UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Hanesbrands Inc.

(Exact name of registrant as specified in its charter)

Maryland		001-32891		20-3552316
(State or other jurisdiction		(Commission File Number)		(IRS Employer Identification No.)
of incorporation)
1000 East Hanes Mill Road				27105
Winston-Salem, NC				(Zip Code)
(Address of principal executive
offices)

Registrant’s telephone number, including area code: (336) 519-4400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

TABLE OF CONTENTS

Item 2.02.		Results of Operations and Financial Condition
Item 7.01.		Regulation FD Disclosure
Item 9.01.		Financial Statements and Exhibits

Item 2.02. Results of Operations and Financial Condition

     On April 21, 2008, Hanesbrands Inc. (“Hanesbrands”) issued a press release announcing its financial results for the first quarter ended March 29, 2008. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. Exhibit 99.1 is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

     Exhibit 99.1 contains disclosures about operating profit excluding actions, net income excluding actions, earnings per diluted share excluding actions, gross profit excluding actions, selling, general and administrative expenses excluding actions, net operating profit after taxes excluding actions and EBITDA, all of which are considered non-GAAP performance measures, that Hanesbrands has chosen to provide to investors to enable them to perform additional analyses of past, present and future operating performance and as a supplemental means of evaluating Hanesbrands’ operations. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP or other pro forma measures used by other companies.

Item 7.01. Regulation FD Disclosure

     Exhibit 99.1 to this Current Report on Form 8-K includes forward-looking financial information that is expected to be discussed on the previously announced conference call with investors and analysts to be held by us at 9:00 a.m., Eastern time, today (April 21, 2008). The call may be accessed on the home page of the Hanesbrands corporate Web site, www.hanesbrands.com. Replays of the call will be available in the investors section of the Hanesbrands corporate Web site and via telephone. The telephone playback will be available from approximately noon, Eastern time, on April 21, 2008, until midnight, Eastern time, on April 28, 2008. The replay will be available by calling toll-free (800) 642-1687, or by toll call at (706) 645-9291. The replay pass code is 43163918. Exhibit 99.1 is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

     Exhibit 99.1 Press release dated April 21, 2008

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibits

99.1

Press release dated April 21, 2008

Exhibit 99.1

Hanesbrands Inc
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-4400

FOR IMMEDIATE RELEASE
News Media, contact:		Matt Hall, (336) 519-3386
Analysts and Investors, contact:		Brian Lantz, (336) 519-7130

HANESBRANDS INC. REPORTS FIRST-QUARTER 2008 RESULTS

WINSTON-SALEM, N.C. (April 21, 2008) — Hanesbrands Inc. (NYSE: HBI), a leading marketer of innerwear, outerwear and hosiery apparel, today reported first-quarter 2008 results.

Earnings per diluted share in the quarter more than tripled to $0.38. Excluding actions, non-GAAP earnings per diluted share increased by 56 percent to $0.42, up $0.15 as a result of reduced long-term debt, lower base interest rates, and operating profit growth. Total net sales decreased by 5.0 percent to $987.8 million, reflective of conditions in the retail marketplace.

“We are very pleased with our profit results in a tough economic climate. Our strong profit growth was driven by continued cost-reduction initiatives and management of our debt structure in spite of a sales decline,” Hanesbrands Chief Executive Officer Richard A. Noll said. “The key to our success is the continued execution of our business strategies of investing in our brands, driving cost reductions and globalizing our supply chain, and effectively investing our cash flow.”

Noteworthy Financial Highlights

Selected highlights for the quarter ended March 29, 2008, compared with the year-ago quarter ended March 31, 2007, include:

•		Earnings per diluted share in the quarter increased 217 percent to $0.38, up from $0.12 a year ago. Non-GAAP diluted EPS, which excludes actions, increased 56 percent to $0.42 per share, up from $0.27 a share a year ago.
		Non-GAAP net income, which excludes actions, increased by $14.2 million on the strength of cost reductions, supply chain initiatives, and lower interest expense. This net income improvement was a result of $4 million from higher operating profit, $6 million in lower interest expense due to lower long-term debt and implementing our accounts receivable securitization program, as well as $6 million in savings from lower LIBOR rates. Those improvements were partially offset by slightly higher income tax expense.

