HanesBrands, parent company of Hanes Branded Printwear (asi/59528), announced revenue of $1.76 billion for the third quarter of 2016, up 11% from the same quarter last year. The supplier’s operating profit for its innerwear segment, which accounts for the bulk of its sales, increased 2%. Hanes attributed the gain to a successful “focus-on-the-core” initiative that saw high single-digit growth combined for men’s, women’s and children’s underwear.
“As forecasted, we delivered strong growth in the third quarter, and we are generating record cash flow,” said Hanes Chief Executive Officer Gerald W. Evans Jr in a press release. “Our sales initiatives have re-accelerated organic growth in several core categories, including 2 percent growth in the quarter for the Innerwear segment. Our acquisitions, both past and present, are performing extremely well. Our inventory level is declining, and cash flow from operations is already $300 million ahead of last year. Our business is unfolding as expected this year, and we remain confident in our ability to deliver on our full-year guidance.”
The company reported a 2% drop in its activewear segment, which contains its promotional product apparel business. Decline in that segment was attributed to bankruptcies of certain sporting goods retailers. However, Champion, Hanes Activewear and college bookstore sports apparel all increased sales.
Hanes changed its full-year guidance to reflect year-to-date performance and expectations for the fourth quarter. Fully-reported earnings on a per-share basis have dropped to a range of $1.45 to $1.49 from a previous estimate of $1.44 to $1.54 and operating profit jumped to $807 million to $822 million, compared with $760 million to $795 million previously.
As for the rest of the full-year guidance, Hanes maintains its projections of 8% growth in revenue.