The stock (HBI) is down about 25% from 12 month highs due to genuine concerns about competition from private brands. But at current levels (2018f PE 9.0) it looks attractive with management delivering on goals.
Recent Q3 results reported sales up 3% with struggling Innerwear sales more than offset by fast growing International and Activewear. Gross and operating margins increased year on year.
The company was hit by a $14 million right off of Sears debt but excluding this, year end guidance was unchanged.
Looking to next year the company didnt provide guidance but pointed to a number of positives including;
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a range of innovative new intimates and shapewear products that have been well received and are to be rolled out H1 2019 and
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to price increases and increased shelf space that have already been agreed with retailers and to be rolled out in February.
This is not a recommendation to buy. Stocks are not suitable for everyone. Please do your own research.
Submitted November 24, 2018 at 03:19AM by InterestingNews1 https://ift.tt/2KtzxYs
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