REFILE-UPDATE 2-Hanesbrands eyes price hikes to counter cotton

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* Q4 EPS in line, sales up 16 pct

* Sees FY 2011 EPS about $2.60-$2.80 vs est $2.65 (Adds comparisons, details)

Jan 27 (Reuters) - Hanesbrands Inc (HBI.N) said it planned to increase prices sharply this year to offset higher cotton costs, which squeezed margins in the fourth quarter, and forecast full-year earnings mostly above market estimates.

The range of price changes will vary from flat to low-single digits on certain categories to up to 30 percent or more for cotton-intensive products, the company said in a statement.

The price increases, along with the strong performance of Hanesbrands' outerwear segment, could help the company beat market consensus by as much as 15 cents a share in 2011.

The cotton market has jumped almost 20 percent since the middle of January, fueled by robust prices in top consumer China. [ID:nN26530300]

Earlier in the day, Swedish fashion chain Hennes & Mauritz AB (HMb.ST) posted a surprise fall in quarterly profit, hit by higher costs of raw materials like cotton. [ID:nLDE70O1WE]

Best known for its underwear brands, Hanesbrands has been expanding its casual wear offering, and agreed to buy GearCo, a seller of logoed T-shirts and other sportswear to college students, in August.

For the fourth quarter, its outerwear segment sales rose 31 percent, while net sales rose 16 percent to $1.15 billion.

After adjusting for debt-refinancing expenses, earnings were 43 cents a share -- in line with what analysts were expecting.

Hanesbrands shares closed at $22.82 on Wednesday on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Maju Samuel)