Business Wire | Aug 5, 2021 06:00AM EDT

HanesBrands Announces Strong Second-Quarter 2021 Results

Aug. 05, 2021

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Aug. 05, 2021--HanesBrands Inc. (NYSE: HBI), a global leader in iconic apparel brands, today announced results for the second quarter of 2021, with increased sales, operating profit and cash flow driven by strong performance across its global innerwear and activewear businesses.

Net sales from continuing operations for the second quarter ended July 3, 2021, totaled $1.75 billion, an increase of $208 million, or 13%, compared with $1.54 billion for the quarter ended June 27, 2020, which included $614 million in sales of personal protective equipment ("PPE") in response to the COVID-19 pandemic. Excluding PPE, net sales increased 88% over prior year. The growth was driven by strong point-of-sales trends, the overlap of last year's COVID-related shutdowns and the benefit of transitory items such as government stimulus. Total constant currency second-quarter net sales increased 10%.

"Our iconic brands continue to resonate with consumers around the world, and I'm very encouraged by the progress on our Full Potential growth plan," said Chief Executive Officer Steve Bratspies. "I'm extremely proud of the way our associates performed under challenging conditions, delivering sales, profit and earnings growth above our expectations and above the second quarter of both 2020 and 2019. We are seeing strong momentum across our business and have raised our outlook for the second half of the year."

Due to the significant impact of the pandemic on prior year results, this release includes certain comparisons to the comparable 2019 periods for additional context. All 2019 results are rebased to reflect the European Innerwear business as discontinued operations as well as the exit of the C9 Champion mass program and the DKNY intimate apparel license.

Compared to second-quarter 2019, net sales from continuing operations increased $233 million, or 15%, and total constant currency net sales increased 14%. Double-digit growth in the global innerwear and activewear businesses was driven by strong point-of-sale performance as well as the benefit of several transitory items, including retailer inventory restocking, government stimulus and pent-up consumer demand.

For the second-quarter 2021, GAAP gross margin of 38.9% increased 560 basis points compared to prior year and 200 basis points compared to second-quarter 2019. Adjusted gross margin of 39.0% increased 450 basis points over last year and approximately 75 basis points over 2019. The expansion in both periods was driven by higher sales, product mix and the impact from foreign exchange rates, which more than offset higher expedite costs that resulted from stronger-than-expected demand.

Second-quarter GAAP operating profit increased 8% to $217 million compared to prior year and decreased 1% compared to second-quarter 2019. GAAP operating margin of 12.4% decreased 70 basis points and 100 basis points compared to the second quarter of 2020 and 2019, respectively. Adjusted operating profit of $236 million increased $2 million, or 1%, compared to prior year and $29 million, or 14% compared to 2019. Adjusted operating margin of 13.5% decreased 170 basis points compared to last year due to the overlap of last year's PPE sales and temporary cost savings initiatives that were implemented to partially mitigate the impact of COVID-driven declines in apparel sales.

In the second quarter of 2020, the company implemented several temporary SG&A cost savings initiatives such as furloughs and salary reductions, which generated approximately 600 basis points of one-time operating margin benefit in the year-ago quarter. As compared to second-quarter 2019, adjusted operating margin decreased approximately 15 basis points as higher brand marketing investments essentially offset the fixed-cost leverage from higher sales.

The GAAP and adjusted effective tax rates for the second quarter were 14.6% and 14.2%, respectively, which compares to GAAP and adjusted effective tax rates of 12.7% and 14.1%, respectively, for the second quarter of 2020. For the second quarter of 2019, GAAP and adjusted effective tax rates were 9.4% and 9.0%, respectively.

On a GAAP basis, second-quarter income from continuing operations totaled $148 million, or $0.42 per diluted share. This compares to income from continuing operations of $137 million, or $0.39 per diluted share in the prior year period, and income from continuing operations of $150 million, or $0.41 per diluted share in second-quarter 2019.

Adjusted income from continuing operations totaled $165 million, or $0.47 per diluted share. This compares to adjusted income from continuing operations of $162 million, or $0.46 per diluted share, in the prior year period and adjusted income from continuing operations of $139 million, or $0.38 per diluted share, in second-quarter 2019.

(See the Note on Adjusted Measures and Reconciliation to GAAP Measures later in this news release for additional discussion and details of actions, which include pandemic-related and Full Potential plan charges.)

Second-Quarter 2021 Business Segment Summaries

Innerwear (vs 2020). Sales decreased $314 million, or 29% due to the overlap of last year's $614 million of PPE sales. Basics revenue increased 48% with double-digit growth in each product category while intimates revenue increased 150% with triple-digit growth in both bras and shapewear. Excluding PPE, Innerwear sales increased 62% over last year driven by strong point-of-sale growth, the overlap of last year's COVID-related shutdowns as well as the benefit of several transitory items, including retailer inventory restocking, government stimulus and pent-up consumer demand. Operating margin of 23.8% decreased 400 basis points compared to prior year due to fixed-cost deleverage from lower sales, higher expedite costs from stronger-than-expected demand in basics and intimates as well as increased investments in brand marketing.

(vs 2019). Sales increased $123 million, or 19%, compared to second-quarter 2019, with comparable double-digit growth in both basics and intimates. The growth was driven by strong underlying point-of-sale growth, yielding approximately 160 basis points of market share gains, as well as the benefit of certain transitory items, such as retailer inventory restocking and government stimulus, which drove category growth rates above historical levels. Operating margin expanded 150 basis points to 23.8% driven by volume leverage and sales mix, which more than offset higher expedite costs and increased investments in brand marketing.

Activewear (vs 2020). Activewear sales grew $236 million, or 140% over prior year driven by growth in both the Champion and Hanes brands. The company experienced strong point-of-sale trends across several channels in the quarter. Sales also increased in the sports and college licensing business. The segment benefited from strong pent-up consumer demand as pandemic restrictions were lifted, as well as from government stimulus payments. Segment operating margin of 10.2% increased 1,360 basis points over prior period driven by fixed-cost leverage from higher sales, which more than offset higher brand marketing investment.

(vs 2019). Activewear revenue increased $53 million, or 15%, driven by growth across the online, wholesale and distributor channels, which more than offset lower sales in the sports and college licensing business. By brand, sales increased in both the Champion and Hanes brands in the quarter, with Champion sales in the segment up 20%. Activewear's operating margin decreased approximately 290 basis points compared to second-quarter 2019 as leverage from higher sales volume was more than offset by higher expedite and distribution costs due to stronger-than-expected demand as well as increased investments in brand marketing.

International (vs 2020). International segment revenue increased $228 million, or 91%, compared to prior year. On a constant currency basis, sales increased 70% with strong growth in Australia, the Americas, Europe and Asia Pacific driven by strong consumer demand and the overlap of last year's COVID-related shutdowns. For the quarter, the International segment's operating margin of 12.9% increased 1,090 basis points over prior year driven by higher sales, sales mix and foreign exchange rates.

(vs 2019). International segment revenue increased $48 million, or 11%, compared to second-quarter 2019. On a constant currency basis, sales increased 5%. Constant currency sales grew in Australia, Europe and the Americas while sales in Asia Pacific declined driven by ongoing COVID-related headwinds in Japan. For the quarter, the International segment's operating margin decreased 250 basis points compared to second-quarter 2019 levels driven by increased brand marketing investments as well as de-leverage in Asia Pacific from lower sales.

Third-Quarter, Fourth-Quarter and Full-Year 2021 Financial Outlook

The following financial outlook is based on current market conditions and judgments of management and is subject to risks and uncertainties that may cause actual results to differ materially, many of which are further discussed in the company's most recent annual report on Form 10-K available at www.sec.gov and in the investors section of the company's website at www.Hanes.com/Investors.

For third-quarter 2021, which ends on October 2, 2021, the company currently expects:

* Net sales from continuing operations of approximately $1.78 billion to $1.81 billion, which represents approximately 6% growth over prior year at the midpoint and includes a projected benefit of approximately $16 million from changes in foreign currency exchange rates. This compares to net sales of $1.69 billion in third-quarter 2020, which included $179 million in PPE sales. * Excluding PPE, net sales at the midpoint of the guidance range are expected to increase 19% over the prior year period. * As compared to rebased third-quarter 2019, net sales at the midpoint are expected to increase 11%. * GAAP operating profit from continuing operations to range from approximately $216 million to $226 million. * Adjusted operating profit from continuing operations to range from approximately $235 million to $245 million. The midpoint of adjusted operating profit implies an operating margin of approximately 13.4% and reflects the impact of cost inflation as well as increased brand investment. This compares to an adjusted operating margin of 14.3% in the third-quarter of 2020, which benefited from temporary COVID-driven cost reductions. * Charges for actions related to Full Potential of approximately $19 million. * Interest and Other expenses of approximately $45 million. * An effective tax rate of approximately 12% on a GAAP basis and approximately 15% on an adjusted basis. * GAAP earnings per share from continuing operations to range from $0.42 to $0.45. Adjusted earnings per share from continuing operations to range from $0.45 to $0.48.

