HanesBrands Records Double-digit Growth for Three Straight Quarters
HanesBrands announced that it has had double-digit growth in net sales for three consecutive quarters.
According to financial results the company released last week, net sales increased 17 percent year-on-year to $1.40 billion, adjusted operating profit excluding actions rose 23 percent to $217 million, and adjusted diluted earnings-per-share rose 41 percent to $1.73.
HanesBrands has seen increases in all four of its apparel categories. Innerwear sales rose 15.7 percent to $648.3 million, active wear rose 4.9 percent to $424.7 million, direct to consumer is up 12.7 percent to $112.7 million, and international up 62.7 percent to $215 million.
This news comes shortly after HanesBrands announced its acquisition of DBApparel (DBA) in August. Its 2013 acquisition of Maidenform played a key role in increasing innerwear net sales.
According to a report by the Winston-Salem Journal, the acquisition of DBA actually contributed to a 5 percent decline in third-quarter net income. Diluted earnings were $1.16, which is 7 cents lower than the third quarter of 2013. Excluding acquisition contributions, however, sales went up by 1 percent compared to the third quarter of 2013, with DBA contributing $81 million.
Hanesbrands reported that it took about $63 million in integration and other charges during the quarter after the $528 million deal for DBApparel. However, some integration costs were related to the Maidenform deal.
Hanes has started planning cross-company integration for DBA, and expects to apply its Innovate-to-Elevate strategy to leverage DBA’s self-owned global supply chain. Hanes completely integrated Maidenform within one year of closing the deal.
For more information, visit www.hanesbrands.com.