US: Hanesbrands hails debt cut as Q4 profit soars
- Q4 net profit nearly doubles to US$80.4m
- Net sales up 5% to $1.15bn
- CEO highlights “end of era” of high debt leverage
Apparel company Hanesbrands ended fiscal 2012 with a near doubling in net profit following a reduction in debt and its exit from under-performing businesses.
A 5% fourth quarter sales increase helped the US-based sock, T-shirt and underwear maker to post full-year revenues of $4.53bn, up 2%, but full-year net profit fell 38% to $164.7m.
Innerwear was the biggest contributor to the full-year results, growing operating profit by 18% and boosting sales by 3% (and 7% in the fourth quarter).
Outerwear revenues were up 6% in the quarter and 2% for the year, but international sales fell 1% on the year, hit by performance issues and exchange rates.
“We had a very successful year under difficult circumstances,” said company CFO Richard Moss.
“We managed through a $160m cotton inflation bubble with a successful pricing strategy and came out stronger, more innovative and more profitable.”
Chairman and CEO Richard Noll highlighted financial measures taken during the year, saying: “By reducing bond debt by $750m over the past 13 months, we have ended our era of high debt leverage, and the momentum of strong results in the back half of 2012 positions us well for continued profit growth in 2013.”
Hanesbrands is forecasting net sales of $4.6bn in fiscal 2013, operating profit of $500-550m and earnings per share of $3.25-3.40.
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