HBI - What Hanesbrands Inc. Could Look Like With And Without Champion
2024-03-21 13:46:22 ET
Summary
- It is looking like HBI might turn around the business operations of its Champion brand due to a rather expensive "Champion performance enhancement plan".
- Management has also announced it is looking into the possibility of selling off Champion.
- Both scenarios would help HBI pay down its outstanding debt, reduce its interest payments, and help the company achieve profitability once more.
I am placing a BUY rating on Hanesbrands Inc. ( HBI ) primarily because it is looking evermore likely that HBI might turn around the business operations of its Champion brand due to a rather expensive " Champion performance enhancement plan ". If HBI can successfully turn Champion around and stop spending hundreds of millions of dollars in a revitalization program for the brand it would likely steer HBI into profitability. Hanes gave a time frame of 2024's fall/winter season to begin to see the full results of this turn around. If Hanes can pull this off and get the company back on track to just a 2.0% year over year revenue growth I believe you would be looking at a value per share of approximately $6.79....
What Hanesbrands Inc. Could Look Like With And Without Champion