Net sales at Hanesbrands, a marketer of innerwear and apparel were up 8 per cent year over year and reached $5.73 billion for the fiscal ended January 2, 2016.
“Core sales in constant currency in the fiscal were essentially flat to the prior fiscal, while fourth-quarter net sales declined 7 per cent and core sales in constant currency decreased 5 per cent,” a Hanesbrands press release stated.
Adjusted operating profit excluding actions for the reporting fiscal increased 13 per cent to $861 million and also rose 6 per cent in the fourth quarter of fiscal 2016.
Adjusted operating profit margins increased 180 basis points in the fourth quarter of the fiscal and 70 basis points to 15.0 per cent of sales for the full fiscal.
Adjusted EPS excluding actions for the year surged 17 per cent over the prior fiscal to $1.66 and soared 22 per cent in the fourth quarter to $0.44.
In fiscal 2016, on a GAAP basis, operating profit drove up 6 percent year on year to $595 million and grew 20 per cent for the fourth quarter.
Again on GAAP basis, EPS rose 7 per cent in fiscal 2016 to $1.06 and increased 36 per cent for the fourth quarter to $0.30.
“We delivered our third consecutive record year in 2015, although we are disappointed with our fourth-quarter performance,” Hanes chairman Richard Noll said.
“For 2016, I feel confident in our growth expectations and outlook for a fourth consecutive year with a double-digit increase in adjusted EPS,” he added.
According to the company, acquisition benefits, margin expansion and cost control contributed to record net sales, adjusted operating profit and adjusted EPS for the fiscal.
It said that the company continued to reap synergy benefits in the fiscal from its 2013 Maidenform acquisition.
The retailer further added that the integrations of the company's 2014 acquisition of DBApparel and 2015 acquisition of licensed apparel leader Knights Apparel are underway.
For the next fiscal, Hanes expects another fiscal of double-digit earnings growth and expects adjusted EPS to be between $1.85 and $1.91, or expected growth of 11 per cent to 15 per cent.
Net sales are expected to be $5.8 billion to $5.9 billion, up 1 per cent to 3 per cent and expectations for adjusted operating profit of $920 million to $950 million would be an increase of 7 per cent to 10 per cent.
“This guidance reflects additional incremental sales from completed acquisitions and the non-recurrence of certain negative impacts in 2015,” the company observed.
It also includes contributions from Innovate-to-Elevate platforms and an increased focus on driving core volume that more than offset the negative impacts from currency valuations.
Its sales initiatives include continued growth and space expansion for Innovate-to-Elevate platforms; such as Hanes and Champion X-Temp; application of Innovate-to-Elevate and marketing programs for core products. (AR)
Fibre2Fashion News Desk – India