Hanes Announces Sales Decline In Q2
“While our second-quarter results declined over last year, our Q2 plan called for a decline due to the tough comparisons in basics and Champion as well as quarterly timing shifts in shipments,” said CFO Richard D. Moss in an earnings call. “Year-to-date, our results are right in line with our expectations for sales, operating profit, earnings per share and cash flow. We’re confident in our ability to deliver on this second half as our sales initiatives have traction and are ramping, our acquisitions are generating synergies and our inventory reduction actions are working.”
The company reported a 7% drop in its activewear segment, which contains its promotional product apparel business. Decline in that segment was attributed to the Champion business in the U.S. staying flat compared to last year. Moss said that growth in mass and college bookstore channels were offset by declines in the sporting goods, mid-tier and department store channels. “They were impacted by bankruptcies and a tough comparison as we had a significant concentration of shipments in last year’s second quarter,” Moss said.
Hanes changed its full-year guidance in part due to the completion of acquisitions of Champion Europe in the second quarter and Pacific Brands Ltd. in the third quarter. Fully reported earnings on a per-share basis have dropped to a range of $1.44 to $1.54 from a previous estimate of $1.51 to $1.57, and operating profit fell to $760 million to $795 million, compared with $780 million to $815 million previously.
As for the rest of the full-year guidance, Hanes maintains its projections of 8% growth in revenue.
Gildan Announces Q2 Results, Makes Acquisition
Earnings decreased too, falling 6% from $102.6 million ($0.42 per share) in Q2 2015 to $96.4 million ($0.41 per share) in this year’s second quarter. A 1.4% slip in revenue in Gildan’s printwear segment along with a 7.9% drop in its branded apparel division were central reasons for the results. The company attributed the declines to exiting certain retailer private label programs, lower prices, inventory destocking and the impact of the strong U.S. dollar abroad.
Gildan also announced on July 27 that it has signed an agreement to purchase Montreal-based Peds Legwear Inc. for $55 million. Expected to close by the end of August, the acquisition should “create revenue growth opportunities by leveraging Gildan’s existing customer relationships to broaden the channels of distribution for the Peds and MediPeds brands and by extending these brands into Gildan’s other product categories,” according to a company statement.
Back in May, Gildan purchased Alstyle Apparel (asi/34817) for $110 million. Taking into account the acquisitions and other factors, Gildan is now projecting that its consolidated net sales for the year will be $2.65 billion. That’s up from a prior projection that put the total at about $2.6 billion.
Proforma Inducts Fran Ford Into Hall Of Fame
“We are honored and proud to have Fran Ford as an advisor, confidant, friend and member of the Proforma Family,” said Greg Muzzillo, founder of Proforma. “Fran’s industry knowledge, experience and expertise have made him instrumental in helping Proforma continue to reach new levels of success and we are thankful for his vision and support.”
Proforma also recognized 32 owners that joined the Million Dollar Club this year, of which nine are first-time members. There were also 18 first-time Multi-Million Dollar Club members, two new Five-Million Dollar Club members and three new 10-Million Dollar Club members.
“Proforma’s Convention is the only event that brings together the most successful distributors and best Supplier Partners to collaborate and share innovative ideas and strategies for growing together,” said Muzzillo. “I’ve never been more optimistic about the future of Proforma.”
Proforma also presented 107 Centurion awards to owners who increased sales by more $100,000 in 2015, recognized 27 owners who qualified for the 2016 Inc. 5000 list of America’s fastest-growing private companies and distributed over 55 business development and sales achievement awards.
More than 800 owners, sales reps, suppliers and support team members spent four days in education sessions, motivational events and sales success celebrations during the event. Next year’s Proforma Convention & Family Reunion will be held July 23-26, 2017, at the Gaylord Palms Resort & Convention Center in Orlando, FL.
Proforma ranks as the third-largest distributor with estimated North American promotional product revenue of $399.6 million in 2015.
BrandAlliance Name Becomes Official
“A lot of hard work has gone into pulling together two large organizations within a year,” said Fred Parker, president of A Brand Company, in a statement. “We’ve exceeded our expectations, and we can now look to the future as we grow together toward becoming a global leader.”
The merger has allowed BrandAlliance to become a solutions-based firm for both the U.S. and Canadian markets. Over the next few months, BrandAlliance has plans to release new brand standards, targeted marketing initiatives and a revamped website.
Hub Pen Co. Adopts Promo Standards, Releases New Pen Styles
Several distributors and suppliers have adopted the Inventory and Order Status standards, including AIA Corporation (asi/109480), Kaeser & Blair (asi/238600), HALO Branded Solutions (asi/356000) and Facilisgroup, which operates a location in Ottawa.
“Facilis offers leading-edge technology to well over 100 of the top distributors in U.S. and Canada, and we’ve been working with Hub Pen for many years,” said Dan Rochette, founder and CTO of Facilisgroup, in a statement. “Now with the adoption of Promo Standards by both Facilis and Hub, a wealth of information will be available at our partners’ fingertips that wasn’t available before.”
In addition, Hub Pen has released six new pen styles: the Spartano (372), Mantaray Stylus (405), Carmelo Hybrid Ink Executive (681), Pompano (481), Crescendo (406) and TerraNova Triple Function Light Up Pen (718). For more information, visit www.hubpen.com.
Trimark Releases New Apparel Styles
Starline Introduces 2016 Holiday Catalog
For more information, contact Marie Hélène Granger, vice president of sales for Eastern Canada, at email@example.com or Dennis Cranston, vice president of sales for Western Canada, at firstname.lastname@example.org.
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Call for Nominations: Supplier Sales Rep/Supplier CSR of the Year
Distributors, do you work with a supplier customer service rep who makes your job infinitely easier, faster and more streamlined? Do you have a supplier sales partner who always puts you and your customers’ needs first and has a “do whatever it takes” attitude to make you shine? If you know the perfect contenders for both awards, email the nominees’ names and details regarding what makes her or him award-worthy to Michele Bell (email@example.com), editor of Supplier Global Resource, by Friday, September 9.
FITS Accessories Appoints Multi-Line Representation
“This appointment strengthens our commitment to building partnerships in the region by providing you with local representatives who will quickly respond to all of your promotional selling needs,” said the company in a statement. “Bruno Bell and Steve Shaw [of Bell Marketing] bring a combined 30 years of industry experience and knowledge.”
REGISTRATION IS OPEN FOR 2017 ASI SHOWS
Registration is now open! Register today using promo code PROMOGRAM at www.asishow.com, or call one of our registration specialists at (800) 546-3300!
REGISTER NOW FOR ACES IN ONTARIO
Each participating supplier will be given a private suite for hosting pre-set 20-minute networking sessions with high-sales-volume Canadian distributors. The booking deadline for exhibitor space is Friday, August 26.
For more information and to register, contact Ryan David, ASI Canada senior account executive, at firstname.lastname@example.org or (800) 546-1425.
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