HanesBrands continues to derive value from its innerwear business and Champion brand.
The Winston-Salem, N.C.-based innerwear and activewear company — parent to brands such as Hanes, Bali, Playtex, Maidenform, L’eggs and Wonderbra, among others — reported quarterly earnings Tuesday before the market opened, beating analyst expectations and pleasing Wall Street in the process, despite quarterly and full-year losses.
“I’m extremely proud of the HanesBrands team for all it accomplished in 2020 under very challenging conditions and I thank our global associates for their hard work and dedication,” said Steve Bratspies, HanesBrands chief executive officer. “We delivered solid sales growth in the fourth quarter, with continued revenue momentum in our largest businesses and strong market share performance in our innerwear and activewear segments.”
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The group showed strength in the Champion brand, which was up 11 percent in constant currency for the quarter, as well as U.S. innerwear sales, which increased 13 percent for the quarter, year-over-year. HanesBrands also logged $28 million in revenue for personal protective equipment during the fourth quarter.
The company ended the quarter with $909 million in cash and cash equivalents and $3.7 billion in long-term debt. The company is not providing forward-looking guidance, but now anticipates first-quarter 2021 net sales to be between $1.4 billion and $1.5 billion.
HanesBrands’ stock, which closed up 0.69 percent to $15.98 a share on Monday, is up about 15 percent, year-over-year.
“We are implementing our Full Potential plan with the goal of creating a consumer-centric company that delivers long-term growth and higher profitability,” Bratspies said. “I’m encouraged by our rapid progress as we work to simplify our business and transform our organization to move faster, lower costs and focus on our highest-return growth opportunities.”
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