For fourth-quarter 2021, which ends on January 1, 2022, the company currently expects:

* Net sales from continuing operations of approximately $1.71 billion to $1.78 billion, which represents approximately 3% growth over prior year at the midpoint and includes a projected benefit of approximately $6 million from changes in foreign currency exchange rates. This compares to net sales of $1.69 billion in fourth-quarter 2020, which included $28 million in PPE sales and approximately $45 million from the 53rd week. * Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 8% over the prior year period. * As compared to rebased fourth-quarter 2019, net sales at the midpoint are expected to increase 15%. * GAAP operating profit from continuing operations to range from approximately $172 million to $192 million. * Adjusted operating profit from continuing operations to range from approximately $200 million to $220 million. The midpoint of adjusted operating profit implies an operating margin of approximately 12.0% and reflects the impact of cost inflation as well as increased brand investment. This compares to an adjusted operating margin of 13.5% in the fourth-quarter of 2020. * Charges for actions related to Full Potential of approximately $28 million. * Interest and Other expenses of approximately $46 million. * An effective tax rate of approximately 15% on a GAAP and adjusted basis. * GAAP earnings per share from continuing operations to range from $0.29 to $0.34. Adjusted earnings per share from continuing operations to range from $0.37 to $0.42.

For fiscal-year 2021, which ends on January 1, 2022, the company currently expects:

* Net sales from continuing operations to total approximately $6.75 billion to $6.85 billion, which is $550 million above its prior range of $6.2 billion to $6.3 billion, and includes a projected benefit of approximately $116 million from changes in foreign currency exchange rates. * At the midpoint, net sales guidance implies approximately 11% growth over prior year and 12% growth adjusted for the 53rd week in 2020. This compares to net sales of $6.13 billion in 2020, which included $820 million in sales of PPE and approximately $45 million from the 53rd week. * Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 29% over the prior year period. * As compared to rebased 2019, net sales at the midpoint are expected to increase 13%. * GAAP operating profit from continuing operations to range from approximately $795 million to $825 million, versus the prior range of $730 million to $760 million. * Adjusted operating profit from continuing operations to range from approximately $880 million to $910 million, which is $65 million above its prior range of $815 million to $845 million. At the midpoint, adjusted operating profit guidance implies approximately 15% growth compared to prior year and 9% growth compared to 2019. The midpoint of adjusted operating profit guidance range suggests an operating margin of 13.2%. * Full-year outlook reflects higher levels of cost inflation as compared to 2020 and 2019. Incremental brand marketing investment of $50 million as compared to 2020. * Charges for actions related to Full Potential of approximately $85 million, which is unchanged from its prior outlook. * Interest and Other expenses of approximately $182 million. * An effective tax rate of approximately 13% on a GAAP basis and approximately 15% on an adjusted basis. * GAAP earnings per share from continuing operations to range from approximately $1.50 to $1.58. * Adjusted earnings per share from continuing operations to range from approximately $1.68 to $1.76, which compares to its prior outlook of $1.51 to $1.59. * Cash flow from operations of approximately $550 million, versus prior range of $500 million to $550 million. * Capital expenditures of approximately $100 million.

HanesBrands has updated its quarterly frequently-asked-questions document, which is available at www.Hanes.com/FAQ.

Note on Adjusted Measures and Reconciliation to GAAP Measures

To supplement financial results prepared in accordance with generally accepted accounting principles, the company provides quarterly and full-year results concerning certain non?GAAP financial measures, including adjusted EPS from continuing operations, adjusted income from continuing operations, adjusted income tax expense, adjusted income from continuing operations before income tax expense, adjusted operating profit (and margin), adjusted SG&A, adjusted gross profit (and margin), EBITDA and adjusted EBITDA.

Adjusted EPS from continuing operations is defined as diluted EPS from continuing operations excluding actions and the tax effect on actions. Adjusted income from continuing operations is defined as income from continuing operations excluding actions and the tax effect on actions. Adjusted income tax expense is defined as income tax expense excluding actions. Adjusted income from continuing operations before income tax is defined as income from continuing operations before income tax excluding actions. Adjusted operating profit is defined as operating profit excluding actions. Adjusted SG&A is defined as selling, general and administrative expenses excluding actions. Adjusted gross profit is defined as gross profit excluding actions.

Charges for actions taken in 2021 include professional fees and intangible asset impairment charges related to our Full Potential plan. While these costs are not operational in nature and are not expected to continue for any singular transaction on an ongoing basis, similar types of costs, expenses and charges have occurred in prior periods and may recur in future periods depending upon future business plans and circumstances.

Charges for actions taken in 2020 include supply chain restructuring actions, program exit costs, COVID-19 related charges, Full Potential plan charges and the write-off of a discrete tax asset related to our Bras N Things acquisition. COVID-19 related charges include intangible asset and goodwill impairment charges, bad debt expense and supply chain re-startup costs. Full Potential plan charges for 2020 include inventory write-down charges related to our SKU reduction initiative and discontinuation of our PPE business.

Charges for actions taken in 2019 primarily represented supply chain network changes, program exit costs, and overhead reduction as well as completion of outstanding acquisition integration.

HanesBrands has chosen to present these non?GAAP measures to investors to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating operations absent the effect of the Full Potential plan and other actions, as well as the COVID-19 pandemic. HanesBrands believes these non-GAAP measures provide management and investors with valuable supplemental information for analyzing the operating performance of the company's ongoing business during each period presented without giving effect to costs associated with the execution of any of the aforementioned actions taken.

The company has also chosen to present EBITDA and adjusted EBITDA to investors because it considers these measures to be an important supplemental means of evaluating operating performance. EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding actions and stock compensation expense. HanesBrands believes that EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, and management uses EBITDA and adjusted EBITDA for planning purposes in connection with setting its capital allocation strategy. EBITDA and adjusted EBITDA should not, however, be considered as measures of discretionary cash available to invest in the growth of the business.

In addition, the company has chosen to present certain year-over-year comparisons with respect to the company's rebased 2019 business, which excludes the exited C9 Champion program and DKNY license. HanesBrands believes this information is useful to management and investors to facilitate a more meaningful comparison of the results of the company's ongoing business.

HanesBrands is a global company that reports financial information in U.S. dollars in accordance with GAAP. As a supplement to the company's reported operating results, HanesBrands also presents constant-currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. The company uses constant-currency information to provide a framework to assess how the business performed excluding the effects of changes in the rates used to calculate foreign currency translation.

To calculate foreign currency translation on a constant currency basis, operating results for the current-year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

HanesBrands believes constant-currency information is useful to management and investors to facilitate comparison of operating results and better identify trends in the company's businesses.

Non?GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to, or substitute for, financial results prepared in accordance with GAAP. Further, the non-GAAP measures presented may be different from non-GAAP measures with similar or identical names presented by other companies.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are presented in the supplemental financial information included with this news release.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain forward-looking statements, as defined under U.S. federal securities laws, with respect to our long-term goals and trends associated with our business, as well as guidance as to future performance. In particular, among others, statements regarding the potential impact of the COVID-19 pandemic on our business and financial performance; guidance and predictions regarding expected operating results, including related to our Full Potential plan; and statements made in the Third Quarter and Full-year 2021 Financial Outlook section of this news release, are forward-looking statements. These forward-looking statements are based on our current intent, beliefs, plans and expectations. Readers are cautioned not to place any undue reliance on any forward-looking statements. Forward-looking statements necessarily involve risks and uncertainties, many of which are outside of our control, that could cause actual results to differ materially from such statements and from our historical results and experience. These risks and uncertainties include such things as: our ability to successfully executive our Full Potential plan to achieve the desired results; the potential effects of the COVID-19 pandemic, including on consumer spending, global supply chains and the financial markets; the highly competitive and evolving nature of the industry in which we compete; the rapidly changing retail environment; our reliance on a relatively small number of customers for a significant portion of our sales; any inadequacy, interruption, integration failure or security failure with respect to our information technology; the impact of significant fluctuations and volatility in various input costs, such as cotton and oil-related materials, utilities, freight and wages; our ability to attract and retain a senior management team with the core competencies needed to support growth in global markets; significant fluctuations in foreign exchange rates; legal, regulatory, political and economic risks related to our international operations; our ability to effectively manage our complex multinational tax structure; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward- looking statement speaks only as of the date on which such statement is made, and HanesBrands undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.

HanesBrands

HanesBrands (NYSE: HBI) makes everyday apparel that is known and loved by consumers around the world for comfort, quality and value. Among the company's iconic brands are Hanes, the leading basic apparel brand in the United States; Champion, an innovator at the intersection of lifestyle and athletic apparel; and Bonds, which is setting new standards for design and sustainability. HBI employs 61,000 associates in 47 countries and has built a strong reputation for workplace quality and ethical business practices. The company, a longtime leader in sustainability, launched aggressive 2030 goals to improve the lives of people, protect the planet and produce sustainable products. HBI is building on its unmatched strengths to unlock its #FullPotential and deliver long-term growth that benefits all of its stakeholders.

