Hanesbrands Inc
HBI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$57.60 | Wpqxgk | Fklydgyqs |
Although Slowed by Macroeconomic Challenges, Hanesbrands’ Investments Should Bolster Its Brand
Business Strategy and Outlook
Narrow-moat Hanesbrands is the market leader in basic innerwear (60% of its 2021 sales) in multiple countries. We believe its key innerwear brands like Hanes and Bonds (in Australia) achieve premium pricing. While the firm faces challenges from inflation, currency movement, shipping delays, and COVID-19, we think Hanes' share leadership in replenishment apparel categories puts it in better shape than some competitors. In May 2021, the firm unveiled its Full Potential plan to expand global Champion, bring growth back to innerwear, improve connections to consumers (through greater marketing and enhanced e-commerce, for example), and streamline its portfolio.