• Hanesbrands Inc. has reported its third quarter 2025 earnings, revealing sales of US$891.68 million and net income of US$270.74 million, a sharp increase from US$29.95 million a year earlier.

• This turnaround from a net loss to solid profitability over both the quarter and nine-month period marks a significant operational improvement for the company.

• We’ll review how Hanesbrands’ substantial rebound in net income this quarter influences its broader investment narrative and future prospects.

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For an investor to back Hanesbrands, confidence in the company’s ability to sustain operational momentum while addressing challenges in its core intimates segment is key. The recent surge in net income, despite flat sales growth, may strengthen optimism around margin recovery, but concerns linger over whether these gains can be maintained without further top-line improvement. Right now, the most important catalyst is Hanesbrands’ ability to consistently expand earnings through operational efficiencies, while the biggest risk remains ongoing softness and competition within core categories, especially Maidenform. The latest results provide a boost to the short-term narrative, though the impact on the long-term risk profile appears limited.

Amid these performance gains, the announced merger agreement with Gildan Activewear on August 13, 2025, stands out. This proposed transaction adds a layer of uncertainty, as it could reshape Hanesbrands’ future strategy and financial outlook, directly affecting near-term catalysts such as margin expansion and growth investments. As shareholders await closure of the deal, sustained operational improvement may factor into negotiations or influence post-acquisition direction.

By contrast, investors should be aware that even with strengthening margins and earnings, the risk of prolonged weakness in the U.S. intimates market means sustained revenue growth is not guaranteed…

Read the full narrative on Hanesbrands (it’s free!)

Hanesbrands is projected to generate $3.6 billion in revenue and $274.0 million in earnings by 2028. This scenario assumes a yearly revenue decline of 0.4% and a $104 million increase in earnings from the current $170.0 million.

Uncover how Hanesbrands’ forecasts yield a $6.47 fair value, in line with its current price.

Three community estimates for Hanesbrands’ fair value range widely, from US$6.43 to US$8.03 per share. While you weigh these differing views from the Simply Wall St Community, remember that persistent slow growth in the core segment could shape the company’s longer-term trajectory.