Parnassus Comments on Hanesbrands

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Aug 09, 2022
Summary
  • A top detractor.
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Hanesbrands (

HBI, Financial), a global manufacturer of inner and activewear, slid -30.1% in the quarter, reducing the Fund’s return by -0.4%. The company is facing an incrementally more-challenging global macro environment, with higher input and freight costs expected for the rest of the year. As such, management no longer expects a second half margin expansion, and now forecasts earnings to be at the low end of its prior annual guidance. Investors are also concerned that excess inventory across some of the company’s wholesale partners, like Walmart and Target, may lead to slower ordering, potential canceled orders and additional markdowns to balance inventory.

From

Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio)'s second-quarter 2022 commentary.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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