HanesBrands Reports Slowing Domestic, Strong Global Figures in Q3

11/2/19

By Aysha Diallo, NC Biz News

HanesBrands released third quarter results Thursday that showed sluggish domestic numbers offset by growth in global sales.

The clothing company from Winston-Salem recorded $1.87 billion in revenues for the third quarter, just beating the average analyst estimate of $1.86 billion according to Bloomberg data.

Net sales for domestic Innerwear fell by 3.5 percent in the third quarter and Activewear fell by 1.2 percent, the company said in a press release.

U.S. Innerwear sales were “modestly below” company expectations HanesBrands said due to a “softer-than-expected back-to-school retail environment.”

The company said it plans to continue its focus on remixing to branded products to improve segment margins.

In contrast, global sales for the company’s Innerwear and Activewear increased in the third quarter. Champion, a clothing brand owned by HanesBrands, continues to grow globally, the company said.

“Our International businesses are outperforming, global Champion growth continues, we are thriving in the consumer-direct channels, and we are charting a path back to growth for our U.S. Innerwear businesses through innovation and brand investment,” said Gerald Evans, HanesBrands CEO.

The company met earnings per share estimates at 54 cents, a figure that is down one cent from the previous year.

The company expects 2019 net sales to be negatively affected by adverse foreign currency exchange rates. Net sales are now expected to be in the range of $6.94 billion to $6.99 billion for the year, up from prior views.

Shares of HanesBrands were trading at $15.48 on Friday, up 27 cents.

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