HanesBrands Q1 sales jump 25%, bets on Champion
HanesBrands announced on Tuesday a 25 percent jump in net sales for the first quarter ended April 3, 2021.
Net sales totaled $1.51 billion, compared with $1.2 billion for the period ended March 28, 2020 thanks to double-digit growth in both its global innerwear and activewear businesses.
U.S. innerwear sales of $570 million increased 35 percent over the prior year, while U.S activewear sales increased 26 percent to $364 million, driven by growth in the online channel, including champion.com.
Coinciding with first-quarter results, the global leader in iconic apparel brands announced a new three-year growth plan designed to drive approximately $1.2 billion in incremental revenue and expand operating margins to 14.3 percent by 2024.
Dubbed 'Full Potential', the plan puts all bets on the Champion brand by investing in key geographic markets, expanding into women’s and kids’ apparel and casual footwear, and creating a premiere online experience at Champion.com.
More specifically, the plan calls for Champion to become a $3-billion global brand by 2024, representing a 14 percent compound annual growth rate (CAGR) from projected 2021 sales of approximately $2 billion.
The plan will equally drive renewed innerwear growth with marketing that appeals to younger consumers and by expanding its e-commerce and digital capabilities. The company expects global innerwear revenue growth of approximately $200 million through 2024, driven by sales in the United States and Australia.
Finally, HanesBrands will expand its e-commerce and digital capabilities to deliver a seamless consumer experience to drive growth with retail partners and in online channels.
“HanesBrands is an amazing company with a portfolio of strong, iconic brands and significant and sustainable competitive advantages,” said CEO Steve Bratspies.
“Full Potential builds on these advantages to deliver approximately $1.2 billion in topline growth as well as improved profitability over the next three years. We are putting the consumer at the center of everything we do. We’ll do this by investing in innovation that delivers products that meet consumers’ needs and by creating a seamless experience that lets consumers shop for our products how, when and where they want to shop.”
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