Hanesbrands Q3 Earnings: 8.5% Dividend Is Compelling Despite Ongoing Headwinds (NYSE:HBI) - Seeking Alpha

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HBI has embarked on an ambitious "full potential" campaign to reduce costs and streamline the company to maintain high levels of revenue growth in a slow-growth segment. This also focuses on balance sheet improvement to a sub-2.0x Debt-to-EBITDA ratio (currently at 3.7x). The amount of unique products offered by HBI count has decreased, focusing instead on lower cost and high sales items. Fewer SKUs result in greater efficiency and, hopefully better margins. By 2024 HBI's cost-saving initiative is hoped to increase revenue CAGR to 6% and raise the operating margin to 15% (currently at 8.5%).

seekingalpha.com     Nov 16, 2022