TABLE 1

HANESBRANDS INC.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

Quarters Ended Six Months Ended

July 3, June 27, % July 3, June 27, % 2021 2020 Change 2021 2020 Change

Net sales $ 1,751,311 $ 1,543,083 13.5 % $ 3,259,340 $ 2,746,153 18.7 %

Cost of sales 1,069,682 1,029,221 1,975,030 1,814,123

Gross profit 681,629 513,862 32.6 % 1,284,310 932,030 37.8 %

As a % of net 38.9 % 33.3 % 39.4 % 33.9 % sales

Selling,general and 464,235 311,729 876,794 681,944 administrativeexpenses

As a % of net 26.5 % 20.2 % 26.9 % 24.8 % sales

Operating 217,394 202,133 7.5 % 407,516 250,086 63.0 %profit

As a % of net 12.4 % 13.1 % 12.5 % 9.1 % sales

Other expenses 1,855 4,653 4,416 10,754

Interest 42,440 41,075 86,900 77,102 expense, net

Income fromcontinuingoperations 173,099 156,405 316,200 162,230 before incometax expense

Income tax 25,236 19,837 39,933 20,544 expense

Income fromcontinuing 147,863 136,568 8.3 % 276,267 141,686 95.0 %operations

Income (loss)fromdiscontinued (19,187 ) 24,613 (410,853 ) 11,621operations,net of tax

Net income $ 128,676 $ 161,181 $ (134,586 ) $ 153,307 (loss)



Earnings(loss) per share - basic:

Continuing $ 0.42 $ 0.39 $ 0.79 $ 0.40 operations

Discontinued (0.05 ) 0.07 (1.17 ) 0.03 operations

Net income $ 0.37 $ 0.46 $ (0.38 ) $ 0.43 (loss)



Earnings(loss) per share -diluted:

Continuing $ 0.42 $ 0.39 $ 0.79 $ 0.40 operations

Discontinued (0.05 ) 0.07 (1.17 ) 0.03 operations

Net income $ 0.37 $ 0.46 $ (0.38 ) $ 0.43 (loss)



Weightedaverage shares outstanding:

Basic 350,987 350,538 350,995 354,778

Diluted 352,052 350,829 351,869 355,133

TABLE 2-A

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

As Reported

Impact from Foreign Currency1

Constant Currency

Quarter Ended June 27, 2020

% Change, As Reported

% Change, Constant Currency

As reported under GAAP:

Net sales

$

1,751,311

$

50,698

$

1,700,613

$

1,543,083

13.5

%

10.2

%

Gross profit

681,629

27,233

654,396

513,862

32.6

27.3

Operating profit

217,394

8,419

208,975

202,133

7.5

3.4

Diluted earnings per share from continuing operations

$

0.42

$

0.02

$

0.40

$

0.39

7.7

%

2.6

%

As adjusted:2

Net sales

$

1,751,311

$

50,698

$

1,700,613

$

1,543,083

13.5

%

10.2

%

Gross profit

683,529

27,233

656,296

532,280

28.4

23.3

Operating profit

236,058

8,419

227,639

234,412

0.7

(2.9

)

Diluted earnings per share from continuing operations

$

0.47

$

0.02

$

0.45

$

0.46

2.2

%

(2.2

)%

TABLE 2-A

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

Impact % % As Reported from Constant Quarter Ended Change, Change, Foreign Currency June 27, 2020 As Constant Currency^1 Reported Currency

Asreported underGAAP:

Net sales $ 1,751,311 $ 50,698 $ 1,700,613 $ 1,543,083 13.5 % 10.2 %

Gross 681,629 27,233 654,396 513,862 32.6 27.3 profit

Operating 217,394 8,419 208,975 202,133 7.5 3.4 profit

Dilutedearningsper share $ 0.42 $ 0.02 $ 0.40 $ 0.39 7.7 % 2.6 %fromcontinuingoperations



Asadjusted:^ 2

Net sales $ 1,751,311 $ 50,698 $ 1,700,613 $ 1,543,083 13.5 % 10.2 %

Gross 683,529 27,233 656,296 532,280 28.4 23.3 profit

Operating 236,058 8,419 227,639 234,412 0.7 (2.9 )profit

Dilutedearningsper share $ 0.47 $ 0.02 $ 0.45 $ 0.46 2.2 % (2.2 )%fromcontinuingoperations

Six Months Ended July 3, 2021

As Reported

Impact from Foreign Currency1

Constant Currency

Six Months Ended June 27, 2020

% Change, As Reported

% Change, Constant Currency

As reported under GAAP:

Net sales

$

3,259,340

$

93,771

$

3,165,569

$

2,746,153

18.7

%

15.3

%

Gross profit

1,284,310

51,415

1,232,895

932,030

37.8

32.3

Operating profit

407,516

15,952

391,564

250,086

63.0

56.6

Diluted earnings per share from continuing operations

$

0.79

$

0.04

$

0.75

$

0.40

97.5

%

87.5

%

As adjusted:2

Net sales

$

3,259,340

$

93,771

$

3,165,569

$

2,746,153

18.7

%

15.3

%

Gross profit

1,289,017

51,415

1,237,602

972,259

32.6

27.3

Operating profit

445,573

15,952

429,621

306,689

45.3

40.1

Diluted earnings per share from continuing operations

$

0.86

$

0.04

$

0.82

$

0.53

62.3

%

54.7

%

Six Months Ended July 3, 2021

Impact Six Months % % As Reported from Constant Ended Change, Change, Foreign Currency June 27, 2020 As Constant Currency^1 Reported Currency

Asreported underGAAP:

Net sales $ 3,259,340 $ 93,771 $ 3,165,569 $ 2,746,153 18.7 % 15.3 %

Gross 1,284,310 51,415 1,232,895 932,030 37.8 32.3 profit

Operating 407,516 15,952 391,564 250,086 63.0 56.6 profit

Dilutedearningsper share $ 0.79 $ 0.04 $ 0.75 $ 0.40 97.5 % 87.5 %fromcontinuingoperations



Asadjusted:^ 2

Net sales $ 3,259,340 $ 93,771 $ 3,165,569 $ 2,746,153 18.7 % 15.3 %

Gross 1,289,017 51,415 1,237,602 972,259 32.6 27.3 profit

Operating 445,573 15,952 429,621 306,689 45.3 40.1 profit

Dilutedearningsper share $ 0.86 $ 0.04 $ 0.82 $ 0.53 62.3 % 54.7 %fromcontinuingoperations

1

Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.

2

Results for the quarters and six months ended July 3, 2021 and June 27, 2020 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

Effect of the change in foreign currency exchange rates year-over-year.1 Calculated by applying prior period exchange rates to the current year financial results.

Results for the quarters and six months ended July 3, 2021 and June 27,2 2020 reflect adjustments for restructuring and other action-related charges. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

TABLE 2-B

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

As Reported

Impact from Foreign Currency1

Constant Currency

Quarter Ended June 29, 2019

% Change, As Reported

% Change, Constant Currency

As reported under GAAP:

Net sales

$

1,751,311

$

26,303

$

1,725,008

$

1,636,709

7.0

%

5.4

%

Gross profit

681,629

14,457

667,172

604,182

12.8

10.4

Operating profit

217,394

4,152

213,242

219,893

(1.1

)

(3.0

)

Diluted earnings per share from continuing operations

$

0.42

$

0.01

$

0.41

$

0.41

2.4

%

-

%

As adjusted:2

Net sales

$

1,751,311

$

26,303

$

1,725,008

$

1,517,999

15.4

%

13.6

%

Gross profit

683,529

14,457

669,072

581,442

17.6

15.1

Operating profit

236,058

4,152

231,906

206,865

14.1

12.1

Diluted earnings per share from continuing operations

$

0.47

$

0.01

$

0.46

$

0.38

23.7

%

21.1

%

TABLE 2-B

HANESBRANDS INC.

Supplemental Financial Information

Impact of Foreign Currency

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

Impact % % As Reported from Constant Quarter Ended Change, Change, Foreign Currency June 29, 2019 As Constant Currency^1 Reported Currency

Asreported underGAAP:

Net sales $ 1,751,311 $ 26,303 $ 1,725,008 $ 1,636,709 7.0 % 5.4 %

Gross 681,629 14,457 667,172 604,182 12.8 10.4 profit

Operating 217,394 4,152 213,242 219,893 (1.1 ) (3.0 )profit

Dilutedearningsper share $ 0.42 $ 0.01 $ 0.41 $ 0.41 2.4 % - %fromcontinuingoperations



Asadjusted:^ 2

Net sales $ 1,751,311 $ 26,303 $ 1,725,008 $ 1,517,999 15.4 % 13.6 %

Gross 683,529 14,457 669,072 581,442 17.6 15.1 profit

Operating 236,058 4,152 231,906 206,865 14.1 12.1 profit

Dilutedearningsper share $ 0.47 $ 0.01 $ 0.46 $ 0.38 23.7 % 21.1 %fromcontinuingoperations

Six Months Ended July 3, 2021

As Reported

Impact from Foreign Currency1

Constant Currency

Six Months Ended June 29, 2019

% Change, As Reported

% Change, Constant Currency

As reported under GAAP:

Net sales

$

3,259,340

$

48,833

$

3,210,507

$

3,086,396

5.6

%

4.0

%

Gross profit

1,284,310

27,290

1,257,020

1,149,104

11.8

9.4

Operating profit

407,516

8,587

398,929

359,501

13.4

11.0

Diluted earnings per share from continuing operations

$

0.79

$

0.02

$

0.76

$

0.62

27.4

%

22.6

%

As adjusted:2

Net sales

$

3,259,340

$

48,833

$

3,210,507

$

2,873,582

13.4

%

11.7

%

Gross profit

1,289,017

27,290

1,261,727

1,113,949

15.7

13.3

Operating profit

445,573

8,587

436,986

346,726

28.5

26.0

Diluted earnings per share from continuing operations

$

0.86

$

0.02

$

0.84

$

0.59

45.8

%

42.4

%

Six Months Ended July 3, 2021

Impact Six Months % % As Reported from Constant Ended Change, Change, Foreign Currency June 29, 2019 As Constant Currency^1 Reported Currency

Asreported underGAAP:

Net sales $ 3,259,340 $ 48,833 $ 3,210,507 $ 3,086,396 5.6 % 4.0 %

Gross 1,284,310 27,290 1,257,020 1,149,104 11.8 9.4 profit

Operating 407,516 8,587 398,929 359,501 13.4 11.0 profit

Dilutedearningsper share $ 0.79 $ 0.02 $ 0.76 $ 0.62 27.4 % 22.6 %fromcontinuingoperations



Asadjusted:^ 2

Net sales $ 3,259,340 $ 48,833 $ 3,210,507 $ 2,873,582 13.4 % 11.7 %

Gross 1,289,017 27,290 1,261,727 1,113,949 15.7 13.3 profit

Operating 445,573 8,587 436,986 346,726 28.5 26.0 profit

Dilutedearningsper share $ 0.86 $ 0.02 $ 0.84 $ 0.59 45.8 % 42.4 %fromcontinuingoperations

1

Effect of the change in foreign currency exchange rates year-over-year. Calculated by applying prior period exchange rates to the current year financial results.

