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Nov 1, 2019
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HanesBrands carried through Q3 by Champion

Published
Nov 1, 2019

Winston-Salem, North Carolina-based apparel group HanesBrands announced a slight increase in third quarter revenues on Thursday, as strong growth at its Champion brand struggled to compensate for slipping innerwear sales.


The Champion brand continued to drive growth at HanesBrands in Q3 - Instagram: @champion

 
HanesBrands’ total net sales for the third quarter ended September 28, 2019, were $1.87 billion, up 1% (2% in constant currencies) from the $1.85 billion reported by the company in the prior-year period.
 
Continuing a recent trend at Hanes, Champion accounted for much of the company’s revenue growth, with global sales of the brand increasing 25% (26% in constant currencies), excluding the U.S. mass channel. This progress reflected a 29% increase on the domestic market and a 24% rise internationally.

By segment, HanesBrands’ innerwear sales fell 3.5% to $578.45 million, while activewear revenues slipped 1.2% to $548.12 million. In the company’s international segment, on the other hand, sales increased 7.1% (11% in constant currencies) to $663.53 million, exceeding the group’s expectations for the quarter.
 
Hanes’ quarterly net income totaled $187.8 million, or $0.51 per diluted share, up 9.5% from $171.42 million, or $0.47 per diluted share in Q3 2018.
 
Year to date, the company’s net sales totaled $5.22 billion, a 3.6% increase from $5.04 billion in the first nine months of fiscal 2018, while net income for the period rose 7.6%, from $391.46 million ($1.07 per diluted share) to $421.23 million ($1.15 per diluted share).
 
“We are proud to have met or exceeded our financial guidance for each of the first three quarters of the year,” said Hanes CEO Gerald W. Evans Jr. in a release. “Our International businesses are outperforming, global Champion growth continues, we are thriving in the consumer-direct channels, and we are charting a path back to growth for our U.S. Innerwear businesses through innovation and brand investment.”
 
HanesBrands also upped the mid-point of its full-year guidance for fiscal 2019. The company now expects to report annual sales of between $6.935 billion and $6.985 billion, as well as EPS in the range of $1.61 to $1.67.

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