HanesBrands: a record first quarter
Hanesbrands continues to increase its scope and thus its results. After a 15% increase in revenue in 2014 led by its acquisitions of Dim Brand Apparel and Maidenform, the American group continued its progress in its first quarter. Including the finalisation of its acquisition in February of Knights Apparel, a specialist for apparel under license with American universities.
For the first quarter ended on 4 April, Hanesbrands has recorded a 14% increase in its revenue, at 1.2 billion dollars. The adjusted operating result went up 16% to 133 million dollars. As for net income, it rose even more, by 26.7%, to 52.6 million dollars.
The underwear segment (Hanes, Dim, Wonderbra, Maidenform...) saw its sales drop 4%, but its operating income nevertheless went up 13%, notably thanks to cost reductions at Maidenform, the group pointed out.
Activewear net sales increased 1 percent in the first quarter, while adjusted operating profit decreased 3 percent. Results were affected by the timing of Champion retail space gains for 2015, many of which will occur in the second quarter.
Overall, first-quarter results were consistent with the company’s expectations. Hanes has increased its full-year 2015 growth expectations and financial guidance to reflect the expected contributions of the Knights Apparel acquisition and reflect updated assumptions for currency exchange rates for the remainder of the year.
For 2015, 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. All this while new restructuring plans have been announced, notably the redundancy plan that concerns Dim Brand Apparel with 600 layoffs in Europe.
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