• Q3 profit surged 153% to US$41.1m
  • Sales fell 8% to $1.06bn
  • Distribution changes to lift sales 5% in 2010

Apparel group Hanesbrands posted a 153% surge in third quarter profit to US$41.1m, driven by lower expenses and cost reduction initiatives.

The company, whose brands include Playtex, Champion, Wonderbra and Hanes, said sales in the three months to 3 October fell 8% to $1.06bn, but added that distribution changes would net a 5% sales increase in 2010.

"Given that we are in the midst of a recession, we had very good profit growth in the quarter and solidified business momentum for 2010," said Hanesbrands chairman and CEO Richard A Noll.

"We have built a platform for future growth through our continued brand investments and low-cost global supply chain.

"We are protecting margins, reducing debt and substantially ramping up our production capacity to support a strong 2010, in which we expect shelf-space and distribution gains to add approximately 5% to our sales."

Hanesbrands also announced that it was closing a sheer hosiery manufacturing facility in Winston-Salem, with the loss of 240 jobs, in 2010.

The company blamed the long-term decline in US sales of sheer hosiery.

For the full earnings release, click here.

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