How to Become a Millionaire by Investing $700 per Month – Part 6/360

Rejected at 4,200.

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So I’d call that a 200-point run (from 4,000) so retraces would be 40-points to 4,160 (weak) and 4,120 (strong). We’ll see what lasts into the weekend.

For the Nas, it was 13,000 from 12,000 – hopefully the math is obvious.

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Oil gaining no ground at $75.87 and neither is /NG at $2.486.

Wow, I found another use for OpenAI:

I said:

Please summarize the following earnings call: “Good day, everyone, and welcome to the Hanesbrands quarterly investor conference call and webcast. We’re pleased to be here today to provide an update on our progress after the fourth quarter of 2022. Hopefully, everyone has had a chance to review the news release we issued earlier today. The news release, updated FAQ document and the replay of this call can be found in the Investors section of our hanes.com website.

On the call today, we may make forward-looking statements either in our prepared remarks or in the associated question-and-answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. These risks include those related to current macroeconomic condition, consumer demand dynamics, the inflationary environment, cybersecurity and our previously disclosed ransomware incident and any on-going impact of the COVID-19 pandemic. These risks also include those detailed in our various filings with the SEC, which may be found on our website as well as in our news releases. The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made.

Unless otherwise noted, today’s references to our consolidated financial results and guidance exclude all restructuring and other action-related charges and speak to continuing operations. Additional information, including a reconciliation of these and other non-GAAP performance measures to GAAP, can be found in today’s news release. Any references to 2019 reflects rebase 2019 results consistent with prior disclosures and can be found in our investor relations website.

With me on the call today are Steve Bratspies, our Chief Executive Officer; Michael Dastugue, our Chief Financial Officer and Scott Lewis, our Chief Accounting Officer. For today’s call, Steve and Michael will provide some brief remarks, and then we’ll open it up to your questions.

I’ll now turn the call over to Steve.

Steve Bratspies

Thank you TC. Good morning everyone, and welcome. For the quarter, Hanesbrands delivered sales that were above the high end of our forecast and adjusted operating profit and earnings per share that were essentially at the midpoint of our range. I’d like to start by thanking all of our associates around the world. The Global operating environment has been anything but easy over the last three years.

However, despite the significant volatility and uncertainty through their dedication and hard work, we’ve been able to deliver for our consumers, serve our retail partners, and continue to progress on our full potential plan. I’m most grateful and proud of their tremendous efforts.

While I’m pleased we delivered on our guidance under difficult operating conditions, we expect the macro economic challenges impacting consumer demand and the lingering pressure from inflation to continue in 2023, particularly in the first half. Consistent with the mind-set we’ve adopted since my first day, we’re not standing still. We’ll continue a proactive approach, remain agile and continue to adapt. Focusing on the things we can control and taking action allows us to manage their short-term challenges, while at the same time continue to implement our long-term transformation strategy.

To that end, there are three important topics I’d like to discuss today. First, the near term actions we’re taking toward reducing our leverage and strengthening our balance sheet. Second, the path to higher margins and operating cash flows as the year unfolds, including actions to mitigate near term macro related challenges. And third, an update on the implementation and progress of our full potential plan.

Let me walk you through each of these beginning with our strategic actions to strengthen the long-term financial foundation of the company. Today, we announced we’re shifting our capital allocation strategy, eliminating the dividend and committing to reducing debt. To be clear, investing in the business and our full potential growth plan remains the priority for capital allocation. And we believe we are well positioned to fund these investments through operating cash flow.

What’s changing is the allocation of our free cash flow, which will now fully direct toward accelerating debt reduction. This decision was not made lightly. And we believe that a meaningful reduction in our debt will drive significantly higher shareholder returns long-term.

We also updated our credit facility management to drive greater near term flexibility, given the uncertain macroeconomic environment. Michael will discuss this further in his section. In addition to these actions, we expect to refinance our 2024 maturities in the first quarter of this year, subject to market conditions.

Turning to margins and cash flow, we see the path to higher margins and operating cash flow as the year unfolds. The lower cost inventory we’re currently producing should begin to hit our P&L in the second half, particularly in the fourth quarter. We’ll anniversary last years’ time out costs, and we’re well positioned to benefit from the actions we’re taking to help mitigate the near term macro related challenges.

