SCHEDULE: Loews Boosts Hanesbrands Stake to 9%

Loews Corporation has increased its beneficial ownership in Hanesbrands Inc. to 9%, acquiring an additional 10.265 million shares for investment purposes.

Summary

• Loews Corporation, the Reporting Person, has increased its beneficial ownership in Hanesbrands Inc. (the "Issuer") to 31,900,000 shares of Common Stock.
• This represents 9.0% of the Issuer's 353,731,138 outstanding shares as of June 28, 2025.
• Loews acquired an additional 10,265,000 shares between February 14, 2025, and August 12, 2025.
• The cost of these additional shares was $49,304,124, funded by cash on hand.
• The filing changed from Schedule 13G to Schedule 13D due to the increased ownership, requiring more detailed disclosure.

Sentiment

Score: 7

Explanation: The increased stake by a significant investor like Loews Corporation, coupled with their stated intent to potentially engage with management on strategy and governance, suggests a positive long-term view on Hanesbrands. While not a direct endorsement of Hanesbrands' current performance, it indicates a belief in its underlying value or potential for improvement.

Positives

• Loews Corporation, a diversified holding company, has increased its stake in Hanesbrands, signaling confidence in the Issuer's long-term value.
• The acquisition of additional shares for investment purposes suggests a belief in the Issuer's future prospects.
• Loews has the financial capacity, using cash on hand, to increase its investment.

Future Outlook

Loews Corporation acquired the Issuer's Common Stock for investment purposes and regularly reviews the Issuer's business, performance, financial condition, and future prospects. Loews reserves the right to engage in communications with the Issuer's board, officers, or shareholders regarding operations, governance, business, strategy, or control, including potential strategic transactions. Loews may also consider acquiring additional shares or selling its current holdings.

Management Comments

• The Reporting Person acquired the Issuer's Common Stock for investment purposes.
• The Reporting Person regularly reviews the Issuer's business, performance, financial condition, results of operations, and anticipated future developments and prospects, as well as general economic conditions and existing and anticipated market and industry conditions and trends affecting the Issuer.
• The Reporting Person may engage in communications with and express its views to, without limitation, one or more members of the board of directors of the Issuer, one or more officers of the Issuer, one or more shareholders of the Issuer, or other third parties or the public, regarding the Issuer, including but not limited to the Issuer's operations, governance, business, strategy or control, including actual or potential strategic transactions involving the Issuer, or plans or proposals which relate to or could result in any of the matters listed in paragraphs (a) through (j) of the instructions to Item 4 of Schedule 13D.

Industry Context

This increased stake by a diversified holding company like Loews in an apparel company like Hanesbrands could signal a belief in the long-term stability or potential turnaround of the consumer goods sector, particularly in established brands. It may also reflect a value investment strategy given current market conditions.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess Hanesbrands' performance against industry standards. Loews' investment decision is based on its internal assessment of Hanesbrands.

Corporate Governance

Stakeholder Impact

• Shareholders: Loews' increased stake and potential active engagement could lead to strategic changes or improved governance, potentially benefiting other shareholders if the investment proves successful.
• Management: Loews' stated intent to communicate with management regarding strategy and governance could lead to increased scrutiny or collaboration.

Next Steps

• Loews Corporation may engage in communications with Hanesbrands' board, officers, or shareholders regarding operations, governance, business, strategy, or control.
• Loews Corporation reserves the right to consider, study, formulate, and actively participate in plans or proposals regarding Hanesbrands.
• Loews Corporation may acquire additional shares or sell all or a portion of its current holdings in Hanesbrands.

Key Dates

Recommendation

Loews Corporation's increased stake to 9% and its shift to a Schedule 13D filing indicate a more active investment approach, potentially signaling a belief in Hanesbrands' long-term value or a potential catalyst for change. However, the filing itself does not provide new financial performance data for Hanesbrands, nor does it detail specific strategic plans from Loews. While the increased institutional interest is a positive signal, a "hold" recommendation is appropriate as investors should await further developments regarding Loews' engagement with Hanesbrands' management and any subsequent strategic announcements or financial results from Hanesbrands before making a stronger directional call. The investment is for "investment purposes" and Loews "reserves the right to change its intentions," which adds a layer of uncertainty.

Keywords

Hanesbrands, Loews Corporation, Schedule 13D, beneficial ownership, common stock, investment, apparel, consumer goods, equity stake