Hanesbrands Inc. (NYSE:HBI) Q4 2022 Earnings Call Transcript

Scott Lewis: Good morning Carla. Thanks for the question there on the SG&A. I think you are exactly right. The dollars are up and there’s some puts and takes for SG&A. And a couple things to consider from a higher cost standpoint. We will have higher incentive, variable compensation cost in 22. We didn’t have a payout in line with a performance as we move into 23 weeks back to the how to pay out there, so you have a higher cost associated with that, and also have a higher technology investments. So we’re going to continue to invest moving forward with our technology transformation initiatives that will have those offsetting that is what Steve mentioned earlier, we are in laser focused on controlling cost to action in January. The corporate headcount actions, they are to reduce costs they are. So we are against laser focus on cost control discretionary spending from a leverage standpoint, and then over the course of the year, that should improve as the sales comparison.

Carla Casella: Okay. And then just one on the amendment. Just because I don’t I can’t find the document yet. But you say you’ve increased the flexibility by one to one and a half, or one to one and a half turn over the next three quarters. So we assume that goes up by one in the first quarter and then by one and a half, and then and a two kind of peak quarters. Is that the way to think about it?

Scott Lewis: Yes. So, as an example, Q1 of 23 goes to 6.75. Q2 goes to 7.25. Q3 goes to 6.75. Q4 goes to 5.25. Q1 of 2024 goes to 5. And then the amendment period is over.

Carla Casella: Okay.

Operator: That concludes today’s question-and-answer session. I’d like to turn the call back to TC Robillard for closing remarks.

TC Robillard: We like to thank you everyone for attending the call today. We look forward to speaking with you soon. Have a great day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.