US: Cotton costs burden Hanesbrands Q2 profit
- Q2 underlying profit down 13.5% to US$67.3m
- Net sales up 1% to $1.18bn
- CEO highlights strong innerwear performance
Basic apparel maker Hanesbrands recorded a diminished profit in its second quarter despite a slight sales increase, as the company continued to be impacted by historic high cotton costs.
The US company’s reported net profit of US$1.2m – down from $86.8m for the same period last year – was impacted by its sale of loss-making imagewear divisions earlier this year, but underlying figures also showed a profit decline of over 13%.
It blamed “substantially higher cotton costs” for the slump, but pointed to a stronger performance from its innerwear business, driven by growth in men’s underwear, children’s underwear and women’s panties and bras.
Hanesbrands added that the majority of the cotton inflation was now behind it, leaving it to predict a stronger second half of 2012.
“Our business had a solid quarter, and we are performing slightly ahead of our plans for the year, especially in the innerwear segment,” said company chairman and CEO Richard Noll.
“While we still have a long way to go, we are well positioned for the second half of the year.”
Hanesbrands expects to report full-year earnings per diluted share of $2.50-2.60 on sales of $4.52-4.57bn.
A number of major clothing brands have been accused of "fuelling modern-day slavery" through their failure to address child and forced labour in their supply chains, according to a report released by ...
US clothing manufacturer Hanesbrands has revealed plans to double production at its Woolwine fabric plant in Virginia by adding new knitting machines....
- Expensive US dollar hitting H&M sourcing costs
- Enthusiasm for tech in outdoor apparel on rise
- 2015: Welcome to the new fashion consumer
- Apparel industry gains traction says IAF chief
- Performance apparel set for continued growth
- Kanati pulls production out of Pakistan
- Sears Holdings cuts 115 corporate jobs
- H&M Q4 mixed but plans 400 new stores
- JC Penney to close 10 Foundry stores
- UK clothing sales see strongest rise in two years
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead