HanesBrands, a leading marketer of everyday basic apparel under world-class brands, announced that acquisition benefits and strong operating performance drove record first-quarter financial results.
For the first-quarter 2014, net sales increased 12 percent to $1.06 billion, adjusted operating profit excluding actions increased 34 percent to $114 million, and adjusted EPS excluding actions increased 49 percent to $0.76. Primary contributors to the record quarterly results in a difficult economic environment were increased margins driven by the company’s Innovate-to-Elevate strategy, strong Activewear segment results led by performance of the Champion brand, increased supply chain operating efficiencies, tight control of selling, general and administrative costs, and successful integration of Maidenform Brands, Inc., which was acquired in October 2013.
As a result of strong first-quarter 2014 results, the company has raised its 2014 full-year financial guidance. Increased expectations include adjusted operating profit of $665 million to $685 million, up $25 million; adjusted EPS of $4.80 to $5.00, up $0.20; and net cash from operating activities of $475 million to $575 million, up $25 million. The company continues to expect net sales for the year of slightly less than $5.1 billion.
“We had very strong first-quarter profitability and have raised our full-year profit guidance as a result of our continued confidence in our Innovate-to-Elevate strategy and our progress with the integration of Maidenform,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “Our Activewear segment achieved outstanding results across channels, particularly with our Champion brand at retail.”
Net sales in the first quarter of $1.06 billion increased by $114 million compared with the year-ago quarter as a result of the acquisition of Maidenform and Activewear segment growth. Excluding the Maidenform acquisition, net sales on a constant currency basis were flat despite the difficult retail environment exacerbated by extreme weather.
Adjusted EPS for the quarter increased to $0.76 from $0.51 in 2013. On a GAAP basis, diluted EPS was $0.41 in the quarter versus $0.51 a year ago.
Adjusted operating profit for the quarter increased to $114 million, compared with $85 million a year ago. On a GAAP basis, operating profit for the quarter was $72 million versus $85 million a year ago.