HanesBrands Reports 2013 Financials

2013 4th Q Saw 12% Jump In Revenues

HanesNorth Carolina-based supplier HanesBrands (asi/59528) has announced its 2013 sales rose to $4.63 billion, a year-over-year increase of 2%. In its fiscal fourth quarter, HanesBrands made even stronger gains, reporting a 12% jump in revenues, boosted by its October 2013 acquisition of Maidenform.

“We had an outstanding year in 2013 with four consecutive quarters of strong performance,” said Hanes CEO Richard A. Noll. “We achieved record results and reached significant milestones, including generating nearly $600 million of cash from operations. The combination of our brand power, low-cost supply chain and innovation platforms is generating value and growth opportunities.”

Within segments, HanesBrands’ innerwear net sales rose 20% in Q4 and 5% in 2013. Direct-to-consumer revenues improved 14%, while international net sales increased 10% in the fourth quarter. Only the company’s activewear segment produced mixed results, with fourth quarter sales up 1% and full-year sales down 1%.

While overall net sales were higher, HanesBrands said its fourth quarter earnings fell markedly, dropping 60% because of overhead costs. Still, for all of 2013, HanesBrands reported earnings of $330.5 million, or $3.31 per share, a significant gain compared with its prior year earnings of $164.7 million, or $1.67 per share.

HanesBrands has adjusted upward its full-year 2014 guidance, forecasting sales of approximately $5.1 billion and earnings of between $4.60 and $4.80 per share. “We are raising our 2014 earnings guidance because we are increasingly confident that the momentum of our innovate-to-elevate strategy will deliver even better results,” Noll said.