Home / Knowledge / News / Apparel/Garments / Q1 GAAP operating profit surges 25% at HanesBrands
Q1 GAAP operating profit surges 25% at HanesBrands
Apr '15
On a GAAP basis, operating profit surged 25 per cent to $90 million while earnings per share (EPS) rose higher by 30 per cent to $0.13, both up from the year ago quarter at HanesBrands in the first fiscal quarter ended April 4, 2015.

“Net sales drove up 14 per cent year over year to $1.2 billion in the first quarter of fiscal 2015, reflecting the benefits of our multiyear acquisition strategy,” the innerwear marketer said in a press release.

“We are off to a great start in 2015, once again delivering a double-digit increase in EPS, while staying on track on our full-year growth plans,” Hanes CEO Richard Noll said.

“Our acquisition strategy continues to create value with DBApparel, Maidenform and Gear for Sports all contributing substantially to our double-digit growth,” he added.

Since the end of the first quarter, Hanes closed on the acquisition of Knights Apparel, a leading seller of licensed collegiate logo apparel in the mass retail channel.

First quarter of fiscal 2016 sales were driven by DBApparel which contributed net sales of $184 million as against $164 million in the prior year first quarter.

The company’s adjusted operating profit margin expanded 20 basis points in the first quarter; while core adjusted operating margin increased 90 basis points but was partially diluted by acquisition of DBApparel.

It too added that the company continues to derive significant benefits from the previous acquisitions of Gear for Sports and Maidenform.

Innerwear net sales declined 4 percent from a year quarter in the first quarter of fiscal 2016, due to a decline in retailer’s inventory reduction of approximately two weeks of supply.

Activewear net sales ascended 1 per cent in the first quarter, which were affected by the timing of Champion retail space gains for 2015, many of which will occur in the second quarter.

Despite currency headwinds and Target’s exit from Canada, international sales and operating profit increased significantly, with strong contributions from DBApparel, Japan and Latin America.

Hanes has increased its fiscal 2016 guidance to reflect the expected contributions from Knights Apparel and has updated its expectations for currency exchange rates for the rest of the year.

Hanes now expects net sales of approximately $5.9 billion to $5.95 billion, adjusted operating profit of $853 million to $873 million and adjusted EPS of $1.61 to $1.66 in fiscal 2016.

According to Hanes, the new guidance represents a rise of 10.9-11.8 per cent for net sales, 12-14 per cent for adjusted operating profit and 13-17 per cent for adjusted EPS over fiscal 2015.

The company continues to expect net cash from operating activities to total $550 million and $600 million in fiscal 2016.

Interest expense and other expense are expected to be approximately $95 million to $100 million combined, up $5 million from previous guidance as a result of additional debt to finance the Knights Apparel acquisition. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Pic: Shutterstock

Textiles | On 8th Aug 2020

Pandemic causes trade decline, dips commodity prices: IMF

Current account surpluses and deficits narrowed modestly in 2019, and ...

Pic: Shutterstock

Textiles | On 8th Aug 2020

India to launch Focused Product Investment Scheme for MMF

India will launch a Focused Product Investment Scheme to attract...

Pic: Shutterstock

Textiles | On 8th Aug 2020

Pak ministry working to get textile policy cleared by ECC

Pakistan's commerce ministry is busy trying to get the Textile Policy ...

Interviews View All

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Xavier Martinez,

Xavier Martinez

CADT Software & Drafting was founded in Spain in 1987 by Josep...

Ken Butts,

Ken Butts

The mission of Swiss company Datacolor is to empower its customers to make ...

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

Asif Rahman, MIP

Asif Rahman

MIP is a manufacturer and distributor of high-performance textiles and...

Kevin Nelson, TissueGen

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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


Leave your Comments

July 2020

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

Advanced Search