HanesBrands posts better-than-expected quarterly sales amid headwinds
HanesBrands announced on Friday better-than-expected fourth-quarter sales, which fell 6% to $1.47 billion, which included a $55 million unfavorable impact from foreign exchange rates, compared to last year.
The Winston-Salem, North Carolina-based company said Champion brand sales decreased 18% on a reported basis, while innerwear sales decreased 19% compared to last year, and activewear sales declined 16% compared to last year.
International sales decreased 12% on a reported basis. In its continuing operations, the company swung from income of $68 million in the fourth quarter of 2021 to a loss of $418 million in the fourth quarter of 2022.
“We delivered fourth-quarter results at or above our guidance as we continue to take actions to navigate the extremely challenging environment,” said Steve Bratspies, CEO.
Net sales from continuing operations decreased 8% to $6.23 billion for the full-year 2022, while loss from continuing operations totaled $131 million.
“HanesBrands is a stronger, more disciplined company than we were even a year ago, and we’re not standing still. We have created a clear path to improving cash flow and margins as the year progresses. We shifted our capital allocation strategy, eliminating the dividend as we commit to reducing debt. We remain confident in our ‘Full Potential’ plan and in achieving our long-term financial targets.”