Apparel maker HanesBrands (asi/59528) has reported its total first-quarter sales increased by 12% to a record $1.06 billion. Operating profit soared 34% and adjusted EPS for the quarter rose to $0.76 from $0.51 in 2013. Net income, though, decreased 19% to $41.5 million, largely because of higher expenses, HanesBrands said. In its earnings statement, the company attributed its overall gains to the successful integration of Maidenform Brands and growth in its activewear segment.
“We had very strong first-quarter profitability and have raised our full-year profit guidance,” said Richard A. Noll, CEO of Hanes. “Our activewear segment achieved outstanding results across channels.”
Besides positive results from Maidenform and activewear brand Champion, HanesBrands said increased margins, enhanced supply chain operating efficiencies and tight cost controls strengthened its position. Q1 Innerwear sales rose 14.9% to $571.1 million, while activewear revenues jumped 10.2% to $294.5 million. Direct-to-consumer sales increased to $83.7 million, a 4.5% improvement. International sales rose 9.7% to about $110 million, the company said.
Based on Q1 results, HanesBrands is now forecasting 2014 sales of nearly $5.1 billion, a 10% rise over 2013. The company is also expecting an operating profit of $685 million, up from a previous forecast of $665 million. For 2013, HanesBrands reported $4.63 billion in sales, a 2% increase over 2012.