2

Results for the quarters and six months ended July 3, 2021 and June 29, 2019 reflect adjustments for restructuring and other action-related charges. Results for the quarter and six months ended June 29, 2019 also reflect adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

Effect of the change in foreign currency exchange rates year-over-year.1 Calculated by applying prior period exchange rates to the current year financial results.

Results for the quarters and six months ended July 3, 2021 and June 29, 2019 reflect adjustments for restructuring and other action-related charges.2 Results for the quarter and six months ended June 29, 2019 also reflect adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

TABLE 3-A

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

Quarters Ended

Six Months Ended

July 3,2021

June 27,2020

% Change

July 3,2021

June 27,2020

% Change

Segment net sales:

Innerwear1

$

780,650

$

1,094,814

(28.7

)%

$

1,351,085

$

1,517,216

(10.9

)%

Activewear

404,189

168,379

140.0

768,192

456,379

68.3

International

478,923

251,285

90.6

985,184

679,515

45.0

Other

87,549

28,605

206.1

154,879

93,043

66.5

Total net sales

$

1,751,311

$

1,543,083

13.5

%

$

3,259,340

$

2,746,153

18.7

%

Segment operating profit:

Innerwear1

$

186,169

$

304,524

(38.9

)%

$

313,586

$

386,075

(18.8

)%

Activewear

41,047

(5,751

)

NM

101,641

2,357

4,212.3

International

61,900

5,162

1,099.1

149,080

55,907

166.7

Other

9,220

(11,929

)

NM

11,106

(15,322

)

NM

General corporate expenses/other

(62,278

)

(57,594

)

8.1

(129,840

)

(122,328

)

6.1

Total operating profit before restructuring and other action-related charges

236,058

234,412

0.7

445,573

306,689

45.3

Restructuring and other action-related charges

(18,664

)

(32,279

)

(42.2

)

(38,057

)

(56,603

)

(32.8

)

Total operating profit

$

217,394

$

202,133

7.5

%

$

407,516

$

250,086

63.0

%



TABLE 3-A

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

Quarters Ended Six Months Ended

July 3, June 27, % Change July 3, June 27, % Change 2021 2020 2021 2020

Segment net sales:

Innerwear^1 $ 780,650 $ 1,094,814 (28.7 ) $ 1,351,085 $ 1,517,216 (10.9 ) % %

Activewear 404,189 168,379 140.0 768,192 456,379 68.3

International 478,923 251,285 90.6 985,184 679,515 45.0

Other 87,549 28,605 206.1 154,879 93,043 66.5

Total net $ 1,751,311 $ 1,543,083 13.5 % $ 3,259,340 $ 2,746,153 18.7 %sales



Segmentoperating profit:

Innerwear^1 $ 186,169 $ 304,524 (38.9 ) $ 313,586 $ 386,075 (18.8 ) % %

Activewear 41,047 (5,751 ) NM 101,641 2,357 4,212.3

International 61,900 5,162 1,099.1 149,080 55,907 166.7

Other 9,220 (11,929 ) NM 11,106 (15,322 ) NM

Generalcorporate (62,278 ) (57,594 ) 8.1 (129,840 ) (122,328 ) 6.1 expenses/other

Totaloperatingprofit beforerestructuring 236,058 234,412 0.7 445,573 306,689 45.3 and otheraction-relatedcharges

Restructuringand other (18,664 ) (32,279 ) (42.2 ) (38,057 ) (56,603 ) (32.8 )action-relatedcharges

Totaloperating $ 217,394 $ 202,133 7.5 % $ 407,516 $ 250,086 63.0 %profit

1

The Innerwear segment includes $614 million of net sales of personal protective equipment in the second quarter and six months of 2020.

1 The Innerwear segment includes $614 million of net sales of personal protective equipment in the second quarter and six months of 2020.

Quarters Ended

Six Months Ended

July 3,2021

June 27,2020

Basis Points Change

July 3,2021

June 27,2020

Basis Points Change

Segment operating margin:

Innerwear

23.8

%

27.8

%

(397

)

23.2

%

25.4

%

(220

)

Activewear

10.2

(3.4

)

1,357

13.2

0.5

1,270

International

12.9

2.1

1,087

15.1

8.2

690

Other

10.5

(41.7

)

5,223

7.2

(16.5

)

2,370

General corporate expenses/other

(3.6

)

(3.7

)

18

(4.0

)

(4.5

)

47

Total operating margin before restructuring and other action-related charges

13.5

15.2

(171

)

13.7

11.2

250

Restructuring and other action-related charges

(1.1

)

(2.1

)

103

(1.2

)

(2.1

)

89

Total operating margin

12.4

%

13.1

%

(69

)

12.5

%

9.1

%

340

Quarters Ended Six Months Ended

July June Basis July June Basis 3, 27, Points 3, 27, Points 2021 2020 Change 2021 2020 Change

Segment operating margin:

Innerwear 23.8 % 27.8 % (397 ) 23.2 % 25.4 % (220 )

Activewear 10.2 (3.4 ) 1,357 13.2 0.5 1,270

International 12.9 2.1 1,087 15.1 8.2 690

Other 10.5 (41.7 ) 5,223 7.2 (16.5 ) 2,370

General corporate (3.6 ) (3.7 ) 18 (4.0 ) (4.5 ) 47 expenses/other

Total operating marginbefore restructuring 13.5 15.2 (171 ) 13.7 11.2 250 and otheraction-related charges

Restructuring andother action-related (1.1 ) (2.1 ) 103 (1.2 ) (2.1 ) 89 charges

Total operating margin 12.4 % 13.1 % (69 ) 12.5 % 9.1 % 340

TABLE 3-B

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

Quarters Ended

Six Months Ended

July 3,2021

June 29, 2019 Rebased1

% Change

July 3,2021

June 29, 2019 Rebased1

% Change

Segment net sales:

Innerwear

$

780,650

$

657,477

18.7

%

$

1,351,085

$

1,123,891

20.2

%

Activewear

404,189

350,694

15.3

768,192

671,461

14.4

International

478,923

430,819

11.2

985,184

921,648

6.9

Other

87,549

79,009

10.8

154,879

156,582

(1.1

)

Total net sales

$

1,751,311

$

1,517,999

15.4

%

$

3,259,340

$

2,873,582

13.4

%

Segment operating profit:

Innerwear

$

186,169

$

146,997

26.6

%

$

313,586

$

250,123

25.4

%

Activewear

41,047

45,855

(10.5

)

101,641

70,025

45.1

International

61,900

66,490

(6.9

)

149,080

151,266

(1.4

)

Other

9,220

7,994

15.3

11,106

10,429

6.5

General corporate expenses/other

(62,278

)

(60,471

)

3.0

(129,840

)

(135,117

)

(3.9

)

Total operating profit before restructuring and other action-related charges

236,058

206,865

14.1

445,573

346,726

28.5

Restructuring and other action-related charges

(18,664

)

(12,429

)

50.2

(38,057

)

(33,605

)

13.2

Total operating profit

$

217,394

$

194,436

11.8

%

$

407,516

$

313,121

30.1

%

TABLE 3-B

HANESBRANDS INC.

Supplemental Financial Information

By Business Segment

(in thousands)

(Unaudited)

Quarters Ended Six Months Ended

July 3, June 29, 2019 % July 3, June 29, 2019 % 2021 Rebased^1 Change 2021 Rebased^1 Change

Segment net sales:

Innerwear $ 780,650 $ 657,477 18.7 % $ 1,351,085 $ 1,123,891 20.2 %

Activewear 404,189 350,694 15.3 768,192 671,461 14.4

International 478,923 430,819 11.2 985,184 921,648 6.9

Other 87,549 79,009 10.8 154,879 156,582 (1.1 )

Total net $ 1,751,311 $ 1,517,999 15.4 % $ 3,259,340 $ 2,873,582 13.4 %sales



Segmentoperating profit:

Innerwear $ 186,169 $ 146,997 26.6 % $ 313,586 $ 250,123 25.4 %

Activewear 41,047 45,855 (10.5 ) 101,641 70,025 45.1

International 61,900 66,490 (6.9 ) 149,080 151,266 (1.4 )

Other 9,220 7,994 15.3 11,106 10,429 6.5

Generalcorporate (62,278 ) (60,471 ) 3.0 (129,840 ) (135,117 ) (3.9 )expenses/other

Totaloperatingprofit beforerestructuring 236,058 206,865 14.1 445,573 346,726 28.5 and otheraction-relatedcharges

Restructuringand other (18,664 ) (12,429 ) 50.2 (38,057 ) (33,605 ) 13.2 action-relatedcharges

Totaloperating $ 217,394 $ 194,436 11.8 % $ 407,516 $ 313,121 30.1 %profit

Quarters Ended

Six Months Ended

July 3,2021

June 29, 2019 Rebased1

Basis Points Change

July 3,2021

June 29, 2019 Rebased1

Basis Points Change

Segment operating margin:

Innerwear

23.8

%

22.4

%

149

23.2

%

22.3

%

94

Activewear

10.2

13.1

(292

)

