Hanesbrands Posts 12% Sales Increase
Acquisition Of Maidenform Brands, Inc. Helped Results
Keyed by a combination of acquisitions, activewear sales and operational efficiencies, North Carolina-based HanesBrands (asi/59528) has announced total revenues for the quarter ended June 28, 2014, increased 12% to $1.34 billion. Operating profit jumped 27% to $231 million, and adjusted diluted EPS rose 44%. Gross margin also nudged higher to 37.6%, up from 36.3%.
“Our record first-half results are a testament to the value we are creating through our Innovate-to-Elevate, self-owned supply chain, and acquisition strategies,” said Richard A. Noll, CEO of Hanes. “We remain confident in our business model and our performance momentum.”
Hanes’ acquisition of Maidenform Brands, Inc., last October contributed mightily to its second-quarter results, adding $141 million in sales. Excluding the Maidenform totals, net sales increased nearly 1% year-over-year. The company said it was on track, as well, with its integration of Maidenform Brands. Hanes also announced during the quarter that it intends to acquire DBApparel, a European marketer of intimate apparel, hosiery and underwear that used to be a sister division to Hanes under previous corporate ownership.
Each Hanesbrands’ business segment saw Q2 sales growth. Activewear posted net sales increases of 8% in the quarter and 9% for the first half of the year. The segment, which includes retail, branded printwear and the company’s Gear for Sports business, saw increased channel penetration and leveraging of its supply chain through higher internalized production. Operating profit for activewear grew 23% in the quarter and 33% for the first half of 2014. Innerwear net sales also rose 15% during Q2.
On the strength of its second-quarter results, the company has raised its adjusted EPS, adjusted operating profit and net cash outlook from operating activities. Hanes is now forecasting 2014 sales of $5.075 billion, with earnings of 5.20 to $5.40 a share.