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Industry Talk

HanesBrands exceeds expectations in Q1

Company exceeded guidance for sales, operating profit, operating margin and earnings per share despite an increasingly challenging global operating environment.

10th May 2022

Knitting Industry
 |  Winston-Salem, NC, USA

Knitted Outerwear, Sports/​Activewear

HanesBrands Inc. a global apparel leader, has announced results for the first quarter of 2022, where it exceeded guidance for sales, operating profit, operating margin and earnings per share.

“I’m very proud of our team for delivering another strong quarter in an incredibly challenging time as we exceeded expectations for sales and earnings per share,” said Steve Bratspies, CEO. “We saw continued strong demand for our brands in the quarter, with global Champion and innerwear growth accelerating on a two-year basis.”

“At the same time, the global operating environment has deteriorated significantly over the past three months, with accelerating inflation, continued COVID-19 disruptions and logistical challenges. In this environment, we are highly focused on executing in the areas we control. We are unwavering in our commitment to investing in our people, brands and technology, and I remain confident that we will deliver on our Full Potential plan,” Bratspies continued.

First-Quarter highlights

HanesBrands exceeded guidance for sales, operating profit, operating margin and earnings per share despite an increasingly challenging global operating environment. The better-than-expected performance was driven by continued strong consumer demand for its brands and increased SG&A efficiency as the Company benefits from its Full Potential initiatives.

The company positively comped substantial prior-year growth rates. Revenue growth accelerated on a two-year stack basis for the global Champion brand, both domestically and internationally, as well as for each of its business segments; Innerwear, Activewear and International. Sales in all segments as well as for the global Champion brand remain meaningfully above pre-pandemic levels.

Champion launched its ‘Win with Women’ campaign, continuing to expand product offerings for younger female consumers. The campaign celebrates women in sports and fuels confidence for women to feel comfortable in their own skin. The campaign is centred on Champion’s Soft Touch sports bras and leggings and is supported by a fully integrated marketing campaign.

The Hanes Total Support Pouch innovation platform continued to drive increased engagement with younger male consumers. HanesBrands built upon this successful innovation by launching a new platform that includes its X-Temp technology, providing cooling and wicking benefits. In April, the company leveraged its global operating capabilities to simultaneously launch Total Support Pouch with X-Temp in the U.S. and Australia, supported by marketing campaigns tailored to regional audiences.

New retail space gains in U.S. Innerwear business. The company gained retail space in its Hanes brand across all product categories and in multiple channels. It also gained retail space with its Maidenform shapewear products and smart-size bras in the mass channel as the brand continues to innovate, attract younger consumers and diversify its distribution.

Robust product and innovation pipeline developed in both its Innerwear and Champion businesses as the company is seeing the benefits of its global design initiatives under the Full Potential plan. Innovation and design are moving at a faster pace and the product pipeline is the broadest it has been in decades, positioning the company for continued growth in 2023, 2024 and beyond.

HanesBrands returned $77 million to shareholders, including $52 million from its regular quarterly dividend and $25 million in share repurchases in the quarter.

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