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Hanesbrands' (HBI) CEO Rich Noll on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Conference Call

April 21, 2016 16:30 ET

Executives

T. C. Robillard - Chief Investor Relations Officer

Rich Noll - Chief Executive Officer

Gerald Evans - Chief Operating Officer

Rick Moss - Chief Financial Officer

Analysts

Eric Tracy - Brean Capital

Omar Saad - Evercore ISI

Susan Anderson - FBR & Company

Michael Binetti - UBS

David Glick - Buckingham Research

Taposh Bari - Goldman Sachs

John Kernan - Cowen & Company

Ike Boruchow - Wells Fargo

Anna Andreeva - Oppenheimer

Simeon Siegel - Nomura Securities

Operator

Good day, ladies and gentlemen and welcome to the Hanesbrands First Quarter 2016 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the meeting over to T. C. Robillard, Chief Investor Relations Officer. Please go ahead.

T. C. Robillard

Good day, everyone and welcome to the Hanesbrands quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress after the first quarter of 2016. Hopefully, everyone has had a chance to review the news release we issued earlier today. The news release, updated FAQ document and the replay of this call can be found in the Investors section of our hanes.com website.

On the call today, we may make forward-looking statements, either in our prepared remarks or in the associated question-and-answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. These risks are detailed in our various filings with the SEC and maybe found in our website as well as in our news releases. The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made. Unless otherwise noted, today’s references to our consolidated financial results as well as our 2016 guidance exclude all one-time charges and expenses. Additional information, including a reconciliation of these and other non-GAAP performance measures to GAAP can be found in today’s press release.

With me on the call today are Rich Noll, our Chief Executive Officer; Gerald Evans, our Chief Operating Officer; and Rick Moss, our Chief Financial Officer. For today’s call, Rich, Gerald and Rick will provide some brief remarks and then we will open it up to your questions.

I will now turn the call over to Rich.

Rich Noll

Thank you, T.C. Hanesbrands delivered strong first quarter results as revenue increased 1%, operating profit increased 10% and earnings per share increased 18%. Our ability to consistently magnify our growth rates as you walk down the P&L demonstrates that our strategy to create long-term shareholder value, are working. We are driving innovation in our categories. We are generating efficiencies within our supply chain. We are enhancing our margins and we are effectively allocating our capital.

Within the first 100 days of 2016, we increased our dividend 10%, repurchased $380 million of stock and announced the acquisition of Champion Europe. Overall, the year is unfolding as we expected. Point-of-sale trends have rebounded from their severely negative levels in Q4. Our acquisition synergies are ramping on schedule and our initiatives to reenergize sales growth are on track. All of this gives us confidence in our ability to achieve our 2016 guidance. Add to this our continued focus on executing our long-term strategies and we believe we are well-positioned to deliver double-digit EPS growth for many years to come.

And with that, I will turn the call over to Gerald.

Gerald Evans

Thanks, Rich. We delivered solid results for the first quarter, but more importantly, we made significant progress on our sales initiatives, our inventory actions and our integrations.