Home / Knowledge / News / Apparel/Garments / Hanesbrands reaffirms 2010 sales growth guidance
Hanesbrands reaffirms 2010 sales growth guidance
Dec '09
Hanesbrands Inc. which is reaffirming its 2010 outlook for approximately $200 million in additional sales from net shelf-space gains, a 5 percent increase, completed a growth-focused debt refinancing that enables the company to simultaneously reduce leverage and consider acquisition opportunities.

The refinancing, which was positively received by the capital markets, gives the company much more flexibility in its use of excess cash flow, allows continued debt reduction, and provides a stable long-term capital structure with extended debt maturities at rates slightly lower than previous effective rates.

The combined benefits of the expected sales increase from net shelf-space gains, reduced interest expense through deleveraging, continued operating margin improvement from supply chain globalization, and growth potential through acquisitions are contributing to positive momentum for company earnings growth.

“We are focused on creating value in 2010 and beyond by taking market share and leveraging the growth platform we have built,” said Hanesbrands Chairman and Chief Executive Officer Richard A. Noll. “We have worked diligently over the past three years to create a new Hanesbrands, an apparel essentials powerhouse with strong cash flow, flexible capital structure, re-energized brands and a low-cost global supply chain. The combination of our brand power and supply-chain competitiveness gives us the potential to expand market share around the world through organic growth, retailer partnerships, enhanced shelf space, improved channel penetration, distribution expansion, and acquisitions.”

Hanesbrands Growth Model

The company's earnings growth potential is tied to its sales outlook, capital structure, cost-reduction efforts and ability to take advantage of other growth opportunities, including low-risk acquisitions.

Hanesbrands has secured significant additional net shelf space and new distribution for its products across all core product segments, all brands and all channels of trade in 2010. The net space gains are expected to add approximately $200 million, or approximately 5 percent, in sales next year, independent of consumer spending levels.

Continued benefits from the company's globalized supply chain may result in the company achieving its goal to improve operating profit margin by 50 to 100 basis points in 2010, despite expected minor increases in commodity costs.

In its refinancing completed today, Hanesbrands used the proceeds of the $500 million notes offering and borrowings from its new $1.15 billion credit facilities to refinance its borrowings under its former credit facility, to repay all of its borrowings under its second-lien credit facility and to pay fees and expenses related to the notes offering and refinancing.

Credit rating agency Standard & Poor's confirmed Hanesbrands' corporate credit rating at BB-, removed the company from CreditWatch, raised the company's rating on its unsecured debt to B+ from B, and gave the new notes the same B+ rating. Moody's confirmed Hanesbrands' corporate rating at Ba3, upgraded the company's outlook to stable, and assigned a B1 rating to its new senior unsecured notes.

Must ReadView All

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Information Technology | On 21st Feb 2017

ThreadSol launches IntelloBuy & IntelloCut in Vietnam

ThreadSol, the pioneer of enterprise material management for sewn...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Lynda Kelly
Suominen Corporation

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


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