Hanes Q1 Innerwear Sales Rose To $578.9M

Hanes Innerwear sales rose 1.5% to $578.947 million in the first quarter, but segment operating profit sank 19.8% to $102.146 million.

The underwear division of Hanesbrands reported an operting profit of $127.417 million on sales of $570.435 million for the three months ended April 3, 2021.

The Innerwear sales increase this year came on top of a 35% jump in sales in 2021 over first quarter 2020. “The growth in the first-quarter 2022 was driven by retail space gains, a positive mix benefit and the partial-quarter benefit of price increases. This more than overcame last year’s one-time sales benefits from retailer restocking and government stimulus. For the quarter, sales grew in its women’s, men’s, and socks product categories.”

“Segment operating margin of 17.6% decreased approximately 470 basis points compared to prior year. The partial-quarter impact from the price increase and the benefits from volume and mix were more than offset by the expected impact from higher inflation, the higher-than-planned strategic investment in expedited freight to service new retail space gains and new product innovation, as well as increased investments in brand marketing.”

The company continued that Innerwear “space gains” occurred in its “Hanes brand across all product categories and in multiple channels. The company 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.”

For the three months ended April 2, 2022, Hanes as a whole, which produces a variety of apparel, reported net income of $118.702 million on sales of $1.576 billion.