Investing.com -- Shares in Hanesbrands Inc (N:HBI) plummeted more than 10% in after-hours trading, amid sliding revenues over its last quarter and a weak forward guidance offered by the American clothing company on Thursday afternoon.
During Hanesbrands' fourth quarter of fiscal year 2015, the Winston Salem, North Carolina-based saw its revenues decline by 7% in the face of slumping core sales, and declining retail traffic. Hanesbrand, which owns several clothing brands, including Hanes, Champion, Playtex, women's brassieres and L'eggs, also suffered major losses among its Direct to Consumer and International segments last quarter. Over the three-month period, the two divisions saw their earnings plunge 56.4% and 17.7% to $4.94 and $30.056 million respectively.
In total, Hanes reported net profits of $119.2 mil or 0.30 per share on sales of $1.41 billion for the quarter. By comparison, the company posted earnings of $89.4 million or 0.22 per share in the same quarter a year earlier. Analysts expected per share earnings of 0.46 on revenues of $1.53 billion.
In spite of the disappointing quarter, Hanes finished with its third consecutive year of record net sales, adjusted operating profit and adjusted earnings per share.
“We delivered our third consecutive record year in 2015, although we are disappointed with our fourth-quarter performance,” Hanes Chairman and Chief Executive Officer Richard Noll said in a statement.
Hanes, which is probably best known for its endorsement deal with Michael Jordan, continues to maintain a business relationship with the former five-time NBA most valuable player that dates back to 1992. Last summer, Jordan was ordered by a U.S. federal judge to disclose his career earnings from the company, as well as endorsements from several others, including Nike Inc (N:NKE), Gatorade and Upper Deck. Jordan's long-term deal with Hanes has netted him $14 million over the past two decades, which is third behind Nike and Gatorade. In 2006, Hanes was spun off from Sara Lee Corporation, which subsequently merged with Tyson Foods (N:TSN).
Moving forward, Hanes projects full-year sales of $5.8 to $5.9 billion in 2016 on earnings per share of 1.85 to 1.91. Analysts forecasted full-year revenues of $6.04 billion on 1.90 per share.
“For 2016, I feel confident in our growth expectations and outlook for a fourth consecutive year with a double-digit increase in adjusted EPS," Noll added.
Shares in Hanes slid 3.30 or 11.21% to 26.10 in after-hours.