Apparel group HanesBrands, headquartered in Winston-Salem, North Carolina, announced a slight decrease of 1% in revenues for the fourth quarter. While sales in its innerwear and activewear segments declined, the company managed to achieve solid earnings growth. HanesBrands reported net sales of $1.75 billion for the fourth quarter, compared to $1.77 billion in the same period the previous year. However, constant currency sales actually increased slightly. The decline was primarily due to decreases in sales in the activewear and innerwear segments. Activewear net sales fell by 6.7% to $543.0 million, while innerwear sales dropped 4.1% to $569.6 million.

On a positive note, HanesBrands experienced a 6.9% increase in sales in its international segment, amounting to $650.8 million. This growth was seen across all regions where the company operates. HanesBrands’ Champion brand, which is part of its portfolio, saw a significant 22% increase in sales both domestically and internationally. Cross-company consumer-directed sales also performed well, with constant currencies showing a notable 17% rise.

HanesBrands reported a quarterly net income of $185.0 million, up from $150.0 million in the same period the previous year. Diluted earnings per share (EPS) also increased by 24% from $0.41 to $0.51. CEO Gerald W. Evans Jr. expressed satisfaction with the company’s performance, highlighting the strength of its underlying business fundamentals and the achievement of record operating cash flow. For the full fiscal year 2019, HanesBrands experienced a 2% increase in net sales, totaling $6.97 billion, up from $6.80 billion the previous year. The Champion brand contributed $1.9 billion to these annual sales, representing a significant 40% increase compared to the previous year (excluding C9 Champion sales in the U.S. mass channel).

HanesBrands’ annual net income amounted to $600.7 million, up from $539.7 million the previous year, with EPS increasing by 11% to $1.64, up from $1.48. Looking forward to 2020, the company expects annual sales to range between $6.68 billion and $6.78 billion, with EPS projected to be between $1.60 and $1.68. In the first quarter, net sales are predicted to be between $1.466 billion and $1.496 billion, with EPS projected to range from $0.17 to $0.20.

Sources:

1. Bloomberg: Hanesbrands Reports Sales That Beat Estimate, Sees Strong 2020
2. Fibre2fashion: HanesBrands reports Q4 net sales of $1.75 bn