Hanesbrands Inc.’s HBI first-quarter 2016 earnings per share of 26 cents beat the Zacks Consensus Estimate of 22 cents by 18.18%. Earnings also improved 18% year over year on higher margins, thanks to the Innovate-to-Elevate strategy.The strategy focuses on value-added, high-priced and higher-margin items that can be supplied at lower costs. Benefits from the company’s back-to-back acquisitions also contributed to the earnings growth.The adjusted earnings exclude $25 million and $43 million of pre-tax charges related to acquisitions and other actions in the fourth quarters of 2016 and 2015. Hanesbrands Inc. (HBI) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyRevenues and Operating ProfitsQuarterly revenues inched up 1% to $1.22 billion, backed by higher sales in Innerwear and Activewear categories and contributions from the Knights Apparel business. On a constant currency basis and excluding the effects of the acquisitions and exit of a retailer in Canada, sales gained 2%. Revenues were in line with the Zacks Consensus Estimate during the quarter.Gross profit gained 0.4% to $462.1 million backed by higher sales. Gross margin, however, shrank 20 basis points (bps) to 37.9% due to lower cost of sales. Adjusted operating profit went up 10.4% to $147.1 million, driven by lower selling, general and administrative expenses. Operating margins inflated 110 bps to 12.1%. Operating profits were also boosted by the Innovate-to-Elevate strategy. Segment DetailsFollowing the changes made at the managerial level, the company announced plans of shifting its wholesale e-commerce business from the Direct to Consumer segment to the respective Innerwear and Activewear segments in the first quarter of 2016.Innerwear: Sales increased 1.3% year over year to $560.72 million buoyed by strong sales at the mass channels. Operating profits increased 1.6% supported by synergies from Maidenform (acquired in Oct 2013) and the Innovate-to-Elevate strategy.Activewear: Sales grew 2.8% from the year-ago quarter to $309.52 million due to higher sales at the sports license apparel business and attribution of the Knights Apparel business. Operating profits went up 4.5% on lower administrative expenses.International: Segmental sales went up 3% on a constant currency basis to $279.1 million owing to higher sales in Japan, Mexico and Canada. The company completed the integration of Champion Japan, acquired in May 2015, which boosted Japan sales by approximately $140 million in the quarter. Operating profits rose 15% because of lower selling, general and administrative expenses.Direct to Consumer: Sales decreased 1.9% to $69.8 million and operating income plunged 33.3% to $3.02 billion.Full-Year 2016 Guidance Hanesbrands maintained its fiscal 2016 guidance. The company is optimistic about the Knights Apparel acquisition (made in Apr 2015) and expects higher profits from DBApparel (acquired in Sep 2014) as well. However, the company expects negative currency effects to prevail in the quarters ahead.For fiscal 2016, Hanesbrands expects double-digit earnings growth. Earnings per share are projected between $1.85 and $1.91, up 11% to 15%. Net sales are expected to be $5.8 billion to $5.9 billion, up 1% to 3%. Operating profit is projected in the range of $920 million to $950 million, up 7% to 10% from the year-ago tally.Hanesbrands has a Zacks Rank #3 (Hold). Better-ranked stocks in the textile apparel industry include Columbia Sports Inc. COLM and Delta Apparel Inc. DLA, both carrying a Zacks Rank #2 (Buy). Another stock in the consumer discretionary sector worth considering is NU Skin Enterprises Inc. NUS with a Zacks Rank #2.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NU SKIN ENTERP (NUS): Free Stock Analysis Report COLUMBIA SPORTS (COLM): Free Stock Analysis Report HANESBRANDS INC (HBI): Free Stock Analysis Report DELTA APPAREL (DLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research