2024-02-22 17:45:10 ET
Summary
- Hanesbrands has experienced a significant decline in stock performance, with shares falling over 40% since September 2022.
- The main cause of the decline is the poor performance of the Global Champion brand, which saw sales decline 23% YoY in Q4/2023.
- However, there is potential for value in Hanesbrands if management can execute the sale of Champion and reduce debt.
There is a common saying that the best businesses are so simple, even an idiot can run them. I believe Hanesbrands' innerwear business is one such business, with recession resistant demand and operating profits. However, Hanesbrands' value may be obscured by the troubled activewear segment, which appears to be shrinking at an alarming rate and losing money....
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Hanesbrands: Speculative Buy On Innerwear Business Turnaround