HanesBrands is proving the innerwear and activewear trends are not ending anytime soon.
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 Thursday morning before the market opened, with top-line revenues rising above both last year’s and 2019’s pre-pandemic levels thanks to strength in innerwear, activewear, government stimulus checks and pent-up demand from coronavirus-related store closures. HanesBrands raised its full-year financial outlook as a result, causing company shares surge nearly 10 percent at the start of Thursday’s session.
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Still, increased selling, general and administrative expenses meant profits fell short of 2020’s second quarter. The company logged $128 million in income during the three-month period, compared with $161 million a year earlier.
Across product categories, activewear revenues surged 140 percent, or $236 million during the quarter, year-over-year, thanks to strength in the Champion and Hanes brands, as well as an increase in sales in the sports and college licensing businesses. Sales of intimates increased 150 percent, year-over-year, with triple-digit growth in bras and shapewear. Excluding personal-protective equipment, total innerwear sales increased 62 percent, compared with a year earlier.
In February, the company said it would not pursue the PPE business in the future.
“It’s encouraging to see that COVID-19 vaccines are rolling out around the world,” Bratspies said at the time. “As a result, this rollout, along with slowing retail orders and a flood of competitive offerings have dramatically reduced our future sales opportunities.”
In addition, HanesBrands’ international business grew by 91 percent, or $228 million, during the quarter, year-over-year, or 11 percent, or $48 million, compared with 2019’s second quarter.
HanesBrands now expects net sales for the 2021 fiscal year to be between $6.75 billion and $6.85 billion, up from its previous estimates of $6.2 billion and $6.3 billion. The firm also expects adjusted earnings-per-share to be in the range of $1.68 to $1.76 each, up from the previous range of $1.51 to $1.59.
The company ended the quarter with $3.6 billion in long-term debt and $676 million in cash and cash equivalents.
Shares of Hanesbrands, which closed down 1.77 percent to $18.35 Wednesday, are up more than 24 percent, year-over-year.
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