Home / Knowledge / News / Apparel/Garments / Sales remain unchanged at Hanesbrands in Q3
Sales remain unchanged at Hanesbrands in Q3
31
Oct '08
Hanesbrands Inc., a leading marketer of innerwear, outerwear and hosiery apparel, today reported results for the 2008 third quarter.

Total net sales in the quarter were unchanged at $1.15 billion. Earnings per diluted share in the quarter were $0.17. Excluding actions and the previously announced impact of a retailer bankruptcy, non-GAAP earnings per diluted share increased by 17 percent to $0.56 as a result of reduced long-term debt, lower base interest rates, and lower income tax expense as a result of the company's global supply chain strategy.

"We continued our strategic execution in the third quarter and delivered comparable sales and solid earnings per share in a difficult environment," Hanesbrands Chief Executive Officer Richard A. Noll said. "We remain optimistic about our earnings potential for the fourth quarter due to favorability of expenses that may more than offset the challenges of higher commodity costs and an uncertain sales environment."

Noteworthy Financial Highlights:
Total net sales in the quarter held steady at $1.15 billion, increasing slightly. Sales increases in the innerwear and international segments were offset primarily by declines in the sheer hosiery segment and the other segment. The 2 percent sales increase in the innerwear segment was driven by strong Hanes male underwear sales.

In the outerwear segment, Champion activewear sales increased by double-digits. Total net sales for the nine-month period were down 3.1 percent to $3.21 billion. GAAP earnings per diluted share in the quarter decreased by $0.23 to $0.17. This includes a $0.35 reduction per diluted share for restructuring and related charges and $0.04 per diluted share for the bankruptcy of Mervyn's, a regional retailer, which announced its liquidation plans after the end of the third quarter.

Excluding actions and the previously announced Mervyn's bankruptcy impact, non-GAAP diluted EPS increased by $0.08 to $0.56. Excluding actions only, non-GAAP diluted EPS increased by $0.04 to $0.52. For the nine-month period, non-GAAP diluted EPS, excluding actions, increased by 23 percent to $1.59.

GAAP operating profit in the quarter was $58.2 million, down $47.5 million. Non-GAAP operating profit, which excludes actions, declined by $13.1 million in the quarter. The company was able to substantially offset significant increases of $12 million of higher cotton costs and $7 million of oil-related costs through continued benefits of cost-saving initiatives. SG&A cost increases included $5.5 million of bad debt expense due to the Mervyn's bankruptcy.

Non-GAAP operating profit margin excluding actions and the Mervyn's impact was 9.3 percent in the quarter versus 10.0 percent a year ago.

(Diluted EPS excluding actions, operating profit excluding actions, operating profit margin excluding actions and SG&A excluding actions are non-GAAP measures used to better assess underlying business performance because they exclude the effect of unusual actions that are not directly related to operations.


Must ReadView All

Trump-Xi summit not to occur in March: Steven Mnuchin

Textiles | On 22nd Mar 2019

Trump-Xi summit not to occur in March: Steven Mnuchin

A summit to ink a trade deal between Chinese President Xi Jinping and ...

Pic: Pxhere

Textiles | On 22nd Mar 2019

Australian wool market remains mundane this week

Price variations on all types apart from carding wools were minimal...

European Union offers UK more time to leave bloc

Textiles | On 22nd Mar 2019

European Union offers UK more time to leave bloc

Prime Minister Theresa May has been offered two weeks’ Brexit...

Interviews View All

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Cong Zheng,

Cong Zheng

The China Textile Machinery Association (CTMA) is a social-economic...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

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

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

Leave your Comments


March 2019

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

news category


Related Categories:

Advanced Search