Champion leads progress at HanesBrands in Q3
Sportswear brand Champion posted a year-over-year increase of 33% in its sales in the third quarter ended October 2, 2021, driving growth at HanesBrands, its Winston-Salem, North Carolina-based parent company, which reported total revenues of $1.79 billion.
Hanes’ Q3 net sales reflected a 6% increase when compared to the $1.69 billion reported by the company in the same period in the previous year, which included a contribution of $179 million from the sale of personal protective equipment related (PPE) related to the Covid-19 pandemic.
Compared to the third quarter of 2019, when the company’s operations were still unaffected by the impact of the health crisis, Hanes’ net sales from continuing operations increased 11%, including 20% growth at Champion.
Sales in the group’s activewear segment increased 42% year over year and 4% compared to the third quarter of 2019. Innerwear sales, on the other hand, fell 11% compared to Q3 2020, when the segment benefitted from the contribution of PPE sales, and increased 25% compared to Q3 2019.
Finally, the company’s international segment saw a 6% rise in revenue year over year and a 4% increase compared to the same period two years ago. Broken down by region, growth in the Americas, Europe and China helped offset coronavirus-related headwinds in Japan and Australia.
Hanes’ quarterly net income from continuing operations was $177 million, or $0.50 per diluted share, compared to $118 million, or $0.34 per diluted share, in the prior-year period. In 2019 the figure was $189 million, or $0.52 per diluted share.
“I want to thank our associates for delivering strong results in the quarter, particularly our manufacturing team, which has put us in position to meet consumer demand,” said Hanes CEO Steve Bratspies in a release.
“We continue to make progress on our Full Potential plan as we invest in our iconic brands, build talent, enhance e-commerce capabilities and modernize our technology. We’re excited by the early results from Full Potential and are confident we can deliver the long-term plan we announced in May,” added the executive.
Hanes’ Full Potential plan involves increased investments in global media and marketing, and efforts to improve the company’s core e-commerce capabilities. The strategy also prioritizes the streamlining of the HanesBrands portfolio, a process that has seen the group enter into an agreement to sell its European innerwear business to an affiliate of Regent LP. The transaction is expected to complete in the first quarter of 2022.
Looking forward, Hanes expects to report net sales from continuing operations of approximately $1.71 billion to $1.78 billion in the fourth quarter, reflecting growth of around 3%. EPS is predicted to be in the range of $0.24 to $0.29.
For the full fiscal year 2021, the company expects to report annual net sales of between $6.76 billion and $6.83 billion, up 11% from 2020, while EPS is predicted to be in the range of $1.53 to $1.58.
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