The Innerwear segment results of the company were consistent with expectations. US Innerwear sales decreased 2 per cent in the second quarter, while operating profit decreased 6 per cent, said Hanesbrands in a press release.
Sales of Innerwear basics decreased 2 per cent in Q2 as expected. Sales of Innerwear intimates declined less than 3 per cent in the quarter. Intimates performance reflected continued double-digit growth for shapewear and progress in the company’s bra revitalisation initiative.
Activewear segment sales and profits increased double-digits on strong Champion growth. US Activewear segment second-quarter net sales increased more than 10 per cent.
Sales for Champion outperformed expectations. Outside the mass channel, Champion sales increased more than 50 per cent as a result of strong sell-through, space expansion, new distribution and growth in the consumer-directed, bookstore and distributor channels. The brand’s mass business, C9 by Champion, increased 8 per cent.
For the non-Champion portion of the segment, second-quarter sales declined, as expected, as the company exited commodity-oriented business in the mass channel and continues to focus on remixing sales to improve profitability.
International segment growth continued to be broad-based. International segment net sales increased 4 per cent as reported and more than 10 per cent in constant currency. The innerwear and activewear categories delivered growth internationally. Geographically, constant-currency sales increased by double-digits in Europe and Asia and high-single-digits in Australia.
“Our successful growth strategies drove strong second-quarter results and first-half momentum, including outstanding Champion brand growth, very effective product innovation, international growth, and continued consumer-direct sales growth,” said Hanes chief executive officer Gerald W Evans Jr. “This momentum combined with our second-half plans and visibility gives us confidence in our ability to achieve full-year guidance at the midpoint or higher. Champion bookings remain strong, additional product innovation is planned, the outlook for International contributions remains positive, and our operating margin is expanding. We are solidly on track to meet our cash flow and debt leverage goals.”
The company expects 2019 net sales of $6.885 billion to $6.985 billion, GAAP operating profit of $900 million to $930 million, adjusted operating profit of $955 million to $985 million.
For the third quarter, net sales are expected to be in the range of $1.84 billion to $1.875 billion, up slightly at the midpoint versus a year ago. (PC)
Fibre2Fashion News Desk – India
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