I added more to my position in Hanesbrands Inc (HBI) today at $20.766/share. Took advantage of today’s price drop due to First-Quarter 2017 Financial Results.
However, they reported in line with what they expected. The results should have been expected. The issue is the 4% drop in organic sales due primarily to lower sales in the innerwear business, which they expect to normalize in the 2nd quarter. Increases in online business helped reduce the drop.
The company also plans to continue acquisitions which should help end the year with a small increase in sales.
Management also discussed Project Booster, which is their program to drive investment for sales growth, cost reduction and increased cash flow. Results should help improve margins and overall profits.
Since I already have a good size position, I may sell some shares if the price should pop in the near term. I think at this level, it’s a good opportunity. My opinions on this company have not changed.