13.2

10.4

277

International

12.9

15.4

(251

)

15.1

16.4

(131

)

Other

10.5

10.1

41

7.2

6.7

54

General corporate expenses/other

(3.6

)

(4.0

)

43

(4.0

)

(4.7

)

72

Total operating margin before restructuring and other action-related charges

13.5

13.6

(15

)

13.7

12.1

160

Restructuring and other action-related charges

(1.1

)

(0.8

)

(25

)

(1.2

)

(1.2

)

-

Total operating margin

12.4

%

12.8

%

(40

)

12.5

%

10.9

%

160

Quarters Ended Six Months Ended

July June 29, Basis July June 29, Basis 3, 2019 Points 3, 2019 Points 2021 Rebased^ Change 2021 Rebased^ Change 1 1

Segment operating margin:

Innerwear 23.8 % 22.4 % 149 23.2 % 22.3 % 94

Activewear 10.2 13.1 (292 ) 13.2 10.4 277

International 12.9 15.4 (251 ) 15.1 16.4 (131 )

Other 10.5 10.1 41 7.2 6.7 54

General corporate (3.6 ) (4.0 ) 43 (4.0 ) (4.7 ) 72 expenses/other

Total operating marginbefore restructuring 13.5 13.6 (15 ) 13.7 12.1 160 and otheraction-related charges

Restructuring andother action-related (1.1 ) (0.8 ) (25 ) (1.2 ) (1.2 ) - charges

Total operating margin 12.4 % 12.8 % (40 ) 12.5 % 10.9 % 160

1

Results for the quarter and six months ended June 29, 2019 reflect adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

Results for the quarter and six months ended June 29, 2019 reflect1 adjustments for the exited C9 Champion mass program and DKNY intimate apparel license. See "Reconciliation of Select GAAP Measures to Non-GAAP Measures" in Tables 6-A through 6-E.

TABLE 4

HANESBRANDS INC.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

July 3,2021

January 2,2021

June 27,2020

Assets

Cash and cash equivalents

$

667,298

$

900,615

$

556,099

Trade accounts receivable, net

960,993

768,221

1,139,130

Inventories

1,530,622

1,367,758

1,774,139

Other current assets

159,715

158,700

171,435

Current assets of discontinued operations

301,986

234,086

401,347

Total current assets

3,620,614

3,429,380

4,042,150

Property, net

446,356

477,821

496,933

Right-of-use assets

398,526

432,631

438,683

Trademarks and other identifiable intangibles, net

1,258,783

1,293,847

1,196,359

Goodwill

1,148,021

1,158,938

1,144,739

Deferred tax assets

351,309

367,976

193,100

Other noncurrent assets

54,380

64,773

118,296

Noncurrent assets of discontinued operations

-

494,501

493,045

Total assets

$

7,277,989

$

7,719,867

$

8,123,305

Liabilities

Accounts payable

$

1,171,645

$

891,868

$

1,101,438

Accrued liabilities

628,007

609,864

452,763

Lease liabilities

129,053

136,510

147,406

Notes payable

-

-

13

Current portion of long-term debt

37,500

263,936

-

Current liabilities of discontinued operations

289,751

222,183

310,972

Total current liabilities

2,255,956

2,124,361

2,012,592

Long-term debt

3,647,482

3,739,434

3,985,631

Lease liabilities - noncurrent

299,380

331,577

330,599

Pension and postretirement benefits

327,597

381,457

328,647

Other noncurrent liabilities

185,384

216,091

270,152

Noncurrent liabilities of discontinued operations

-

112,989

116,364

Total liabilities

6,715,799

6,905,909

7,043,985

Stockholders' equity

Preferred stock

-

-

-

Common stock

3,491

3,488

3,481

Additional paid-in capital

310,148

307,883

302,522

Retained earnings

829,479

1,069,546

1,404,326

Accumulated other comprehensive loss

(580,928

)

(566,959

)

(631,009

)

Total stockholders' equity

562,190

813,958

1,079,320

Total liabilities and stockholders' equity

$

7,277,989

$

7,719,867

$

8,123,305

TABLE 4

HANESBRANDS INC.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

July 3, January 2, June 27, 2021 2021 2020

Assets

Cash and cash equivalents $ 667,298 $ 900,615 $ 556,099

Trade accounts receivable, net 960,993 768,221 1,139,130

Inventories 1,530,622 1,367,758 1,774,139

Other current assets 159,715 158,700 171,435

Current assets of discontinued 301,986 234,086 401,347 operations

Total current assets 3,620,614 3,429,380 4,042,150

Property, net 446,356 477,821 496,933

Right-of-use assets 398,526 432,631 438,683

Trademarks and other 1,258,783 1,293,847 1,196,359 identifiable intangibles, net

Goodwill 1,148,021 1,158,938 1,144,739

Deferred tax assets 351,309 367,976 193,100

Other noncurrent assets 54,380 64,773 118,296

Noncurrent assets of - 494,501 493,045 discontinued operations

Total assets $ 7,277,989 $ 7,719,867 $ 8,123,305



Liabilities

Accounts payable $ 1,171,645 $ 891,868 $ 1,101,438

Accrued liabilities 628,007 609,864 452,763

Lease liabilities 129,053 136,510 147,406

Notes payable - - 13

Current portion of long-term 37,500 263,936 - debt

Current liabilities of 289,751 222,183 310,972 discontinued operations

Total current liabilities 2,255,956 2,124,361 2,012,592

Long-term debt 3,647,482 3,739,434 3,985,631

Lease liabilities - noncurrent 299,380 331,577 330,599

Pension and postretirement 327,597 381,457 328,647 benefits

Other noncurrent liabilities 185,384 216,091 270,152

Noncurrent liabilities of - 112,989 116,364 discontinued operations

Total liabilities 6,715,799 6,905,909 7,043,985



Stockholders' equity

Preferred stock - - -

Common stock 3,491 3,488 3,481

Additional paid-in capital 310,148 307,883 302,522

Retained earnings 829,479 1,069,546 1,404,326

Accumulated other comprehensive (580,928 ) (566,959 ) (631,009 )loss

Total stockholders' equity 562,190 813,958 1,079,320

Total liabilities and $ 7,277,989 $ 7,719,867 $ 8,123,305 stockholders' equity

TABLE 5

HANESBRANDS INC.

Condensed Consolidated Statements of Cash Flows1

(in thousands)

(Unaudited)

Quarters Ended

Six Months Ended

July 3,2021

June 27,2020

July 3,2021

June 27,2020

Operating Activities:

Net income (loss)

$

128,676

$

161,181

$

(134,586

)

$

153,307

Adjustments to reconcile net income (loss) to net cash from operating activities:

Depreciation

19,423

22,618

43,565

45,399

Amortization of acquisition intangibles

4,799

6,086

10,978

12,199

Other amortization

2,794

2,630

5,814

5,107

Impairment of intangible assets and goodwill

-

20,319

163,047

20,319

Loss on classification of assets held for sale

9,828

-

236,180

-

Amortization of debt issuance costs

3,089

2,996

7,669

5,119

Other

(8,389

)

21,505

(14,224

)

16,247

Changes in assets and liabilities:

Accounts receivable

(136,151

)

(465,828

)

(200,106

)

(392,134

)

Inventories

(52,368

)

25,376

(175,149

)

(61,409

)

Other assets

(5,155

)

(58,360

)

4,451

(31,570

)

Accounts payable

191,121

223,943

300,318

210,338

Accrued pension and postretirement benefits

(419

)

2,163

(39,176

)

(19,318

)

Accrued liabilities and other

38,062

100,794

3,475

18,603

Net cash from operating activities

195,310

65,423

212,256

(17,793

)

Investing Activities:

Capital expenditures

(7,527

)

(20,753

)

(25,331

)

(46,512

)

Proceeds from sales of assets

49

-

2,455

66

Other

5,143

4,607

6,937

5,823

Net cash from investing activities

(2,335

)

(16,146

)

(15,939

)

(40,623

)

Financing Activities:

Repayments on Term Loan Facilities

(6,250

)

-

(306,250

)

-

Borrowings on Accounts Receivable Securitization Facility

-

-

-

227,061

Repayments on Accounts Receivable Securitization Facility

-

(152,152

)

-

(227,061

)

Borrowings on Revolving Loan Facilities

-

-

-

1,638,000

Repayments on Revolving Loan Facilities

-

(950,000

)

-

(1,638,000

)

Borrowings on Senior Notes

-

700,000

-

700,000

Borrowings on International Debt

-

-

-

31,222

Borrowings on notes payable

21,532

54,357

42,638

116,669

Repayments on notes payable

(22,790

)

(48,021

)

(43,066

)

(112,373

)

Share repurchases

-

-

-

(200,269

)

Cash dividends paid

(52,368

)

(52,213

)

(104,719

)

(105,896

)

Other

378

(14,167

)

(2,524

)

(14,035

)

Net cash from financing activities

(59,498

)

(462,196

)

(413,921

)

415,318

Effect of changes in foreign exchange rates on cash

882

12,392

(16,780

)

(2,669

)

Change in cash, cash equivalents and restricted cash

134,359

(400,527

)

(234,384

)

354,233

Cash, cash equivalents and restricted cash at beginning of period

541,860

1,084,683

910,603

329,923

Cash, cash equivalents and restricted cash at end of period

676,219

684,156

676,219

684,156

Less restricted cash at end of period

-

1,042

-

1,042

Cash and cash equivalents at end of period

$

676,219

$

683,114

$

676,219

$

683,114

Balances included in the Condensed Consolidated Balance Sheets:

Cash and cash equivalents

$

667,298

$

556,099

$

667,298

$

556,099

Cash and cash equivalents included in current assets of discontinued operations

8,921

127,015

8,921

127,015

Cash and cash equivalents at end of period

$

676,219

$

683,114

$

676,219

$

683,114

TABLE 5

HANESBRANDS INC.

