Hanesbrands Inc. (HBI) is a manufacturer and marketer of innerwear, outerwear, and hosiery apparel, which are sold under the brand names of Hanes, Champion, Playtex, Bali, Just My Size, Barely There, L'eggs, Outer Banks, and Wonderbra. Approximately 90% of the company s sales are in the United States. The company was spun off from Sara Lee Corporation (SLE).Management's business model requires only modest sales growth to create substantial EPS growth. Earnings are being driven by brand building and cost-reduction initiatives. Since the spin-off in September 2006, the company has reduced debt by $285 million, lowering interest expense from the post spin-off financial structure.However, management is reporting non-GAAP EPS, which excludes unusual actions, which may be distorting perceived earnings. The Buy rating is maintained due to valuation.Read the full analyst report on HBI Read the full analyst ...

Alexander Eule, a  Barron’s analyst, recommended Hanesbrands:

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a. HANESBRANDS IS NOT SEEING much in the way of sales growth these days, but the underwear maker still has much to offer on the bottom line.

b. Last year, Hanesbrands sold $4.5 billion worth of underwear, T-shirts, socks, intimate apparel and athletic wear. The company’s brands include Hanes, Champion, Just My Size, Playtex, Bali, Barely There, L’eggs and Wonderbra. The company says it ranks first or second by U.S. sales in each of its core categories.

c. many investors remain skeptical, a sentiment that was supported in late July by Hanes’ less-than-stellar second-quarter results, which included a 4.4% sales decline. Shares tumbled 18% on the news before settling at a 52-week low of $21.38 on Aug. 1.

c. Chief Executive Officer Richard Noll concedes the company needs to sharpen its focus when it comes to

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