(Filed Under wholesale Lingerie News). Hanesbrands Innerwear “net segment sales” in the second quarter fell 3.4% while Innerwear “segment operating profit” fell 10.4%.
For the company as a whole, which includes Activewear and International divisions, net income fell 18.3% to $140.6 million on 4.2% higher sales of $1.715 billion.
For the Innerwear division alone, operating profit for the quarter ended June 30 was $159.1 million on sales of $694.7 million, compared to operating profit of $177.6 million on sales of $719.0 million in the three months ended July 1, 2017.
The decreases in Innerwear sales and profits were “a result of raw material inflation and mix of products sold,” explained the company. “Sales of Innerwear basics increased slightly as point-of-sale trends improved, men’s underwear sales increased, and women’s underwear returned to growth. Innovation continues to work, with strong performance of the newly launched Hanes Comfort Flex Fit men’s boxer briefs.”
Hanes continued, “Innerwear Intimates sales decreased in the quarter, although progress was made on key aspects of the company’s plan to stabilize the business and then return to growth. As the company managed through retailer door closures and market trends, it successfully gained traction with bra space gains in the mass channel and new bra programs in the mid tier channel. The company continues to prepare for a relaunch of its shapewear programs late in the third quarter.”
The company added that, overall, it “expects to deliver higher levels of organic growth in the second half as a result of continued execution of strategic growth initiatives, continued product innovation success, back-to-school alignment with key U.S. retailers, and action plans to stabilize the Innerwear segment’s U.S. intimate apparel business.”
Hanes CEO Gerald Evans said of the Innerwear division, “We continue to address the challenging environment for intimate apparel and expect our turn-around plan to gain additional traction by the end of the year.”
Disclaimer: The views expressed in comments published on bodymagazine.us are those of the comment writers alone. They do not represent the views or opinions of Bodymagazine or its staff.
NOTE: Your Email will not be displayed.