Home / Knowledge / News / Apparel/Garments / Sales up marginally at apparel brand HanesBrands in Q2
Sales up marginally at apparel brand HanesBrands in Q2
01
Aug '12
HanesBrands a leading marketer of everyday branded basic apparel reported financial results for the second quarter ended June 30, 2012. In the quarter, the company announced exiting certain international and domestic imagewear businesses that are all now classified as discontinued operations. Unless otherwise noted, all financial results in this press release are GAAP measures for continuing operations.

In the quarter, net sales were $1.18 billion, an increase of 1 percent over last year's quarter, and earnings per diluted share were $0.67, a decrease of 14 percent. The decrease in EPS was primarily due to substantially higher cotton costs, although the Innerwear segment had 18 percent growth in operating profit on strong sales of men's underwear, children's underwear, and women's panties and bras.

With the majority of cotton inflation behind the company, Hanes expects solid results in the second half of 2012. The company's full-year guidance is for diluted EPS of $2.50 to $2.60; net sales of $4.52 billion to $4.57 billion, an increase of approximately 2 percent to 3 percent over last year; and free cash flow of $400 million to $500 million.

"Our business had a solid quarter, and we are performing slightly ahead of our plans for the year, especially in the Innerwear segment," Hanes Chairman and Chief Executive Officer Richard A. Noll said. "While we still have a long way to go, we are well positioned for the second half of the year."

Second-Quarter Business Highlights

  • Innerwear segment net sales increased 2 percent in the quarter over last year, following a 1 percent sales gain in the first quarter. Excluding sales declines to a major mid-tier retail customer that is undergoing a major strategic shift, year-over-year Innerwear sales would have increased 4.4 percent in the second quarter and 2.7 percent in the first quarter. Operating profit in the quarter increased 18 percent over last year, and the segment operating profit margin increased 2.4 percentage points.
  • Outerwear segment net sales increased 1 percent while the segment had an operating loss. Sales increased for Champion activewear and Hanes casualwear, but as expected, sales declined in branded printwear. Higher cotton costs and lower prices in branded printwear reduced margins and profitability.
  • International segment net sales declined 2 percent, and operating profit was comparable to a year ago. On a constant currency basis, International net sales increased 5 percent and operating profit increased 10 percent. With the sale of the company's European imagewear operations, the company has no exposure to the European market.
  • The company's overall operating profit margin was 10.2 percent in the quarter, and its gross margin was 31.1 percent despite cotton costs of more than double those of the prior-year quarter.

Click here to read more details:

HanesBrands

Must ReadView All

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Textiles | On 23rd May 2017

Grasim's VSF business net revenue up 12% in Q4 FY17

The viscose staple fibre (VSF) business of Grasim Industries has...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search