Blog: Leonie BarrieSara Lee spin-off

Leonie Barrie | 14 February 2005

Sara Lee’s decision to spin off its apparel business into an independent, publicly traded company certainly seemed to please investors, with shares up 4.1 per cent higher, or 95 cents, to $23.92. The firm’s brands such as Hanes, Champion and Playtex rang up more than $4.5 billion in revenue last year – and the hope is that this will be a mere drop in the ocean once the division is free from the shackles of a large corporate environment. Languishing as it does at the commodity end of the market, there is no doubt that Sara Lee will benefit from the faster reaction times that are inherent in a smaller set-up. 

As for his own track record, the last spinoff overseen by chief executive Steve McMillan was that of Coach Inc in 2000, since when it has churned out sales growth in double-digit percentages every year. Quite a track record, and one that the market will no doubt hope McMillan's successor Brenda Barnes can emulate.


BLOG

Vietnam's textile-garment plan hits hurdles

domestically-made textile inputs remains a major problem that continues to hinder clothing manufacturers in the country....

BLOG

Levi Strauss leads on green supply chain in China

Sustainability remains top of mind for the industry with Levi Strauss, Adidas and C&A ranked amongst the leading brands to have made progress in environmental supply chain management in China over the...

BLOG

UK clothing exports to US to be hit by further 25% duties

Cashmere jumpers, anoraks and swimwear made in the UK and exported to the US are among products being hit by an extra 25% tariff as part of the ongoing dispute between the US and the EU over aircraft ...

BLOG

New US trade trends taking shape?

In a reversal of trends seen in July, the three Central American countries that are the largest suppliers of clothing to the US – Mexico, El Salvador and Honduras – saw a dramatic fall in shipments in...

just-style homepage



Forgot your password?