Hanes Exits Private-Label Business
Hanes Will Rename Its Imagewear Division Branded Printwear
HanesBrands (asi/59528) has announced it is exiting the private-label apparel business in the U.S. and it plans to divest the Outer Banks brand. As part of the division's restructuring announced Tuesday, Hanes will rename its Imagewear division Branded Printwear, which will be focused solely on Hanes and Champion branded products in the U.S. "We are committed to the promotional products market," said Matt Waterman, director of marketing for HanesBrands. "We remain committed to our two strongest brands, Hanes and Champion."
In addition to its private-label exit, the company signed a definitive agreement on May 25 to sell its European imagewear division to an affiliate of Smartwares B.V. for approximately $20 million, and it expects to close on the sale this week. "We are a branded company. That includes being committed to branded printwear in the United States where we can partner with our wholesale customers to take advantage of our strong consumer brands and product differentiation," Hanes Chairman and CEO Richard A. Noll said in a statement. "With our exit from Europe, we can devote all of our energies to growing our branded portfolio in core geographies in the Americas and Asia."
Waterman confirms that Hanes is "actively looking for a buyer for the OuterBanks brand," adding that Hanes is striving to minimize service disruptions during the transition. In its public filing, Hanes (NYSE: HBI) said that its Imagewear division accounted for about 8% of its overall sales before this week's actions. Moving forward, the company expects its new Branded Printwear division to account for about $150 million in revenues in 2013.