Hanesbrands Inc. ( HBI ) shares are trading higher on Thursday.

The company reported a first-quarter adjusted loss per share of two cents, narrower than the analyst consensus for a loss of 7 cents. 

Quarterly revenues of $1.156 billion missed the street view of $1.185 billion. As compared to prior year, net sales decreased approximately 17%, with approximately 120 basis points due to the U.S. Sheer Hosiery divestiture and approximately 105 basis points due to the unfavorable impact from foreign exchange rates. 

Innerwear sales decreased 8%, while Activewear sales decreased 31%. 

Adjusted gross profit was $461 million, representing an increase of approximately 2% over prior year. Adjusted gross margin jumped 720 basis points to 39.9%.

This was driven primarily by lower input costs as commodity and ocean freight inflation moderated, the benefits of cost savings initiatives, and the impact from business mix.

Adjusted operating profit of $84 million increased 32% over prior year, which was above the company’s outlook. Adjusted operating margin of 7.3% increased approximately 270 basis points.

Outlook: Hanesbrands ( HBI ) reiterated FY24 Outlook. The company sees an adjusted EPS of $0.42-$0.48 versus an estimate of $0.43. Sales is projected in the range of $5.350 billion-5.470 billion versus $5.33 billion estimate.

HanesBrands ( HBI ) sees second-quarter adjusted EPS of $0.07-$0.11 versus the $0.10 estimate. The company sees sales of $1.335 billion-$1.375 billion versus $1.345 billion estimate.

Price Action: HBI shares are trading higher by 5.49% to $4.705 at last check Thursday.