Hanesbrands Inc
(336) 519-4400
news
release
FOR IMMEDIATE RELEASE
News Media,
contact: Matt
Hall, (336) 519-3386
Analysts and
Investors, contact:
HANESBRANDS INC. ANNOUNCES THAT IMPACT OF MERVYN’S LLC LIQUIDATION PLANS DISCLOSED OCT. 17, 2008, WILL BE INCLUDED IN THIRD QUARTER 2008 RESULTS
WINSTON-SALEM, N.C. (Oct. 24, 2008) – Hanesbrands Inc. (NYSE: HBI) today announced that the impact of the Oct. 17, 2008, liquidation disclosure by Mervyn’s LLC and its affiliated entities, which occurred after Hanesbrands’ third quarter ended, will be included in the company’s third-quarter results as a material subsequent event. As planned, Hanesbrands intends to report full third-quarter results at the end of trading on the New York Stock Exchange on Oct. 29, 2008.
Mervyn’s, a regional retailer in
With the subsequent-event impact, Hanesbrands now expects pretax charges related to the Mervyn’s bankruptcy to be $5.5 million, or $0.04 per diluted share after tax, for the quarter ended Sept. 27, 2008.
Excluding actions and the impact of the Mervyn’s bankruptcy, Hanesbrands anticipates reporting non-GAAP earnings per diluted share of $0.56, up $0.08 from the third quarter a year ago. On a GAAP basis, Hanesbrands expects to report diluted EPS of $0.17 (which includes $0.35 of restructuring and related charges and $0.04 for the Mervyn’s bankruptcy).
(Diluted EPS excluding
actions is a non-GAAP measure used to better assess underlying business
performance because it excludes the effect of unusual actions that are not
directly related to operations. The
unusual actions in the current quarter were restructuring and related charges
and the tax effect on these items.)
Hanesbrands Inc. Announces That Impact of Mervyn’s
LLC Liquidation Plans Disclosed Oct. 17, 2008, Will be Included in Third
Quarter 2008 Results – Page 2
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are
not statements of historical fact are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including those regarding our launch as an independent
company and the benefits expected from that launch, our long-term goals, and trends associated with our
business. These
forward-looking statements are made only as of
the date of this press release and are based on our current intent, beliefs,
plans and expectations. They involve risks and uncertainties that could cause actual
future results, performance or developments to differ materially from those
described in or implied by such forward-looking statements. These risks and uncertainties include the following:
our ability to migrate our production and
manufacturing operations to lower-cost countries around the world; our ability
to effectively implement other components of our business strategy; costs and
adverse publicity from violations of labor or environmental laws by us or our
suppliers; our ability to successfully manage adverse changes in social,
political, economic, legal and other conditions affecting our foreign
operations; retailer consolidation and other changes in the apparel essentials
industry; our ability to keep pace with changing consumer preferences; loss of
or reduction in sales to, or financial difficulties experienced by, any of our
top customers or groups of customers; fluctuations in the price or availability
of cotton, oil or labor; inflationary pressure on consumer demand; our debt and
debt-service requirements that restrict our operating and financial flexibility
and impose interest and financing costs; and other risks identified from time
to time in our most recent Securities and Exchange Commission reports,
including the 2007 Annual Report on Form 10-K, 2008 quarterly reports on Form
10-Q and current reports on Form 8-K, registration statements, press releases
and other communications. The company
undertakes no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operating results over time.
Hanesbrands
Inc.
Hanesbrands Inc. is a leading marketer of
innerwear, outerwear and hosiery apparel under strong consumer brands,
including Hanes, Champion, Playtex, Bali, Just My Size,
barely there and Wonderbra. The company designs, manufactures, sources and
sells T-shirts, bras, panties, men’s underwear,
children’s underwear, socks, hosiery, casualwear and activewear. Hanesbrands
has approximately 50,000 employees in more than 25 countries. More information may be found on the
company’s Web site at www.hanesbrands.com.
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