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In a strategic financial move, Hanesbrands (NYSE:HBI) Inc., a leading apparel retailer with a market capitalization of $2.7 billion, announced today its decision to redeem all of its outstanding 4.875% Senior Notes due 2026. The redemption, involving notes with an original aggregate principal amount of $900 million, is scheduled for March 17, 2025. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 1.49.
The company has instructed U.S. Bank Trust Company, National Association, as trustee under the indenture governing the Notes, to issue a conditional notice of redemption to the registered holders. The redemption price is set at 100% of the principal amount of the Notes, in addition to the applicable premium and any accrued and unpaid interest up to but not including the redemption date.
This financial maneuver is contingent upon Hanesbrands completing one or more debt financings by the redemption date. These financings must be on terms acceptable to the company and generate net proceeds sufficient to cover the full redemption price, as well as all related fees and expenses.
The announcement made today does not serve as an official notice of redemption for the Notes. Hanesbrands’ action aligns with its broader financial strategy, as the company continues to navigate the competitive retail apparel market. The information reported is based on a press release statement from the company.
In other recent news, HanesBrands reported fourth-quarter earnings that surpassed analyst expectations, but fell short on revenue, which led to a decrease in the company’s stock. The company also announced that CEO Steve Bratspies will step down by the end of 2025 or when a successor is appointed. The apparel manufacturer posted adjusted earnings per share of $0.17, surpassing the analyst estimate of $0.14, but revenue for the quarter came in at $888.47 million, missing the consensus estimate of $899.73 million.
HanesBrands provided guidance for the first quarter of 2025, projecting EPS of $0.02, below the consensus of $0.03, and expects Q1 revenue of $750 million, falling short of analysts’ expectations of $785.3 million. For the full year 2025, HanesBrands forecasts EPS between $0.51 and $0.55, compared to the consensus of $0.52, and anticipates revenue of $3.47-3.52 billion, below the analyst estimate of $3.633 billion. These are among the recent developments that have been influencing investor sentiment.
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