
|
44,148
|
|
|
3,692
|
|
||||
Gross profit on exited programs
|
—
|
|
|
(35,169
|
)
|
|
—
|
|
|
(65,057
|
)
|
||||
Selling, general and administrative expenses related to exited programs
|
—
|
|
|
9,712
|
|
|
—
|
|
|
18,677
|
|
||||
Tax effect on actions
|
(12,415
|
)
|
|
1,812
|
|
|
(16,649
|
)
|
|
1,749
|
|
||||
Adjusted net income, rebased
|
$
|
212,062
|
|
|
$
|
138,519
|
|
|
$
|
229,153
|
|
|
$
|
219,994
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share, as reported under GAAP
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
$
|
0.43
|
|
|
$
|
0.63
|
|
Restructuring and other action-related charges
|
0.15
|
|
|
0.03
|
|
|
0.21
|
|
|
0.08
|
|
||||
Exited programs
|
—
|
|
|
(0.06
|
)
|
|
—
|
|
|
(0.11
|
)
|
||||
Adjusted diluted earnings per share, rebased
|
$
|
0.60
|
|
|
$
|
0.38
|
|
|
$
|
0.65
|
|
|
$
|
0.60
|
|
|
Quarter Ended June 29, 2019
|
||||||||||||||||||
|
As Reported
|
|
Less: Exited Programs
|
|
Adjusted for Exited Programs
|
|
Less: Restructuring and other action-related charges
|
|
Rebased
|
||||||||||
Segment net sales:
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
678,604
|
|
|
$
|
21,127
|
|
|
$
|
657,477
|
|
|
$
|
—
|
|
|
$
|
657,477
|
|
Activewear
|
448,277
|
|
|
97,583
|
|
|
350,694
|
|
|
—
|
|
|
350,694
|
|
|||||
International
|
568,863
|
|
|
—
|
|
|
568,863
|
|
|
—
|
|
|
568,863
|
|
|||||
Other
|
65,183
|
|
|
—
|
|
|
65,183
|
|
|
—
|
|
|
65,183
|
|
|||||
Total net sales
|
$
|
1,760,927
|
|
|
$
|
118,710
|
|
|
$
|
1,642,217
|
|
|
$
|
—
|
|
|
$
|
1,642,217
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
149,530
|
|
|
$
|
2,533
|
|
|
$
|
146,997
|
|
|
$
|
—
|
|
|
$
|
146,997
|
|
Activewear
|
68,779
|
|
|
22,924
|
|
|
45,855
|
|
|
—
|
|
|
45,855
|
|
|||||
International
|
81,078
|
|
|
—
|
|
|
81,078
|
|
|
—
|
|
|
81,078
|
|
|||||
Other
|
6,032
|
|
|
—
|
|
|
6,032
|
|
|
—
|
|
|
6,032
|
|
|||||
General corporate expenses/other
|
(63,210
|
)
|
|
—
|
|
|
(63,210
|
)
|
|
—
|
|
|
(63,210
|
)
|
|||||
Restructuring and other action-related charges
|
(12,609
|
)
|
|
—
|
|
|
(12,609
|
)
|
|
(12,609
|
)
|
|
—
|
|
|||||
Total operating profit
|
$
|
229,600
|
|
|
$
|
25,457
|
|
|
$
|
204,143
|
|
|
$
|
(12,609
|
)
|
|
$
|
216,752
|
|
|
Six Months Ended June 29, 2019
|
||||||||||||||||||
|
As Reported
|
|
Less: Exited Programs
|
|
Adjusted for Exited Programs
|
|
Less: Restructuring and other action-related charges
|
|
Rebased
|
||||||||||
Segment net sales:
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
1,154,549
|
|
|
$
|
30,658
|
|
|
$
|
1,123,891
|
|
|
$
|
—
|
|
|
$
|
1,123,891
|
|
Activewear
|
853,617
|
|
|
182,156
|
|
|
671,461
|
|
|
—
|
|
|
671,461
|
|
|||||
International
|
1,215,043
|
|
|
—
|
|
|
1,215,043
|
|
|
—
|
|
|
1,215,043
|
|
|||||
Other
|
125,742
|
|
|
—
|
|
|
125,742
|
|
|
—
|
|
|
125,742
|
|
|||||
Total net sales
|
$
|
3,348,951
|
|
|
$
|
212,814
|
|
|
$
|
3,136,137
|
|
|
$
|
—
|
|
|
$
|
3,136,137
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating profit:
|
|
|
|
|
|
|
|
|
|
||||||||||
Innerwear
|
$
|
254,156
|
|
|
$
|
4,033
|
|
|
$
|
250,123
|
|
|
$
|
—
|
|
|
$
|
250,123
|
|
Activewear
|
112,372
|
|
|
42,347
|
|
|
70,025
|
|
|
—
|
|
|
70,025
|
|
|||||
International
|
180,851
|
|
|
—
|
|
|
180,851
|
|
|
—
|
|
|
180,851
|
|
|||||
Other
|
6,786
|
|
|
—
|
|
|
6,786
|
|
|
—
|
|
|
6,786
|
|
|||||
General corporate expenses/other
|
(140,939
|
)
|
|
—
|
|
|
(140,939
|
)
|
|
—
|
|
|
(140,939
|
)
|
|||||
Restructuring and other action-related charges
|
(33,982
|
)
|
|
—
|
|
|
(33,982
|
)
|
|
(33,982
|
)
|
|
—
|
|
|||||
Total operating profit
|
$
|
379,244
|
|
|
$
|
46,380
|
|
|
$
|
332,864
|
|
|
$
|
(33,982
|
)
|
|
$
|
366,846
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Restructuring and other action-related charges by category:
|
|
|
|
|
|
|
|
||||||||
Supply chain actions - 2019
|
$
|
1,896
|
|
|
$
|
12,598
|
|
|
$
|
5,698
|
|
|
$
|
30,290
|
|
Supply chain actions - 2020
|
3,241
|
|
|
—
|
|
|
13,504
|
|
|
—
|
|
||||
Program exit costs
|
1,285
|
|
|
—
|
|
|
9,500
|
|
|
—
|
|
||||
Other restructuring costs
|
4,695
|
|
|
11
|
|
|
11,614
|
|
|
3,692
|
|
||||
COVID-19 related charges:
|
|
|
|
|
|
|
|
||||||||
Bad debt
|
11,375
|
|
|
—
|
|
|
11,375
|
|
|
—
|
|
||||
Inventory
|
20,485
|
|
|
—
|
|
|
20,485
|
|
|
—
|
|
||||
Intangible assets
|
20,319
|
|
|
—
|
|
|
20,319
|
|
|
—
|
|
||||
Tax effect on actions
|
(12,415
|
)
|
|
(1,778
|
)
|
|
(16,649
|
)
|
|
(4,791
|
)
|
||||
Total restructuring and other action-related charges
|
$
|
50,881
|
|
|
$
|
10,831
|
|
|
$
|
75,846
|
|
|
$
|
29,191
|
|
|
Last Twelve Months
|
||||||
|
June 27,
2020 |
|
June 29,
2019 |
||||
EBITDA1:
|
|
|
|
||||
Net income
|
$
|
523,384
|
|
|
$
|
551,480
|
|
Interest expense, net
|
162,506
|
|
|
195,063
|
|
||
Income tax expense
|
72,998
|
|
|
103,117
|
|
||
Depreciation and amortization
|
129,183
|
|
|
130,792
|
|
||
Total EBITDA
|
888,071
|
|
|
980,452
|
|
||
Total restructuring and other action-related charges (excluding tax effect on actions)
|
121,999
|
|
|
69,398
|
|
||
Stock compensation expense
|
11,219
|
|
|
25,630
|
|
||
Total EBITDA, as adjusted
|
$
|
1,021,289
|
|
|
$
|
1,075,480
|
|
|
|
|
|
||||
Net debt:
|
|
|
|
||||
Debt (current and long-term debt and Accounts Receivable Securitization Facility)
|
$
|
4,098,143
|
|
|
$
|
4,017,566
|
|
Notes payable
|
8,803
|
|
|
4,695
|
|
||
(Less) Cash and cash equivalents
|
(683,114
|
)
|
|
(257,941
|
)
|
||
Net debt
|
$
|
3,423,832
|
|
|
$
|
3,764,320
|
|
|
|
|
|
||||
Net debt/EBITDA, as adjusted
|
3.4
|
|
|
3.5
|
|
1
|
Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Free cash flow:
|
|
|
|
|
|
|
|
||||||||
Net cash from operating activities
|
$
|
65,423
|
|
|
$
|
136,928
|
|
|
$
|
(17,793
|
)
|
|
$
|
(57,363
|
)
|
Capital expenditures
|
(20,753
|
)
|
|
(33,016
|
)
|
|
(46,512
|
)
|
|
(58,285
|
)
|
||||
Free cash flow
|
$
|
44,670
|
|
|
$
|
103,912
|
|
|
$
|
(64,305
|
)
|
|
$
|
(115,648
|
)
|