Hanesbrands Inc. Reports First-Quarter 2008 Results — Page 2

•		Operating profit in the quarter increased to $87.8 million, from $68.9 million a year ago.
		Non-GAAP operating profit, which excludes actions, increased by 4.9 percent to $93.6 million for an operating margin on sales of 9.5 percent versus 8.6 percent a year ago.
		Cost-reduction efforts resulted in an improved gross margin. As a percent of sales, selling, general and administrative costs were up, but the actual costs were flat, even though a timing shift resulted in higher media spending in the first quarter to support the launch of marketing initiatives for new Hanes products and the revitalization plan for Playtex.
•		Total net sales in the quarter decreased by $52 million to $987.8 million, from $1.04 billion in the year-ago quarter.
		Sales decreased in the company’s innerwear and outerwear segments, with declines in most product categories across most customers. The company’s sales to retailers are consistent with broad-based macroeconomic point-of-sale trends. International segment sales increased by 15 percent, driven by favorable foreign currency exchange rates and growth.
•		Hanesbrands continued to have a strong cash position at the end of the quarter. The company repurchased $8.3 million in company stock in the quarter, or 334,980 shares at an average price of $24.69.

(Diluted EPS excluding actions, net income excluding actions and operating profit excluding actions are non-GAAP measures used to better assess underlying business performance because they exclude the effect of unusual actions that are not directly related to operations. The unusual actions in the current or year-ago quarter were restructuring and related charges, amortization of gain on postretirement benefits, nonrecurring spinoff and related charges, and the tax effect on these items. See Table 4 for details and reconciliation with reported operating results consistent with generally accepted accounting principles.)

Other Quarter Comments

In March, Hanes launched its television, print and Internet advertising and marketing campaign for Hanes No Ride Up Panties featuring actress Sarah Chalke. The panties are the first products to feature Hanes’ new Comfort Fit consumer satisfaction guarantee.

“Our successful profit results in the quarter demonstrate that we have several business levers to increase our EPS as we strive to achieve our long-term growth goals,” Noll said. “We are pleased with our ability to execute cost reductions to deliver our solid profit performance. We are now focused on executing sales and marketing plans for the rest of the year, particularly for the important back-to-school and year-end holiday periods, to best navigate a challenging consumer environment.”

Hanesbrands Inc. Reports First-Quarter 2008 Results — Page 3

Hanesbrands Policy on Guidance

Hanesbrands follows a policy of not providing quarterly or annual EPS guidance. The company plans to communicate appropriately to provide investors with an understanding of long-term goals, the trends associated with its business and current financial performance.

Webcast Conference Call

Hanesbrands will host a live Internet webcast of its quarterly investor conference call at 9 a.m. EDT today. The broadcast may be accessed on the home page of the Hanesbrands corporate Web site, www.hanesbrands.com. The call is expected to conclude by 10 a.m.

An archived replay of the conference call webcast will be available in the investors section of the Hanesbrands Web site. A telephone playback will be available from approximately noon EDT today until midnight on April 28, 2008. The replay will be available by calling toll-free (800) 642-1687, or by toll call at (706) 645-9291. The replay pass code is 43163918.

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; fluctuations in the price or availability of cotton or labor; 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, 2007 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. Reports First-Quarter 2008 Results — Page 4

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.

#      #      #

TABLE 1

HANESBRANDS INC.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per-share amounts)
(Unaudited)

		Quarter Ended
		March 29, 2008				March 31, 2007				% Change
Net sales:
Innerwear		$	543,730			$	590,447
Outerwear			272,205				283,635
Hosiery			66,741				73,693
International			104,636				90,777
Other			11,121				15,398
Total segment net sales			998,433				1,053,950
Less: Intersegment			10,586				14,056
Total net sales			987,847				1,039,894				-5.0	%
Cost of sales			642,883				700,215
Gross profit			344,964				339,679				1.6	%
As a % of net sales			34.9	%			32.7	%
Selling, general and administrative expenses			254,612				254,567
As a % of net sales			25.8	%			24.5	%
Restructuring			2,558				16,246
Operating profit			87,794				68,866				27.5	%
As a % of net sales			8.9	%			6.6	%
Interest expense, net			40,394				51,717
Income before income tax expense			47,400				17,149
Income tax expense			11,376				5,145
Net income		$	36,024			$	12,004				200.1	%
Earnings per share:
Basic		$	0.38			$	0.12
Diluted		$	0.38			$	0.12				216.7	%
Weighted average shares outstanding:
Basic			94,344				96,475
Diluted			95,610				97,105

