HanesBrands Q3 sales drop 2.5%

HanesBrands announced on Thursday net sales for the third quarter dove 2.5% to $937 million, due to the sale in the prior year of the U.S. sheer hosiery business.

The North Carolina-based firm saw U.S. net sales decrease 1%. Despite the decline in the quarter, the company said its strategy of consumer-centricity is working. The company’s point-of-sale trends outperformed the total market year-to-date, as increased brand investments and product innovation in its Hanes, Maidenform and Bali brands drove permanent retail space and market share gains.

Meanwhile, international net sales increased 1%, as sales grew in the Americas and Asia and were consistent with prior-year in Australia. 

HanesBrands completed the sale of the intellectual property and certain operating assets of the global Champion business to Authentic Brands Group, in September. 

“We delivered another strong quarter with operating profit, earnings per share, and cash flow results that exceeded our expectations. In addition, we have further reduced our leverage, expect a return to revenue growth in the fourth quarter, and raised our full-year outlook for profit and cash flow,” said Steve Bratspies, CEO. 

“Our strategic actions to create a more focused, simplified business are working. We are driving a step-function change in our cost structure, increasing operational efficiencies, reducing inventory, and freeing up capital to invest in growth. We expect the benefits of these actions to ramp over the next several quarters, giving us visibility and confidence to deliver continued margin improvement, cash generation, and debt reduction through 2025.”

Looking ahead, for fiscal year 2024, which ends on December 28, 2024, the company currently expects net sales from continuing operations of approximately $3.61 billion, which includes projected headwinds of approximately $50 million from last year’s U.S. Sheer Hosiery sale and approximately $42 million from changes in foreign currency exchange rates. 

For fourth-quarter 2024, the company currently expects net sales from continuing operations of approximately $900 million.