HanesBrands Net Sales Jump 25 Pct; Company Unveils Three-Year Growth Plan

HanesBrands Inc. posted $1.51 billion in net sales from continuing operations for the first quarter concluding April 3, 2021, marking a 25 percent jump from $1.20 billion for the timeframe concluding March 28, 2020, according to a Tuesday (May 11) announcement.

The apparel company posted $570 million in U.S. innerwear sales for a 35 percent increase over the prior year, while it posted $364 million in U.S. activewear sales for a 26 percent increase over the prior year. In addition, international revenue increased 18 percent over the prior year, while operating profit increased by 72 percent.

“Our strong first-quarter results showed growth across all business segments,” CEO Steve Bratspies said in the announcement. “Champion continued its rapid growth, driven by strong consumer demand. We gained share in U.S. Innerwear, and our Hanes Total Support Pouch launch shows how our brands can appeal to younger consumers with a combination of innovative products and compelling marketing.”

Bratspies also noted that the firm’s worldwide online sales expanded by over 80 percent.

Management said that HanesBrands anticipates net sales from continuing operations for the second quarter of 2021 to range between roughly $1.56 billion and $1.59 billion.

On the same day that HanesBrands announced its earnings results, the company also revealed a three-year growth plan called “Full Potential.” The roadmap is intended to fuel roughly $1.2 billion in incremental revenue and grow operating margins to 14.3 percent by 2024, according to a Tuesday (May 11) announcement.

“HanesBrands is an amazing company with a portfolio of strong, iconic brands and significant and sustainable competitive advantages,” Bratspies said in the announcement. “Full Potential builds on these advantages to deliver approximately $1.2 billion in topline growth as well as improved profitability over the next three years.”

The news comes as children’s clothing retailer Carter’s said it experienced growth in each of its retail, wholesale and international business segments. The Georgia-based operator of almost 1,000 retail locations said its sales climbed by 20 percent to $787 million for the three months concluding April 3.