Condensed Consolidated Statements of Cash Flows^1

(in thousands)

(Unaudited)

Quarters Ended Six Months Ended

July 3, June 27, July 3, June 27, 2021 2020 2021 2020

Operating Activities:

Net income (loss) $ 128,676 $ 161,181 $ (134,586 ) $ 153,307

Adjustments toreconcile net income(loss) to net cash from operatingactivities:

Depreciation 19,423 22,618 43,565 45,399

Amortization ofacquisition 4,799 6,086 10,978 12,199 intangibles

Other amortization 2,794 2,630 5,814 5,107

Impairment ofintangible assets - 20,319 163,047 20,319 and goodwill

Loss onclassification of 9,828 - 236,180 - assets held for sale

Amortization of debt 3,089 2,996 7,669 5,119 issuance costs

Other (8,389 ) 21,505 (14,224 ) 16,247

Changes in assets and liabilities:

Accounts receivable (136,151 ) (465,828 ) (200,106 ) (392,134 )

Inventories (52,368 ) 25,376 (175,149 ) (61,409 )

Other assets (5,155 ) (58,360 ) 4,451 (31,570 )

Accounts payable 191,121 223,943 300,318 210,338

Accrued pension andpostretirement (419 ) 2,163 (39,176 ) (19,318 )benefits

Accrued liabilities 38,062 100,794 3,475 18,603 and other

Net cash from 195,310 65,423 212,256 (17,793 )operating activities



Investing Activities:

Capital expenditures (7,527 ) (20,753 ) (25,331 ) (46,512 )

Proceeds from sales 49 - 2,455 66 of assets

Other 5,143 4,607 6,937 5,823

Net cash from (2,335 ) (16,146 ) (15,939 ) (40,623 )investing activities



Financing Activities:

Repayments on Term (6,250 ) - (306,250 ) - Loan Facilities

Borrowings onAccounts Receivable - - - 227,061 SecuritizationFacility

Repayments onAccounts Receivable - (152,152 ) - (227,061 )SecuritizationFacility

Borrowings onRevolving Loan - - - 1,638,000 Facilities

Repayments onRevolving Loan - (950,000 ) - (1,638,000 )Facilities

Borrowings on Senior - 700,000 - 700,000 Notes

Borrowings on - - - 31,222 International Debt

Borrowings on notes 21,532 54,357 42,638 116,669 payable

Repayments on notes (22,790 ) (48,021 ) (43,066 ) (112,373 )payable

Share repurchases - - - (200,269 )

Cash dividends paid (52,368 ) (52,213 ) (104,719 ) (105,896 )

Other 378 (14,167 ) (2,524 ) (14,035 )

Net cash from (59,498 ) (462,196 ) (413,921 ) 415,318 financing activities

Effect of changes inforeign exchange 882 12,392 (16,780 ) (2,669 )rates on cash

Change in cash, cashequivalents and 134,359 (400,527 ) (234,384 ) 354,233 restricted cash

Cash, cashequivalents and 541,860 1,084,683 910,603 329,923 restricted cash atbeginning of period

Cash, cashequivalents and 676,219 684,156 676,219 684,156 restricted cash atend of period

Less restricted cash - 1,042 - 1,042 at end of period

Cash and cashequivalents at end $ 676,219 $ 683,114 $ 676,219 $ 683,114 of period



Balances included inthe Condensed Consolidated BalanceSheets:

Cash and cash $ 667,298 $ 556,099 $ 667,298 $ 556,099 equivalents

Cash and cashequivalents includedin current assets of 8,921 127,015 8,921 127,015 discontinuedoperations

Cash and cashequivalents at end $ 676,219 $ 683,114 $ 676,219 $ 683,114 of period

1

The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.

The cash flows related to discontinued operations have not been segregated1 and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.

TABLE 6-AHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

681,629

$

(464,235

)

$

217,394

$

173,099

$

(25,236

)

$

147,863

$

0.42

As a percentage of net sales

38.9

%

26.5

%

12.4

%

Restructuring and other action-related charges:

Full Potential Plan:

Professional services

-

13,804

13,804

13,804

-

13,804

0.04

Other

1,900

2,960

4,860

4,860

-

4,860

0.01

Tax effect on actions

-

-

-

-

(1,903

)

(1,903

)

(0.01

)

Total restructuring and other action-related charges

1,900

16,764

18,664

18,664

(1,903

)

16,761

0.05

As adjusted

$

683,529

$

(447,471

)

$

236,058

$

191,763

$

(27,139

)

$

164,624

$

0.47

As a percentage of net sales

39.0

%

25.6

%

13.5

%

TABLE 6-AHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended July 3, 2021

Selling, Income From Diluted General Continuing Income From Earnings Per Gross and Operating Operations Income Tax Continuing Share From Profit Administrative Profit Before Expense Operations Continuing Expenses Income Tax Operations^1 Expense

As reported $ 681,629 $ (464,235 ) $ 217,394 $ 173,099 $ (25,236 ) $ 147,863 $ 0.42

As apercentage of 38.9 % 26.5 % 12.4 % net sales

Restructuringand other action-relatedcharges:

Full Potential Plan:

Professional - 13,804 13,804 13,804 - 13,804 0.04 services

Other 1,900 2,960 4,860 4,860 - 4,860 0.01

Tax effect on - - - - (1,903 ) (1,903 ) (0.01 )actions

Totalrestructuringand other 1,900 16,764 18,664 18,664 (1,903 ) 16,761 0.05 action-relatedcharges

As adjusted $ 683,529 $ (447,471 ) $ 236,058 $ 191,763 $ (27,139 ) $ 164,624 $ 0.47

As apercentage of 39.0 % 25.6 % 13.5 % net sales

Six Months Ended July 3, 2021

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

1,284,310

$

(876,794

)

$

407,516

$

316,200

$

(39,933

)

$

276,267

$

0.79

As a percentage of net sales

39.4

%

26.9

%

12.5

%

Restructuring and other action-related charges:

Full Potential Plan:

Professional services

-

25,510

25,510

25,510

-

25,510

0.07

Impairment of intangible assets

-

7,302

7,302

7,302

-

7,302

0.02

Other

4,707

538

5,245

5,245

-

5,245

0.01

Discrete tax benefit

-

-

-

-

(7,295

)

(7,295

)

(0.02

)

Tax effect on actions

-

-

-

-

(5,910

)

(5,910

)

(0.02

)

Total restructuring and other action-related charges

4,707

33,350

38,057

38,057

(13,205

)

24,852

0.07

As adjusted

$

1,289,017

$

(843,444

)

$

445,573

$

354,257

$

(53,138

)

$

301,119

$

0.86

As a percentage of net sales

39.5

%

25.9

%

13.7

%

Six Months Ended July 3, 2021

Income Selling, From Income Diluted General Operating Continuing Income Tax From Earnings Per Gross Profit and Profit Operations Expense Continuing Share From Administrative Before Operations Continuing Expenses Income Tax Operations^1 Expense

As reported $ 1,284,310 $ (876,794 ) $ 407,516 $ 316,200 $ (39,933 ) $ 276,267 $ 0.79

As apercentage of 39.4 % 26.9 % 12.5 % net sales

Restructuringand other action-relatedcharges:

Full Potential Plan:

Professional - 25,510 25,510 25,510 - 25,510 0.07 services

Impairment ofintangible - 7,302 7,302 7,302 - 7,302 0.02 assets

Other 4,707 538 5,245 5,245 - 5,245 0.01

Discrete tax - - - - (7,295 ) (7,295 ) (0.02 )benefit

Tax effect on - - - - (5,910 ) (5,910 ) (0.02 )actions

Totalrestructuringand other 4,707 33,350 38,057 38,057 (13,205 ) 24,852 0.07 action-relatedcharges

As adjusted $ 1,289,017 $ (843,444 ) $ 445,573 $ 354,257 $ (53,138 ) $ 301,119 $ 0.86

As apercentage of 39.5 % 25.9 % 13.7 % net sales

1

Amounts may not be additive due to rounding.

1 Amounts may not be additive due to rounding.

Including the favorable foreign currency impact of $12 million, global Champion sales excluding C9 Champion increased approximately 122% in the second quarter of 2021 compared to the second quarter of 2020. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 116% in the second quarter of 2021 compared to the second quarter of 2020.

Including the favorable foreign currency impact of $10 million, global Champion sales excluding C9 Champion increased approximately 21% in the second quarter of 2021 compared to the second quarter of 2019. On a constant currency basis, global Champion sales excluding C9 Champion increased approximately 18% in the second quarter of 2021 compared to the second quarter of 2019.

Including the favorable foreign currency impact of $12 million, global Championsales excluding C9 Champion increased approximately 122% in the second quarterof 2021 compared to the second quarter of 2020. On a constant currency basis,global Champion sales excluding C9 Champion increased approximately 116% in thesecond quarter of 2021 compared to the second quarter of 2020.

Including the favorable foreign currency impact of $10 million, global Championsales excluding C9 Champion increased approximately 21% in the second quarterof 2021 compared to the second quarter of 2019. On a constant currency basis,global Champion sales excluding C9 Champion increased approximately 18% in thesecond quarter of 2021 compared to the second quarter of 2019.

