Home / Knowledge / News / Apparel/Garments / Q2FY16 GAAP operating profit tanks 33% at HanesBrands
Q2FY16 GAAP operating profit tanks 33% at HanesBrands
01
Aug '15
GAAP operating profit tanked 33 per cent to $139 million and EPS drove down 39 per cent to $0.23, both down from a year ago periods, at apparel marketer HanesBrands in the three months to July 4, 2015

While, adjusted operating profit excluding actions increased 15 per cent to $265 million and adjusted EPS excluding actions surged 16 per cent to $0.50 in the same comparative periods.

“However, acquisitions pushed up net sales 13 per cent year over year to $1.52 billion in the second quarter of fiscal 2016,” Hanes said in a press release.

“Sales growth was driven by Activewear and acquisitions of DBApparel and Knights Apparel and results were driven by acquisition benefits, global supply chain performance and margin expansion,” it explained.

Net sales in the quarter excluding foreign currency fluctuations and the acquisitions of DBApparel and Knights Apparel rose by just 1 per cent.

Activewear net sales soared 19 per cent in the reporting quarter, driven by high-single-digit growth of Champion as well as $37 million in net sales from Knights Apparel, which was acquired April 6, 2015.

In the international segment, DBApparel, that was acquired August 29, 2014, contributed net sales of €149 million as against €134 million in the prior fiscal second quarter.

Its adjusted operating profit margin increased 20 basis points in the quarter under review to 17.4 per cent, while that of Innerwear and Activewear grew by 190 basis points and 130 basis points, respectively.

“Contributors included strong supply chain performance, Innovate-to-Elevate benefits, and performance associated with the previous acquisitions of Gear for Sports and Maidenform,” it informed.

“We continue to deliver double-digit growth in adjusted operating profit and EPS as expected, and we are tracking to our full-year profit expectations,” Hanes chairman Richard Noll said.

“The integrations of our DBApparel and Knights Apparel acquisitions are proceeding on plan, and we continue to reap benefits from the past acquisitions of Gear for Sports and Maidenform,” he added.

According to Hanes, the DBApparel integration planning continues to progress on schedule with implementation to begin in the fourth quarter, subject to pending consultations with works councils and unions.

The integration plan for Knights Apparel has been designed and communicated to employees, with implementation beginning late in the fourth quarter of 2015.

For full fiscal 2016, Hanes now expects net sales of slightly less than $5.9 billion, expects adjusted operating profit of $855 million to $875 million, and continues to expect adjusted EPS of $1.61 to $1.66.

The company's fiscal 2016 guidance represents growth over fiscal 2015 results of nearly 11 per cent for net sales, 12-15 per cent for adjusted operating profit, and 13-17 per cent for adjusted EPS. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search