Hanesbrands Reports Rise In Sales
Year-Over-Year Rise Of 14%
North Carolina-based Hanesbrands (asi/59528) has announced its total company revenues for the quarter ended April 4 increased to $1.21 billion, a year-over-year rise of 14%. The firm’s Q1 operating profit jumped to $133 million and its adjusted earnings per share (EPS) reached $0.22, a 16% gain.
“We are off to a great start in 2015, once again delivering a double-digit increase in EPS, while tracking to our full-year growth plans,” said Richard A. Noll, chairman and CEO of Hanes. “Our acquisition strategy continues to create value with DBApparel, Maidenform and Gear for Sports all contributing substantially to our double-digit growth.”
Within its segments, Hanes reported mixed results in North America, but significant growth abroad. Sales in the company’s innerwear segment decreased 4.4% to $546.2 million due “to significant reduction in short-term retail inventory of basics.” Direct-to-consumer sales fell 2.6% to $81.5 million. Activewear sales, though, were up 1.2%, spurred by Gear For Sports’ growth. Finally, Hanes’ international sales increased dramatically by 157% to $283.2 million, driven by major gains in Japan and Latin America. Hanesbrands’ purchase of DBApparel also contributed $184 million to its international revenues.
In its earnings release, Hanes also announced it completed the acquisition of Knights Apparel, a marketer of licensed collegiate logos and wearables. The $200 million deal was finalized on April 6. Through the purchase, Hanes expects to bring in more than $450 million in annual sales from licensed and graphic apparel.
Strengthened by the Knights Apparel acquisition, Hanes is raising its full-year outlook. For 2015, the company now expects net sales of approximately $5.9 billion to $5.95 billion and earnings of between $1.61 and $1.66.