TABLE 6-BHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 27, 2020

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

513,862

$

(311,729

)

$

202,133

$

156,405

$

(19,837

)

$

136,568

$

0.39

As a percentage of net sales

33.3

%

20.2

%

13.1

%

Restructuring and other action-related charges:

Supply chain actions

2,637

-

2,637

2,637

-

2,637

0.01

Program exit costs

1,285

-

1,285

1,285

-

1,285

0.00

Other

(373

)

4,443

4,070

4,070

-

4,070

0.01

COVID-19 related charges:

Bad debt

-

9,418

9,418

9,418

-

9,418

0.03

Inventory

14,869

-

14,869

14,869

-

14,869

0.04

Tax effect on actions

-

-

-

-

(6,695

)

(6,695

)

(0.02

)

Total restructuring and other action-related charges

18,418

13,861

32,279

32,279

(6,695

)

25,584

0.07

As adjusted

$

532,280

$

(297,868

)

$

234,412

$

188,684

$

(26,532

)

$

162,152

$

0.46

As a percentage of net sales

34.5

%

19.3

%

15.2

%

TABLE 6-BHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 27, 2020

Income Selling, From Income Diluted Gross General Operating Continuing Income Tax From Earnings Per Profit and Profit Operations Expense Continuing Share From Administrative Before Operations Continuing Expenses Income Tax Operations^1 Expense

As reported $ 513,862 $ (311,729 ) $ 202,133 $ 156,405 $ (19,837 ) $ 136,568 $ 0.39

As apercentage of 33.3 % 20.2 % 13.1 % net sales

Restructuringand other action-relatedcharges:

Supply chain 2,637 - 2,637 2,637 - 2,637 0.01 actions

Program exit 1,285 - 1,285 1,285 - 1,285 0.00 costs

Other (373 ) 4,443 4,070 4,070 - 4,070 0.01

COVID-19related charges:

Bad debt - 9,418 9,418 9,418 - 9,418 0.03

Inventory 14,869 - 14,869 14,869 - 14,869 0.04

Tax effect on - - - - (6,695 ) (6,695 ) (0.02 )actions

Totalrestructuringand other 18,418 13,861 32,279 32,279 (6,695 ) 25,584 0.07 action-relatedcharges

As adjusted $ 532,280 $ (297,868 ) $ 234,412 $ 188,684 $ (26,532 ) $ 162,152 $ 0.46

As apercentage of 34.5 % 19.3 % 15.2 % net sales

Six Months Ended June 27, 2020

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

932,030

$

(681,944

)

$

250,086

$

162,230

$

(20,544

)

$

141,686

$

0.40

As a percentage of net sales

33.9

%

24.8

%

9.1

%

Restructuring and other action-related charges:

Supply chain actions

16,702

-

16,702

16,702

-

16,702

0.05

Program exit costs

9,031

467

9,498

9,498

-

9,498

0.03

Other

(373

)

6,489

6,116

6,116

-

6,116

0.02

COVID-19 related charges:

Bad debt

-

9,418

9,418

9,418

-

9,418

0.03

Inventory

14,869

-

14,869

14,869

-

14,869

0.04

Tax effect on actions

-

-

-

-

(10,221

)

(10,221

)

(0.03

)

Total restructuring and other action-related charges

40,229

16,374

56,603

56,603

(10,221

)

46,382

0.13

As adjusted

$

972,259

$

(665,570

)

$

306,689

$

218,833

$

(30,765

)

$

188,068

$

0.53

As a percentage of net sales

35.4

%

24.2

%

11.2

%

Six Months Ended June 27, 2020

Income Selling, From Income Diluted General Operating Continuing Income Tax From Earnings Per Gross Profit and Profit Operations Expense Continuing Share From Administrative Before Operations Continuing Expenses Income Tax Operations^1 Expense

As reported $ 932,030 $ (681,944 ) $ 250,086 $ 162,230 $ (20,544 ) $ 141,686 $ 0.40

As apercentage of 33.9 % 24.8 % 9.1 % net sales

Restructuringand other action-relatedcharges:

Supply chain 16,702 - 16,702 16,702 - 16,702 0.05 actions

Program exit 9,031 467 9,498 9,498 - 9,498 0.03 costs

Other (373 ) 6,489 6,116 6,116 - 6,116 0.02

COVID-19related charges:

Bad debt - 9,418 9,418 9,418 - 9,418 0.03

Inventory 14,869 - 14,869 14,869 - 14,869 0.04

Tax effect on - - - - (10,221 ) (10,221 ) (0.03 )actions

Totalrestructuringand other 40,229 16,374 56,603 56,603 (10,221 ) 46,382 0.13 action-relatedcharges

As adjusted $ 972,259 $ (665,570 ) $ 306,689 $ 218,833 $ (30,765 ) $ 188,068 $ 0.53

As apercentage of 35.4 % 24.2 % 11.2 % net sales

1

Amounts may not be additive due to rounding.

1 Amounts may not be additive due to rounding.

TABLE 6-CHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 29, 2019

Net Sales

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

1,636,709

$

604,182

$

(384,289

)

$

219,893

$

165,645

$

(15,595

)

$

150,050

$

0.41

Less exited programs2

(118,710

)

(35,169

)

9,712

(25,457

)

(25,457

)

3,590

(21,867

)

(0.06

)

As rebased

1,517,999

569,013

(374,577

)

194,436

140,188

(12,005

)

128,183

0.35

As a percentage of net sales

37.5

%

24.7

%

12.8

%

Restructuring and other action-related charges:

Supply chain actions

-

12,429

-

12,429

12,429

-

12,429

0.03

Tax effect on actions

-

-

-

-

-

(1,753

)

(1,753

)

0.00

Total restructuring and other action-related charges

-

12,429

-

12,429

12,429

(1,753

)

10,676

0.03

As adjusted

$

1,517,999

$

581,442

$

(374,577

)

$

206,865

$

152,617

$

(13,758

)

$

138,859

$

0.38

As a percentage of net sales

38.3

%

24.7

%

13.6

%

TABLE 6-CHANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 29, 2019

Income Diluted Selling, From Income Earnings Gross General Operating Continuing Income Tax From Per Share Net Sales Profit and Profit Operations Expense Continuing From Administrative Before Operations Continuing Expenses Income Tax Operations^1 Expense

As reported $ 1,636,709 $ 604,182 $ (384,289 ) $ 219,893 $ 165,645 $ (15,595 ) $ 150,050 $ 0.41

Less exited (118,710 ) (35,169 ) 9,712 (25,457 ) (25,457 ) 3,590 (21,867 ) (0.06 )programs^2

As rebased 1,517,999 569,013 (374,577 ) 194,436 140,188 (12,005 ) 128,183 0.35

As apercentage of 37.5 % 24.7 % 12.8 % net sales

Restructuringand other action-relatedcharges:

Supply chain - 12,429 - 12,429 12,429 - 12,429 0.03 actions

Tax effect on - - - - - (1,753 ) (1,753 ) 0.00 actions

Totalrestructuringand other - 12,429 - 12,429 12,429 (1,753 ) 10,676 0.03 action-relatedcharges

As adjusted $ 1,517,999 $ 581,442 $ (374,577 ) $ 206,865 $ 152,617 $ (13,758 ) $ 138,859 $ 0.38

As apercentage of 38.3 % 24.7 % 13.6 % net sales

Six Months Ended June 29, 2019

Net Sales

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Income From Continuing Operations Before Income Tax Expense

Income Tax Expense

Income From Continuing Operations

Diluted Earnings Per Share From Continuing Operations1

As reported

$

3,086,396

$

1,149,104

$

(789,603

)$

359,501

$

250,284

$

(24,579

)

$

225,705

$

0.62

Less exited programs2

(212,814

)

(65,057

)18,677

(46,380

)(46,380

)

6,540

(39,840

)

(0.11

)

As rebased

2,873,582

1,084,047

(770,926

)313,121

203,904

(18,039

)

185,865

0.51

As a percentage of net sales

37.7

%

26.8

%

10.9

%

Restructuring and other action-related charges:

Supply chain actions

-

29,902

-

29,902

29,902

-

29,902

0.08

Other restructuring costs

-

-

3,703

3,703

3,703

-

3,703

0.01

Tax effect on actions

-

-

-

-

-

(4,738

)

(4,738

)

(0.01

)

Total restructuring and other action-related charges

-

29,902

3,703

33,605

33,605

(4,738

)

28,867

0.08

As adjusted

$

2,873,582

$

1,113,949

$

(767,223

)$

346,726

$

237,509

$

(22,777

)

$

214,732

$

0.59

As a percentage of net sales

38.8

%

26.7

%

12.1

%

Six Months Ended June 29, 2019

Income Diluted Selling, From Income Earnings Gross General Operating Continuing Income Tax From Per Share Net Sales Profit and Profit Operations Expense Continuing From Administrative Before Operations Continuing Expenses Income Tax Operations^ Expense 1

As reported $ 3,086,396 $ 1,149,104 $ (789,603 ) $ 359,501 $ 250,284 $ (24,579 ) $ 225,705 $ 0.62

Less exited (212,814 ) (65,057 18,677 (46,380 (46,380 ) 6,540 (39,840 ) (0.11 )programs^2 ) )

As rebased 2,873,582 1,084,047 (770,926 ) 313,121 203,904 (18,039 ) 185,865 0.51

As a percentage of 37.7 % 26.8 % 10.9 % net sales

Restructuring andother action-relatedcharges:

Supply chain - 29,902 - 29,902 29,902 - 29,902 0.08 actions

Otherrestructuring - - 3,703 3,703 3,703 - 3,703 0.01 costs

Tax effect on - - - - - (4,738 ) (4,738 ) (0.01 )actions

Totalrestructuring andother - 29,902 3,703 33,605 33,605 (4,738 ) 28,867 0.08 action-relatedcharges

As adjusted $ 2,873,582 $ 1,113,949 $ (767,223 ) $ 346,726 $ 237,509 $ (22,777 ) $ 214,732 $ 0.59

As a percentage of 38.8 % 26.7 % 12.1 % net sales

1

Amounts may not be additive due to rounding.

