HanesBrands Inc.’s third-quarter sales increased 14 percent to $1.59 billion, the apparel company reported Wednesday, citing continued acquisition benefits, global supply chain performance and core sales and margin growth in the innerwear and activewear segments.
On that note, the North Carolina-based company—with brands that include Hanes, Champion, Playtex and Maidenform—raised its full-year outlook for net sales to $5.85 billion, or $1.66 to $1.68 earnings per share (EPS), compared to previous guidance of slightly less than $5.9 billion, or $1.61 to $1.66 EPS.
“We had another great quarter of double-digit growth that reflects our continued value-creation potential,” Hanes chairman and chief executive officer Richard Noll said. “We again have increased our operating profit and EPS guidance as we continue to drive growth and margin improvement through innovation and acquisition integration. We also reached another milestone in our strategic use of cash flow with the resumption of share buybacks.”
During the quarter ended Oct. 3, innerwear net sales inched up 3 percent to $667.2 million—owing to strength in bras and shapewear—and operating profit rose 5 percent.
Meanwhile, net sales in activewear grew 22 percent and operating profit increased 39 percent, driven by double-digit growth in the Champion brand in the department store, mid-tier and sporting goods channels as well as April’s acquisition of Knights Apparel, a purchase that’s expected to add around $160 million in net sales this fiscal year.
Elsewhere, the international segment saw sales surge significantly from $215 million to $300.4 million as a result of the purchase of DBApparel in Europe—which contributed net sales of $179 million—and strong results in Japan, despite negative foreign currency impacts.
Net profit for the three-month period jumped from nearly $119 million to $162.2 million, while shares rose 16 percent to $0.50 from $0.43.