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Hanesbrands shares tumble to near 3-year low after weak earnings, guidance

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

Shares of underwear maker Hanesbrandsshed 16 percent Friday following an underwhelming earnings report and weak guidance for 2017. 

The drop brought shares to levels not seen since April of 2014, a near 3-year low.

The company announced earnings of 53 cents per share and sales of $1.58 billion on Thursday. Analysts had expected earnings per share of 58 cents and revenue of $1.7 billion, according to Thomson Reuters consensus estimates.

Five-day performance of Hanesbrands

"Our business model allowed us to deliver benefits to shareholders, even though our record-high financial results fell short of our expectations as a result of unanticipated fourth-quarter retail weakness," Hanesbrands CEO Gerald W. Evans Jr. said in the earnings release. 

"Despite the challenging environment, we were able to manage inventory and generate cash, returning nearly $550 million to shareholders through quarterly cash dividends and share repurchases.

Hanesbrands said for fiscal 2017, it expects earnings per share of $1.93 to $2.03. That range falls short of analyst expectations for about $2.14 a share, according to a Thomson Reuters consensus estimate. Sales projections of $6.45 billion to $6.55 billion also missed the mark, with analysts expecting revenue of $6.68 billion.

With Friday's declines, shares of Hanesbrands are down 37 percent over the past three months.