2

Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

1 Amounts may not be additive due to rounding.

2 Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

TABLE 6-D

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 29, 2019

As Reported

Less:Exited Programs1

Adjusted for Exited Programs

Less: Restructuring and other action-related charges

Rebased

Segment net sales:

Innerwear

$

678,604

$

21,127

$

657,477

$

-

$

657,477

Activewear

448,277

97,583

350,694

-

350,694

International

430,819

-

430,819

-

430,819

Other

79,009

-

79,009

-

79,009

Total net sales

$

1,636,709

$

118,710

$

1,517,999

$

-

$

1,517,999

Segment operating profit:

Innerwear

$

149,530

$

2,533

$

146,997

$

-

$

146,997

Activewear

68,779

22,924

45,855

-

45,855

International

66,490

-

66,490

-

66,490

Other

7,994

-

7,994

-

7,994

General corporate expenses/other

(60,471

)

-

(60,471

)

-

(60,471

)

Restructuring and other action-related charges

(12,429

)

-

(12,429

)

(12,429

)

-

Total operating profit

$

219,893

$

25,457

$

194,436

$

(12,429

)

$

206,865

TABLE 6-D

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Quarter Ended June 29, 2019

Less: Less:Exited Adjusted for Restructuring As Reported Programs^1 Exited and other Rebased Programs action-related charges

Segment net sales:

Innerwear $ 678,604 $ 21,127 $ 657,477 $ - $ 657,477

Activewear 448,277 97,583 350,694 - 350,694

International 430,819 - 430,819 - 430,819

Other 79,009 - 79,009 - 79,009

Total net $ 1,636,709 $ 118,710 $ 1,517,999 $ - $ 1,517,999 sales



Segmentoperating profit:

Innerwear $ 149,530 $ 2,533 $ 146,997 $ - $ 146,997

Activewear 68,779 22,924 45,855 - 45,855

International 66,490 - 66,490 - 66,490

Other 7,994 - 7,994 - 7,994

Generalcorporate (60,471 ) - (60,471 ) - (60,471 )expenses/other

Restructuringand other (12,429 ) - (12,429 ) (12,429 ) - action-relatedcharges

Totaloperating $ 219,893 $ 25,457 $ 194,436 $ (12,429 ) $ 206,865 profit

Six Months Ended June 29, 2019

As Reported

Less: Exited Programs1

Adjusted for Exited Programs

Less: Restructuring and other action-related charges

Rebased

Segment net sales:

Innerwear

$

1,154,549

$

30,658

$

1,123,891

$

-

$

1,123,891

Activewear

853,617

182,156

671,461

-

671,461

International

921,648

-

921,648

-

921,648

Other

156,582

-

156,582

-

156,582

Total net sales

$

3,086,396

$

212,814

$

2,873,582

$

-

$

2,873,582

Segment operating profit:

Innerwear

$

254,156

$

4,033

$

250,123

$

-

$

250,123

Activewear

112,372

42,347

70,025

-

70,025

International

151,266

-

151,266

-

151,266

Other

10,429

-

10,429

-

10,429

General corporate expenses/other

(135,117

)

-

(135,117

)

-

(135,117

)

Restructuring and other action-related charges

(33,605

)

-

(33,605

)

(33,605

)

-

Total operating profit

$

359,501

$

46,380

$

313,121

$

(33,605

)

$

346,726

Six Months Ended June 29, 2019

Less: Less: Adjusted for Restructuring As Reported Exited Exited and other Rebased Programs^1 Programs action-related charges

Segment net sales:

Innerwear $ 1,154,549 $ 30,658 $ 1,123,891 $ - $ 1,123,891

Activewear 853,617 182,156 671,461 - 671,461

International 921,648 - 921,648 - 921,648

Other 156,582 - 156,582 - 156,582

Total net $ 3,086,396 $ 212,814 $ 2,873,582 $ - $ 2,873,582 sales



Segmentoperating profit:

Innerwear $ 254,156 $ 4,033 $ 250,123 $ - $ 250,123

Activewear 112,372 42,347 70,025 - 70,025

International 151,266 - 151,266 - 151,266

Other 10,429 - 10,429 - 10,429

Generalcorporate (135,117 ) - (135,117 ) - (135,117 )expenses/other

Restructuringand other (33,605 ) - (33,605 ) (33,605 ) - action-relatedcharges

Totaloperating $ 359,501 $ 46,380 $ 313,121 $ (33,605 ) $ 346,726 profit

1

Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

1 Includes the results for the exited C9 Champion mass program and the DKNY intimate apparel license.

TABLE 6-E

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Last Twelve Months

July 3,2021

June 27,2020

EBITDA1:

Income from continuing operations

$

102,294

$

489,305

Interest expense, net

174,036

159,927

Income tax expense (benefit)

(90,551

)

66,201

Depreciation and amortization

116,442

113,251

Total EBITDA

302,221

828,684

Total restructuring and other action-related charges (excluding tax effect on actions)

715,650

85,513

Stock compensation expense

13,491

10,692

Total EBITDA, as adjusted

$

1,031,362

$

924,889

Net debt:

Debt (current and long-term debt)

$

3,684,982

$

3,985,631

Notes payable

-

13

(Less) Cash and cash equivalents

(667,298

)

(556,099

)

Net debt

$

3,017,684

$

3,429,545

Net debt/EBITDA, as adjusted

2.9

3.7

TABLE 6-E

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

Last Twelve Months

July 3, June 27, 2021 2020

EBITDA^1:

Income from continuing operations $ 102,294 $ 489,305

Interest expense, net 174,036 159,927

Income tax expense (benefit) (90,551 ) 66,201

Depreciation and amortization 116,442 113,251

Total EBITDA 302,221 828,684

Total restructuring and other action-related 715,650 85,513 charges (excluding tax effect on actions)

Stock compensation expense 13,491 10,692

Total EBITDA, as adjusted $ 1,031,362 $ 924,889



Net debt:

Debt (current and long-term debt) $ 3,684,982 $ 3,985,631

Notes payable - 13

(Less) Cash and cash equivalents (667,298 ) (556,099 )

Net debt $ 3,017,684 $ 3,429,545



Net debt/EBITDA, as adjusted 2.9 3.7

1

Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.

1 Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure.

Quarters Ended

Six Months Ended

July 3,2021

June 27,2020

July 3,2021

June 27,2020

Free cash flow1:

Net cash from operating activities

$

195,310

$

65,423

$

212,256

$

(17,793

)

Capital expenditures

(7,527

)

(20,753

)

(25,331

)

(46,512

)

Free cash flow

$

187,783

$

44,670

$

186,925

$

(64,305

)

Quarters Ended Six Months Ended

July 3, June 27, July 3, June 27, 2021 2020 2021 2020

Free cash flow^1:

Net cash from operating $ 195,310 $ 65,423 $ 212,256 $ (17,793 )activities

Capital expenditures (7,527 ) (20,753 ) (25,331 ) (46,512 )

Free cash flow $ 187,783 $ 44,670 $ 186,925 $ (64,305 )

1

Free cash flow includes the results from continuing and discontinued operations.

1 Free cash flow includes the results from continuing and discontinued operations.

TABLE 7

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of GAAP Outlook to Adjusted Outlook

(in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Year Ended

October 2,2021

January 1,2022

January 1,2022

Operating profit outlook, as calculated under GAAP

$216,000 to $226,000

$172,000 to $192,000

$795,000 to $825,000

Restructuring and other action-related charges

$19,000

$28,000

$85,000

Operating profit outlook, as adjusted

$235,000 to $245,000

$200,000 to $220,000

$880,000 to $910,000

Diluted earnings per share from continuing operations, as calculated under GAAP1

$0.42 to $0.45

$0.29 to $0.34

$1.50 to $1.58

Restructuring and other action-related charges

$0.03

$0.08

$0.18

Diluted earnings per share from continuing operations, as adjusted

$0.45 to $0.48

$0.37 to $0.42

$1.68 to $1.76

TABLE 7

HANESBRANDS INC.

Supplemental Financial Information

Reconciliation of GAAP Outlook to Adjusted Outlook

(in thousands, except per share data)

(Unaudited)

Quarter Quarter Year Ended Ended Ended

October 2, January 1, January 1, 2021 2022 2022

Operating profit outlook, as calculated $216,000 $172,000 $795,000under GAAP to to to $226,000 $192,000 $825,000

Restructuring and other action-related $19,000 $28,000 $85,000charges

$235,000 $200,000 $880,000Operating profit outlook, as adjusted to to to $245,000 $220,000 $910,000



Diluted earnings per share from continuing $0.42 to $0.29 to $1.50 tooperations, as calculated under GAAP^1 $0.45 $0.34 $1.58

Restructuring and other action-related $0.03 $0.08 $0.18charges

Diluted earnings per share from continuing $0.45 to $0.37 to $1.68 tooperations, as adjusted $0.48 $0.42 $1.76

1

The company expects approximately 353 million diluted weighted average shares outstanding for the quarters ended October 2, 2021 and January 1, 2022 and for the year ended January 1, 2022.

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