US: HanesBrands reports 25% jump in FY profit
- Q4 profit dived 31.5% to $28m
- Sales declined slightly to $1.1bn
- FY net income rose 25% to US$266.7m
Apparel group HanesBrands has reported a 25% jump in full-year profit, but admitted that sales softened during the fourth quarter.
For the year, net income rose to US$266.7m as sales rose 7% to reach $4.64bn.
But fourth-quarter profit dived 31.5% to $28m, as sales declined slightly to $1.1bn. The company attributed the drop to an "unexpected and substantial" slowing of orders in December as retailers cut back on their inventories.
"We achieved record earnings and sales in 2011 with strong performance in several of our categories, including underwear and socks, although we were disappointed with late fourth-quarter softness that yielded results below our expectations," said chairman and CEO Richard Noll.
"For 2012, we expect to get through the challenges of the inflation overhang and outerwear wholesale issues while we focus on core growth and delivering strong free cash flow that will be used to reduce long-term debt."
In 2012, the company expects net sales to increase between 2-4%, driven by growth in its innnerwear, international and direct-to-consumer segments.
It expects these gains to be offset by declines in outerwear, which includes the casual and active wear wholesale categories which are sold to screen printers.
Unless you've been living on Mars or have been trapped under something heavy for the past year or so, you won't need telling about the cotton price hikes of recent times....
Top stories on just-style this week include a look at the challenges facing continued garment export growth in Bangladesh, the launch of Adidas' DryDye t-shirts and an interview with Fernando Capell...
- Marks & Spencer to extend mobile phone monitoring
- China tightens on corporate social responsibility
- Outdoor industry's future must be more inclusive
- Factoring: a lifeline for apparel suppliers?
- Responsible apparel sourcing requires teamwork
- Adidas "Reebok sale" would be admittance of defeat
- UPDATE: A&F appoints Horowitz to head Hollister
- Bangladesh taps factory inspectors ahead of review
- New JC Penney CEO “credible but no solution”
- Coats to open new zip factory in Bangladesh
- Ethiopia – the emerging textile and clothing industry
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Wool in the 21st Century: new prospects for a familiar fibre
- Global market review of denim and jeanswear – forecasts to 2020
- Prospects for the Textile and Clothing Industry in Vietnam