Hanesbrands axes 250 jobs after Q1 profit plunge

US: Hanesbrands axes 250 jobs after Q1 profit plunge

By just-style.com | 28 April 2009

Underwear specialist Hanesbrands is cutting 250 management posts after unveiling a slump in first quarter profits and a double-digit sales decline.

The company posted a US$19.3m loss for the period, but registered earnings per share of $0.03 after adjustments, down from $0.42 a year ago.

Sales fell 13% to $857.8m, with declines in all business segments.

"Our overall results were in line with our expectations and were significantly impacted by the economic recession," said chairman and CEO Richard A Noll.

"Sales declined in the quarter at a rate consistent with what we had communicated to investors, and we tightly controlled expenses to mitigate the impact of reduced consumer spending."

Hanesbrands reported a single-digit sales decline in the innerwear segment, and double-digit falls in outerwear, international and hosiery.

"Retailers are still experiencing soft sell-through, but are beginning to loosen inventory constraints," said Noll.

"We may see improvements in the second quarter sales rate, with total sales potentially declining in the single digits.

For the full year, the sales scenarios that we depicted in our February investor day meeting still remain intact."

Hanesbrands said the 250 management job cuts would cost the company $15m, with the charges falling mainly in its second quarter.

Sectors: Apparel, Finance

Companies: Hanesbrands