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HanesBrands lifts on earnings beat, margin growth

A customer at a Target store in Chicago, Illinois shops for Hanes underwear.
Tannen Maury | Bloomberg | Getty Images
A customer at a Target store in Chicago, Illinois shops for Hanes underwear.

Shares of HanesBrands were up roughly 2 percent on Friday after the company posted better-than-expected earnings after Thursday's market close. The stock closed up 1.3 percent Friday.

Hanes reported earnings of 26 cents per share on $1.22 billion in revenue for the quarter. Analysts had expected the company to post earnings of 22 cents per share on $1.21 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company also saw its adjusted operating profit margin increase by 110 basis points to 12.1 percent of sales. Hanes reaffirmed its full-year guidance and continues to expect earnings of $1.85 to $1.91 per share.

The company did say that its current guidance does not reflect its planned acquisition of Champion Europe which it announced earlier in April. Hanes said it would update its guidance, following the closing of the deal.

Analysts have an average price target of $35.43 on HanesBrands, according to FactSet. The average price target for Hanes stock represents an upside of 25 percent from the Thursday close of $28.18.

Shares of HanesBrands are down more than 15 percent over the last 12 months.

HBI shares in the last 12 months

Source: FactSet