• International segment sales increased in all geographies except Japan and Western Europe.
Other Comments Inventories at the end of the quarter were $1.18 billion, a 9 percent decrease from last year's quarter end. Hanesbrands increased its inventories from the beginning of the fiscal year in order to build for the seasonally stronger second quarter and back-to-school period, in order to support new programs, and due to slightly higher work-in-progress as a result of disrupted Haiti production and the Nanjing, China, textile plant ramp-up.
Earnings before interest, taxes, depreciation and amortization nearly tripled in the first quarter to $107 million from $36 million a year ago.
Hanesbrands has earned the U.S. Environmental Protection Agency's Energy Star 2010 Partner of the Year award for its accomplishments in strategic energy management. The company also launched a new corporate social responsibility section on its corporate website that outlines the company's worldwide goals to reduce energy use and carbon emissions, including goals to use renewable energy for 30 percent of its energy needs and to reduce carbon dioxide emissions by 15 percent per product produced.
2010 Guidance Hanesbrands has revised its 2010 net sales guidance to 6 percent to 8 percent growth. The company continues to expect slightly more than 5 percentage points of growth from retail shelf-space gains. Based on strong first-quarter performance, the company expects sales growth of at least 1 to 3 percentage points from an overall increase in consumer spending and retailer inventory restocking.
As a result of increased sales expectations, the company will invest an incremental $5 million to $10 million in advertising and trade spending over the remainder of the year and has raised its 2010 EPS guidance to a range of $2.15 to $2.27. As communicated with previous EPS guidance, if earnings approach the high end of the range, the company expects to consider additional investment in advertising and trade promotion to support 2011 growth.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
