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...
- 2014: Year in review - Sourcing winners and losers
- COMMENT: The decline of the buying office
- 2014: Year in review - Brand winners and losers
- 2014: Year in review - Retail winners and losers
- Bangladesh: Raising the bar on apparel exports?
- Report urges overhaul of Cambodia factory safety
- Bangladesh knitting worker killed by faulty lift
- Bangladesh factory improvements “will take years”
- North Face debuts locally-grown "backyard" hoodie
- Tommy Hilfiger launches solar-powered jacket