Hanes inks double-digit growth in three straight quarters

01 Nov '14

4 min read

Retail sales in the quarter were affected by a continued uneven and challenging retail environment. Sales growth of at least mid-single digits in socks, boys’ underwear, and panties were offset by softness in other innerwear categories.

“Innovation platforms, including ComfortBlend and X-Temp underwear and Flexible Fit bras, continued to outperform their respective categories,” HanesBrands said.

Innerwear’s operating profit margin increased 200 basis points to 19.8 percent as a result of strong supply chain performance and Innovate-to-Elevate.

Third quarter of 2014 activewear sales increased 5 percent year-on-year, while operating profit declined 1 percent versus a strong year-ago third quarter.

The segment’s operating profit margin stood at 16.1 percent in the third quarter of 2014, and the year-to-date operating margin of 14.1 percent is 95 basis points better than a year ago, Hanes said.

Retail Activewear sales increased by 1 percent from a year ago quarter, while Gear for Sports sales increased by double digits.

The acquisitions of Maidenform and DBApparel contributed to international sales growth of 63 percent and operating profit growth of 74 percent, both increases from prior year quarter, while foreign exchange rates on currency continued to have a negative impact on both measures.

Net sales for the Direct to Consumer segment in the reporting quarter went up by 13 percent and operating profit increased 6 percent, with the acquisition of Maidenform contributing to both comparisons versus the year-ago quarter.

Its updated 2014 full-year financial guidance includes an increase in expected adjusted EPS to a range of $5.55 to $5.65, up from a previous guidance of $5.40 to $5.60 and continues to expect net sales of approximately $5.350 billion to $5.375 billion. (AR)

Fibre2fashion News Desk - India

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