US: Hanesbrands FY profit leaps after Maidenform buy
- FY net profit up 101% to US$330.5m
- Q4 net profit down 60% to $32.3m on charges
- FY net sales up 2% to $4.63bn
The US company’s fourth quarter profit was impacted by $80m of charges associated with the acquisition, but sales for the three months to 28 December were up 12%, with Maidenform supplying 9% of that growth.
Hanesbrands said lower cotton costs and the benefits of its Innovate-to-Elevate programme had improved its profitability.
As a result, the company increased its guidance for fiscal 2014, predicting net sales of close to $5.1bn and adjusted earnings per diluted share of $4.60-4.80.
Describing the performance as “outstanding”, Hanesbrands chairman and CEO Rich Noll said: “We are raising our 2014 earnings guidance because we are increasingly confident that the momentum of our Innovate-to-Elevate strategy will deliver even better results.
“The combination of our brand power, low-cost supply chain and innovation platforms is generating value and growth opportunities.”
Hanesbrands’ Innerwear segment posted sales up 20% for the quarter and 5% for the year, boosted by a “significant” contribution from Maidenform.
Activewear – previously known as Outerwear – recorded sales up 1% in the fourth quarter and full-year, but international operating profits were impacted by currency, rising 1% in the quarter but flat for the year.
Hanesbrands said its direct-to-consumer sales rose 14% in the fourth quarter, and 2% in the full year.
US apparel maker Hanesbrands is gearing up to integrate newly-acquired DBApparel into its business using its its Innovate-to-Elevate platform and low-cost global supply chain as a lever for growth....
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Former Maidenform CEO Maurice Reznik is to join lingerie, sleepwear and sock manufacturer Delta Galil Industries as CEO of women's intimate apparel for the US and UK, and president of its US segment....
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