Gerald Evans Jr is to step down as CEO of basic apparel and activewear maker HanesBrands at the end of the current fiscal year, following more than three and a half decades with the company.
Evans joined Hanes in 1983 and was appointed CEO in 2016. Under his leadership, Hanes says it has increased earnings per share, “significantly” strengthened its balance sheet, generated quarterly organic sales growth for more than two years, increased annual revenue to nearly US$7bn, and generated a record $2.1bn in cumulative operating cash flow over the past three years.
It adds Evans has notified the Hanes board of directors of his decision to retire at the end of the current fiscal year, which ends 2 January 2021.
“Gerald has been an invaluable member of the Hanes team during his 36 years of dedicated service,” says chairman Ronald Nelson. “Under his leadership, the company has expanded its geographic footprint, broadened its portfolio of premium brand offerings, and pioneered product, process and supply chain innovation, helping transform Hanes into the world’s largest everyday basic apparel company.”
Evans adds: “After more than three and a half decades at Hanes, I am confident that now is the right time for the company to transition to its next generation of leadership.
“I am confident that Hanes is well-positioned to achieve its full potential and am pleased to work alongside the rest of the board and management team to provide a smooth handoff to our next CEO.”
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By GlobalDataHanes says its board has commenced a “comprehensive search process” to identify its next CEO. The board expects to consider both internal and external candidates.
B Riley analyst, Susan Anderson, notes: “During his time as CEO, Evans has executed a successful strategy of generating cash, most recently beating their goal of $800m of cash flow in FY19 with $803m in operating cash flow, which was used to help reduce debt. In addition, Evans has helped expand the company’s footprint internationally and also successfully executed growing the Champion brand to where it is today and on track to reach $2bn in annual sales.”
She adds there is “ample time” for the board to identify a new CEO to fill the role by the 2 January 2021 retirement date.
“Evans has given the company roughly nine months to execute their search, which should be enough time to find a qualified candidate. Hanes noted that they are currently considering both internal and external candidates, with a preference of someone who has experience on the consumer side, familiar with manufacturing and all channels of distribution including digital, and understands how to operate a global business.”
Anderson says B Riley believes Evans “will be leaving the company in good shape” as he has positioned Hanes for strong cash flow generation, diversified into global markets, reduced debt, and improved the efficiency of the supply chain.”
Earlier this week, the Winston-Salem, North Carolina, based business said it has launched its C9 Champion performance athleticwear exclusively with Amazon Fashion worldwide as part of a multiyear agreement following the end of a long-term deal with Target Corp.