Looking at our mitigation actions, last year we set an aggressive target to reduce our inventory units by the end of 2022, which we accomplished. This created a short term drag on second half gross margins as we took time out in our manufacturing facilities. However, by taking this action, we believe we’re well positioned to release working capital and drive operating cash flow this year.

We also began and expanded upon a number of cost savings initiatives, including exiting unproductive facilities, consolidating sourcing vendors, and aggressively managing SG&A. Looking to 2023 we’re building on these initiatives with additional cost reductions as well as prudent investment management.

We reduced corporate headcount in January. We’re expanding our savings actions across our procurement operations, including contract renegotiations, and we’re strategically managing our investments to align with the current macro environment, just to name a few.

We believe the combination of these actions positions us to generate approximately $500 million in operating cash flow in 2023, to exit the year with a meaningfully higher run rate for both gross and operating margins, and to operate more efficiently, which unlocks long term growth.

Lastly, I’d like to touch on our full potential plan. Our long-term strategy is fundamentally unchanged. The plan we are executing is right, and our long-term financial targets remain. However, given the realities of the near-term, macroeconomic and consumer demand environment, our timetable has shifted to the end of 2026.

Though the timeline has shifted, we’re confident in our ability to deliver $8 billion of sales, and he made 14% operating margin. Our confidence is reinforced by the improvements we’ve made in the way our business operates. We’ve added new capabilities across the organization and exited non-strategic businesses. We’ve enhanced our inventory and demand planning processes as well as streamlined our innovation process and innerware, which began to bear fruit with the launch of our Hanes originals product.

We’ve improved the go-forward efficiency and effectiveness of our supply chain. We reduce global skews by 45% since 2019, as well as exited unproductive facilities. We’re consolidating distribution centers, and we’re generating high single digit savings rates in our sourcing and procurement operations. Plus, we’re continuing our technology investments to improve our data analytics, drive global integration, efficiency, and ultimately lower costs. We’ve also changed leadership and our global activewear business, the new team is moving fast. They’re streamlining the operating model, including global coordination of product design and merchandising, increased speed to market and portfolio simplification.

This in turn is expected to drive a more focused global product and channel segmentation strategy that provides greater clarity to retailers and consumers as well as improves the long-term health of both the Champion and Hanes activewear brands. It’s also expected to build the right foundation to drive revenue and margin growth well beyond the timeline of our full potential plan.

We’ve accomplished a lot. There’s no doubt that we’re a better, more disciplined operating company today than we were just two years ago. But we’re not done. And we’ll continue to make progress this year. So in closing, we’ll continue our proactive approach, remain agile, and continue to adapt to serve our customers innovate and reduce costs while continuing to execute our long-term transformation strategy. We’re making progress, and we see the path to improving cash flow and margins as the year unfolds.”

And it said:

The Hanesbrands quarterly investor conference call was held to provide an update on their progress after the fourth quarter of 2022. The company made forward-looking statements and discussed the macroeconomic challenges impacting consumer demand and lingering pressure from inflation in 2023, particularly in the first half. The CEO discussed three important topics: reducing leverage and strengthening the balance sheet, the path to higher margins and operating cash flows, and an update on the implementation and progress of their full potential plan. The CEO announced a shift in their capital allocation strategy, eliminating the dividend and committing to reducing debt. The CEO also discussed actions taken to reduce costs, increase margins and operating cash flows, and position the company for long-term success.

You could make a nice living on Seeking Alpha just doing summaries of all the earnings calls!

I was seeing if OpenAI can find out about people and it’s pretty bad at that unless they are in the public eye. It did work when I asked it: “Can you tell me about Phil Davis of philstockworld.com?”

It said:

Phil Davis is the founder and CEO of PhilStockWorld.com, a financial news and analysis website that focuses on individual investors and traders. With over 25 years of experience in the industry, he is known for his expertise in trading and investing, as well as his analysis and commentary on the stock market and individual stocks.

Davis has a large following of investors who value his insights and follow his investment strategies. He has made a reputation for himself as an experienced and knowledgeable investor and is widely respected in the financial community.

Phil Davis is known for his use of options trading strategies and his insights into market trends and investment opportunities. He provides daily market analysis and trading advice to his subscribers through his website, which is designed to help people make informed investment decisions.

That’s a pretty good bio!