DEF: HanesBrands Focuses on Growth and Shareholder Value in 2025 Proxy Statement

HanesBrands outlines its strategic priorities for 2025, emphasizing growth, margin improvement, and shareholder value creation following the sale of the Champion business.

Summary

• HanesBrands delivered strong results in 2024, focusing on brand investments, global collaboration, and innovation.
• The company completed the sale of the global Champion business in 2024, using proceeds to pay down over $1 billion in debt and streamline costs.
• HanesBrands expects to continue realizing benefits from its transformation strategy in 2025, driving shareholder value through key strengths like supply chain ownership.
• Almost 75% of apparel units are produced in HanesBrands' own facilities or by dedicated contractors, enhancing cost efficiency and flexibility.
• HanesBrands products are found in nine out of ten U.S. households and rank first or second in key innerwear categories.
• The company earned leadership-level Ascores in CDP Climate Change and Water Security reports and surpassed Science-Based Targets for carbon emissions reduction seven years ahead of schedule, saving over $30 million since 2020.
• HanesBrands' strategy is guided by three principles: Simplify for Growth, Focus for Impact, and Continuously Improve to Win.
• The company is focused on expanding its core business, exploring new categories, improving cost structure, and delivering increased value for shareholders through higher returns and debt reduction.
• The 2025 Annual Meeting of Stockholders will be held on Tuesday, April 29, 2025, entirely online.
• The Board of Directors recommends stockholders vote FOR all director nominees, FOR the ratification of PricewaterhouseCoopers LLP, FOR the advisory vote on executive compensation, and FOR the amendment of the Hanesbrands Inc. 2020 Omnibus Incentive Plan.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for HanesBrands, highlighting strong financial results, strategic initiatives, and a commitment to shareholder value. The completion of the Champion divestiture and focus on core business areas contribute to a favorable sentiment.

Positives

• Strong profit margin expansion driven by lower input costs and cost savings initiatives.
• Significant debt paydown of over $1 billion in 2024.
• Market share gains in innerwear and attraction of younger consumers.
• Leadership in sustainability with Ascores in CDP reports and surpassing carbon emission reduction targets.
• Successful multi-year transformation to a global operating company.
• Revenue trend improvement with topline year-over-year growth in the fourth quarter.
• Simplified and focused business through strategic actions like the Champion divestiture.

Future Outlook

HanesBrands is well-positioned to build on its momentum and drive transformational growth, focusing on expanding its core business, exploring opportunities in new categories, and improving its cost structure.

Management Comments

• The legacy of HanesBrands has never been stronger, and we are excited to embark on the next chapter of growth and success.
• We delivered strong results in 2024 across all of our key metrics, and we entered 2025 with a strong foundation, clear direction, and good momentum to create shareholder value.
• HanesBrands today is a more consumer-centric global operating company better prepared and strategically positioned to leverage our brands, innovation, marketing, talent, and supply chain capabilities around the world.

Industry Context

HanesBrands is positioning itself as a global powerhouse in basic apparel and innerwear, differentiating itself through supply chain ownership, brand recognition, and ethical business practices in a competitive apparel industry.

Comparison to Industry Standards

• The document compares Hanesbrands' governance practices to the Corporate Governance Principles published by the Investor Stewardship Group (ISG), finding them highly consistent.
• The peer group used by the Committee for purposes of determining fiscal 2024 compensation consisted of 17 companies: American Eagle Outfitters, Inc., Bath and Body Works, Inc., Capri Holdings Ltd., Carters, Inc., Foot Locker, Inc., Gildan Activewear, Inc., Kontoor Brands Inc., Levi Strauss & Co., Lululemon Athletica Inc., Newell Brands Inc., PVH Corp., Ralph Lauren Corporation, Tapestry, Inc., The Gap, Inc., Under Armour, Inc., V.F. Corporation, and Victorias Secret & Co.

Management Changes

Stakeholder Impact

• Shareholders will benefit from increased value through higher returns and debt reduction.
• Employees will have access to training and development opportunities.
• Customers will continue to receive high-quality, innovative products.
• The company strives to build an inclusive culture for all employees.

Next Steps

• Announce updated sustainability goals in light of the Champion divestiture.
• Continue philanthropic efforts in the themes of comfort and health.
• Drive consumer and other stakeholder awareness of our impacts in sustainability.

Key Dates