HanesBrands, a leading apparel company headquartered in Winston-Salem, North Carolina, has reported a return to profit in the first quarter (Q1) of the fiscal year.
The company’s net sales for the quarter reached $1.58 billion, which demonstrated significant growth driven by strong demand for their brands in the U.S., Americas, and Europe.The company witnessed a positive growth trend in its global activewear sales, which grew by $23 million or 6% compared to the previous year.
The Champion brand, being a prominent part of HanesBrands’ portfolio, saw a 6% increase in sales globally.
In terms of geographical performance, Champion sales witnessed a 10% growth internationally, while in the U.S., it increased by 2%.However, despite the overall positive performance, HanesBrands faced challenges related to product supply in the U.S.
market during the quarter.
These challenges led to approximately $40 million worth of unfulfilled orders for Champion products in the U.S.
If the product supply had improved as expected, Champion sales in the U.S.
would have increased at a high-teens rate for the first quarter, as stated by the company.On a positive note, the company experienced a 1.5% increase in U.S.
innerwear sales compared to the previous year, surpassing the company’s expectations.
This growth was driven by gains in retail space, higher prices, and a positive product mix.
The strong performance in this category resulted in positive comps, exceeding the rapid growth seen in the previous year.HanesBrands also witnessed a 7% increase in international sales on a constant currency basis.
The growth was primarily driven by the European, American, and Chinese markets.
However, the company faced challenges in Japan and Australia, where constant currency sales declined due to ongoing Covid-related pressures and product delays, respectively.Despite the challenging global operating environment, Steve Bratspies, CEO of HanesBrands, expressed his pride in the company’s strong quarter.
He acknowledged the demand for their brands, particularly the growth of Champion and innerwear on a two-year basis.
Bratspies also emphasized the need to navigate the current environment by focusing on areas within the company’s control, such as investing in their people, brands, and technology.HanesBrands remains confident in delivering on its Full Potential plan, despite the significant challenges posed by inflation, Covid-19 disruptions, and logistical obstacles..
