WINSTON-SALEM, N.C. — Underwear maker Hanesbrands Inc. said Tuesday its second-quarter net income rose sharply as cotton costs eased from a year ago.
Hanesbrands’s earnings topped Wall Street expectation and the company also raised its earnings outlook. Shares rose nearly 3 percent in aftermarket trading.
The company, whose brands include Hanes, Champion, Playtex and Wonderbra, agreed last week to acquire bra-maker Maidenform for about $547.6 million.
For the three months ended June 29, net income rose to $121.6 million, or $1.19 per share. That compares with $1.2 million, or 1 cent per share, a year earlier. Adjusted for discontinued operations, net income from a year ago would have been 67 cents per share. Analysts expected net income of 92 cents per share.
Revenue edged up less than 2 percent to $1.19 billion, from $1.18 billion last year. Analysts expect revenue of $1.21 billion.
The company said sales reflect a “soft retail sales environment.”
But Winston-Salem, N.C.-based Hanesbrands raised its earnings projection for the year to $3.50 to $3.65 per share from a prior range of $3.25 to $3.40. Analysts expect $3.44 per share.
The company expects revenue of $4.55 billion, down slightly from higher prior guidance of $4.6 billion. Analysts had expected $4.6 billion.
Shares rose $1.64, or 2.8 percent, to $61.10 in aftermarket trading, after closing the day down 33 cents at $59.46.