Champion continues to drive growth at HanesBrands
HanesBrands announced on Thursday that its Champion sportswear brand posted sales growth of more than 50% outside of the U.S. mass channel in the second quarter of 2019, helping the American basic apparel company achieve better than expected earnings.
HanesBrands’ overall net sales in the second quarter ended June 29, 2019, increased 3% to $1.76 billion, up from $1.72 billion in the prior-year period. Champion’s strong performance drove a 10% increase in sales in the company’s activewear segment, while the international segment posted an expectation-topping 4%. Innerwear sales fared less well, declining 2.3%.
The company is looking to turn the segment around, however, explaining that product innovations are in the pipeline for innerwear brands Hanes, Maidenform, Bali, DIM and Bonds, including new bra launches, cooling developments for shapewear and new compression technology for hosiery.
Champion’s growth was achieved across geographies, including North America, Europe, Asia and Australia, and HanesBrands is now looking to reinforce the brand’s international presence, introducing branded stores to China in collaboration with a retail partner, while also joining forces with a second retail partner in order to accelerate expansion in 2020.
HanesBrands’ second-quarter net income totaled $154.0 million, a 9.5% increase from the $140.63 million reported by the company in the prior-year period. Diluted earnings per share were $0.42, up from $0.39.
For the first half of 2019, the company reported $3.35 billion in net sales, representing a 5.1% increase compared to the prior-year period’s $3.19 billion, while net income rose 6.1% from $220.0 million to $233.5 million.
“Our successful growth strategies drove strong second-quarter results and first-half momentum, including outstanding Champion brand growth, very effective product innovation, international growth, and continued consumer-direct sales growth,” said HanesBrands CEO Gerald W. Evans Jr. in a release. “This momentum combined with our second-half plans and visibility gives us confidence in our ability to achieve full-year guidance at the midpoint or higher.”
Looking forward, HanesBrands has reiterated its full-year 2019 financial guidance, and still expects to see net sales of between $6.885 billion and $6.985 billion in net sales, and EPS in the range of $1.59 to $1.67.
The company also issued outlook for the third quarter, predicting net sales in the range of $1.84 billion to $1.875 billion, and EPS of between $0.49 and $0.52.
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