TABLE 2

HANESBRANDS INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)

		March 29, 2008				December 29, 2007
Assets
Cash and cash equivalents		$	120,793			$	174,236
Trade accounts receivable			541,900				575,069
Inventories			1,223,979				1,117,052
Other current assets			238,579				227,977
Total current assets			2,125,251				2,094,334
Property, net			526,498				534,286
Intangible assets and goodwill			467,980				461,691
Other noncurrent assets			350,410				349,172
Total assets		$	3,470,139			$	3,439,483
Liabilities
Accounts payable and accrued liabilities		$	669,303			$	669,405
Other current liabilities			14,562				19,577
Total current liabilities			683,865				688,982
Long-term debt			2,315,250				2,315,250
Other noncurrent liabilities			159,742				146,347
Total liabilities			3,158,857				3,150,579
Equity			311,282				288,904
Total liabilities and equity		$	3,470,139			$	3,439,483

TABLE 3

HANESBRANDS INC.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)

		Quarter Ended
		March 29, 2008				March 31, 2007
Operating Activities:
Net income		$	36,024			$	12,004
Depreciation and amortization			26,264				28,170
Other noncash items			4,434				6,723
Changes in assets and liabilities, net			(86,203	)			(47,488	)
Net cash used in operating activities			(19,481	)			(591	)
Investing Activities:
Purchases of property and equipment, net, and other			(20,510	)			(3,500	)
Financing Activities:
Net borrowings on notes payable, stock repurchases, and other			(13,740	)			(2,759	)
Effect of changes in foreign currency exchange rates on cash			288				167
Decrease in cash and cash equivalents			(53,443	)			(6,683	)
Cash and cash equivalents at beginning of year			174,236				155,973
Cash and cash equivalents at end of period		$	120,793			$	149,290

TABLE 4

HANESBRANDS INC.
Supplemental Financial Information
(Dollars in thousands, except per-share amounts)
(Unaudited)

Reconciliation of Reported Operating Results with
Certain Information Excluding Actions

		Quarter Ended
		March 29, 2008				March 31, 2007
A. Excluding actions data
Gross profit		$	347,522			$	344,946
SG&A			253,969				255,779
Operating profit			93,553				89,167
Net operating profit after taxes (NOPAT)			71,100				62,417
Net income			40,401				26,215
Earnings per diluted share			0.42				0.27
As a % of net sales
Gross profit			35.2	%			33.2	%
SG&A			25.7	%			24.6	%
Operating profit			9.5	%			8.6	%
Net income			4.1	%			2.5	%
B. Operating results excluding actions
Gross profit as reported		$	344,964			$	339,679
Accelerated depreciation included in Cost of sales			2,558				5,267
Gross profit excluding actions		$	347,522			$	344,946
SG&A as reported		$	254,612			$	254,567
Amortization of gain on postretirement benefits included in SG&A			—				2,013
Spinoff and related charges included in SG&A			—				(801	)
Accelerated depreciation included in SG&A			(643	)			—
SG&A excluding actions		$	253,969			$	255,779
Operating profit as reported		$	87,794			$	68,866
Gross profit actions			2,558				5,267
SG&A actions			643				(1,212	)
Restructuring			2,558				16,246
Operating profit excluding actions			93,553				89,167
Income tax expense at effective rate			(22,453	)			(26,750	)
NOPAT		$	71,100			$	62,417
C. Net income excluding actions
Net income as reported		$	36,024			$	12,004
Gross profit actions			2,558				5,267
SG&A actions			643				(1,212	)
Restructuring			2,558				16,246
Tax effect on actions			(1,382	)			(6,090	)
Net income excluding actions		$	40,401			$	26,215
D. EBITDA
Net income		$	36,024			$	12,004
Interest expense, net			40,394				51,717
Income tax expense			11,376				5,145
Depreciation and amortization			26,264				28,170
Total EBITDA		$	114,058			$	97,036