HanesBrands Announces First Quarter Financials
Company Posted $26.8M Loss In 1st Quarter Last Year
Counselor Top 40 supplier HanesBrands (asi/59528) posted a $51.4 million profit in the first quarter of 2013, the company announced. A 700% year-over-year increase in operating margins (due to higher product prices combined with lower cotton costs) offset a 2% decrease in sales to create strong profit for the quarter. Last year HanesBrands posted a $26.8 million loss in the first quarter.
"We are pleased with our ongoing strategic execution, which resulted in improved profitability in the first quarter and bolsters our outlook for the rest of the year," said Richard A. Noll, Hanes chairman and chief executive officer. "Our operating profit margin was strong, our brands are commanding more retail shelf space, and our product innovation is working. We have more margin improvement potential ahead of us."
Hanes' Branded Printwear division, which caters to the advertising specialty and screen printing industries, experienced a sales decline of $15 million in the quarter. Hanes said the decline was a "planned reduction of commodity-oriented branded printwear sales." The company expects a decline of $40 million to $50 million in branded printwear sales in 2013.
Last year Hanes sold its European imagewear business and discontinued both its private-label program and Outer Banks product line. The company says those moves will have no effect on results in 2013.