HanesBrands records better-than-expected sales on Champion, innerwear
American apparel company HanesBrands announced on Thursday better-than-expected results for the full-year 2021, on the back of increased sales its in innerwear segment and a stellar performance at its Champion brand.
The Winston-Salem, North Carolina-based company said net sales from continuing operations for the fourth quarter ended January 1 totaled $1.75 billion, an increase of $63 million, or 4%, including 10% growth in Champion brand sales globally. The year-over-year growth in net sales was driven by strong consumer demand and point-of-sale trends in the U.S., Europe, Americas and certain Asia markets, including China, offsetting lingering Covid-related headwinds in Australia and Japan, the company said.
By category, innerwear sales increased 3% over last year, excluding PPE, driven by point-of-sale growth across channels, while activewear sales grew $46 million, or 11% over prior year driven by strong point-of-sale trends across its activewear brands. International sales rose 4% to $19 million.
Fourth-quarter net income totaled $60 million, or $0.17 per diluted share, a profitability recovery compares to the prior year's loss of $323 million, or ($0.95) per diluted share.
For the full-year, net sales gained 11% to $6.8 billion, compared to the year prior. Net income also made a solid recovery for the year, totalling $77 million, compared to a loss of $75.5 million the year prior.
"We are rapidly creating a new HanesBrands, focused on growth and serving our consumers and customers like never before,” said Steve Bratspies, chief executive officer. “We significantly outperformed our expectations in 2021, driving increased financial projections in our three-year 'Full Potential' growth plan.
Looking ahead, HanesBrands expects full-year sales from continuing operations of $7 billion to $7.15 billion in 2022.
"As we enter 2022, our performance, operational execution and financial foundation are far stronger than they were before the pandemic," added Bratspies.
"We are implementing a three-year $600 million stock repurchase program, based on our confidence in future growth. Most importantly, I want to thank our outstanding global associates as they continue to meet every challenge to serve our consumers.”
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