Hanesbrands Inc HBI

Hanesbrands’ Actions Are Supporting Its Innerwear Brands and Financial Health

Hanesbrands is the market leader in basic innerwear in multiple countries. We believe its key innerwear brands, like Hanes and Bonds in Australia, achieve premium pricing. Our narrow moat rating on the company is based on a brand-based intangible asset. While the firm faces challenges from inflation, slowing demand for apparel, higher interest rates, and a highly competitive athleisure market, we think Hanes' share leadership in replenishment apparel categories puts it in position for improving results in the coming years. In May 2021, the firm unveiled its Full Potential plan to bring growth back to innerwear, improve connections to consumers (through greater marketing and enhanced e-commerce, for example), and streamline its portfolio.