Hanesbrands Inc a leading marketer of innerwear, outerwear and hosiery apparel, reported results for the 2007 third quarter.
Total net sales increased by 3.1 percent to $1.15 billion, and earnings per diluted share decreased to $0.40 primarily as a result of higher interest expense associated with the company's independent structure following its spinoff in September 2006.
"We delivered solid performance in the quarter," said Hanesbrands Chief Executive Officer Richard A. Noll. "We increased sales in a mixed retail market, we executed well against our initiatives, and we generated strong cash flow that we used to prepay debt and repurchase shares."
For the quarter and the first nine months, the company has recorded strong sales growth in the outerwear segment, while sales of innerwear, the company's largest segment, have declined.
Innerwear sales for the first nine months are down 0.7 percent. The decline was primarily a result of softness in children's underwear and licensed male underwear in the department store channel, although continued strong intimate apparel and sock sales partially offset the decline.
Outerwear segment sales increased by 4.7 percent for the first nine months, reflecting strong sales of Hanes brand casualwear and Champion brand activewear.
The strong outerwear performance has been fueled by a return to focusing on basic apparel in the mass retail channel for casualwear.
International sales increased by 2.6 percent year-to-date on the strength of the European casualwear business. Year-to-date sheer hosiery segment sales are down by 0.9 percent, significantly better than historical trends, while hosiery sales increased in the quarter by 13.1 percent on the strength of core product growth.
Total net sales increased by 3.1 percent to $1.15 billion, and earnings per diluted share decreased to $0.40 primarily as a result of higher interest expense associated with the company's independent structure following its spinoff in September 2006.
"We delivered solid performance in the quarter," said Hanesbrands Chief Executive Officer Richard A. Noll. "We increased sales in a mixed retail market, we executed well against our initiatives, and we generated strong cash flow that we used to prepay debt and repurchase shares."
For the quarter and the first nine months, the company has recorded strong sales growth in the outerwear segment, while sales of innerwear, the company's largest segment, have declined.
Innerwear sales for the first nine months are down 0.7 percent. The decline was primarily a result of softness in children's underwear and licensed male underwear in the department store channel, although continued strong intimate apparel and sock sales partially offset the decline.
Outerwear segment sales increased by 4.7 percent for the first nine months, reflecting strong sales of Hanes brand casualwear and Champion brand activewear.
The strong outerwear performance has been fueled by a return to focusing on basic apparel in the mass retail channel for casualwear.
International sales increased by 2.6 percent year-to-date on the strength of the European casualwear business. Year-to-date sheer hosiery segment sales are down by 0.9 percent, significantly better than historical trends, while hosiery sales increased in the quarter by 13.1 percent on the strength of core product growth.
