July 29, 2008 / 9:25 PM / 10 years ago

UPDATE 1-Hanesbrands Q2 results miss estimates; shares sink

(Recasts, adds details, background, share movement)

July 29 (Reuters) - Hanesbrands Inc’s (HBI.N) second-quarter results missed Wall Street estimates as lackluster sales at its innerwear segment offset its gains from lower restructuring costs, sending the apparel maker’s shares down more than 18 percent.

The company, which has been moving manufacturing to lower-cost offshore regions to cut costs, said the sales fall was reflective of the challenging retail sales environment for apparel and the delay in back-to-school shipments.

Hanesbrands, whose brands include Hanes, Bali, Champion, Playtex and Wonderbra, reported a net profit of $57.3 million, or 60 cents a share, compared with $25.4 million, or 26 cents a share, a year earlier.

Excluding items, the Winston-Salem, North Carolina-based company earned 65 cents a share, helped by a lower tax rate and reduced interest expense on long-term debt.

Total net sales fell 4.4 percent to $1.07 billion.

Analysts on average had expected earnings of 71 cents a share before special items, on revenue of $1.10 billion, according to Reuters Estimates.

Shares of Hanesbrands, which was spun off from Sara Lee Corp SLE.N in 2006, were down $5.01 at $22.25 in trading after the bell. They had closed at $27.26 Tuesday on the New York Stock Exchange. (Reporting by Dhanya Skariachan in Bangalore; Editing by Gopakumar Warrier)

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