North Carolina-based HanesBrands (asi/59528) has reported third-quarter total sales of $1.4 billion dollars, a 17% year-over-year rise. Net income fell to $118.9 million, or $1.16 per share, because of expenses related to acquisitions. Excluding one-time costs, however, earnings jumped to $1.73 from $1.23.
“Our business continues to perform very well, particularly in an uncertain consumer environment,” said Hanes chairman and CEO Richard A. Noll. “We have delivered more earnings in the first three quarters of 2014 than we did all of last year.”
Revenues increased in each business segment, including a 16% rise in innerwear sales. The sharp jump was aided by the company’s 2013 Maidenform acquisition. Innerwear’s operating profit margin increased to 19.8%, despite what the company called an “uneven and challenging” retail environment. Direct to consumer segment sales rose 13% and overall activewear sales increased by 5%. Retail activewear sales rose by 1%, while Gear for Sports revenues increased by double digits.
Based on its third-quarter results, HanesBrands has modestly raised its full-year 2014 financial outlook. The company’s guidance range for sales remains approximately $5.35 billion to $5.38 billion, while its adjusted operating profit forecast is now between $750 million and $770 million, up from prior projections. HanesBrands expects full-year earnings in the range of $5.55 to $5.65 per share.