HanesBrands Updates Guidance Thanks to Strength in Innerwear, Activewear
HanesBrands is proving the innerwear and activewear trends are not ending anytime soon.
The Winston-Salem, N.C.-based innerwear and activewear company — parent to brands such as Hanes, Bali, Playtex, Maidenform, L’eggs and Wonderbra, among others — reported quarterly earnings Thursday morning before the market opened, with top-line revenues rising above both last year’s and 2019’s pre-pandemic levels thanks to strength in innerwear, activewear, government stimulus checks and pent-up demand from coronavirus-related store closures. HanesBrands raised its full-year financial outlook as a result, causing company shares surge nearly 10 percent at the start of Thursday’s session.
View Gallery
Related Gallery
Top Five Men’s Fashion Trends From Spring 2022
Still, increased selling, general and administrative expenses meant profits fell short of 2020’s second quarter. The company logged $128 million in income during the three-month period, compared with $161 million a year earlier.
Across product categories, activewear revenues surged 140 percent, or $236 million during the quarter, year-over-year, thanks to strength in the Champion and Hanes brands, as well as an increase in sales in the sports and college licensing businesses. Sales of intimates increased 150 percent, year-over-year, with triple-digit growth in bras and shapewear. Excluding personal-protective equipment, total innerwear sales increased 62 percent, compared with a year earlier.
In February, the company said it would not pursue the PPE business in the future.
“It’s encouraging to see that COVID-19 vaccines are rolling out around the world,” Bratspies said at the time. “As a result, this rollout, along with slowing retail orders and a flood of competitive offerings have dramatically reduced our future sales opportunities.”
In addition, HanesBrands’ international business grew by 91 percent, or $228 million, during the quarter, year-over-year, or 11 percent, or $48 million, compared with 2019’s second quarter.
HanesBrands now expects net sales for the 2021 fiscal year to be between $6.75 billion and $6.85 billion, up from its previous estimates of $6.2 billion and $6.3 billion. The firm also expects adjusted earnings-per-share to be in the range of $1.68 to $1.76 each, up from the previous range of $1.51 to $1.59.
The company ended the quarter with $3.6 billion in long-term debt and $676 million in cash and cash equivalents.
Shares of Hanesbrands, which closed down 1.77 percent to $18.35 Wednesday, are up more than 24 percent, year-over-year.
Source: Read Full Article