Winston-Salem - Causalwear and sock specialist HanesBrands has reported a second quarter hike in sales and operating profit, driven by strong performances across its global innerwear and activewear businesses.
Net sales from continuing operations for the second quarter ended July 3, 2021, totaled US$1.75 billion, an increase of $208 million, or 13 per cent, compared with $1.54 billion for the quarter ended June 27, 2020, which included $614 million in sales of personal protective equipment in response to the COVID-19 pandemic. Excluding PPE, net sales increased 88 per cent over the prior year, driven by strong point-of-sales trends, the overlap of last year’s COVID-related shutdowns and the benefit of transitory items such as government stimulus. “Our iconic brands continue to resonate with consumers around the world, and I’m very encouraged by the progress on our Full Potential growth plan,” said chief executive officer Steve Bratspies. “I’m extremely proud of the way our associates performed under challenging conditions, delivering sales, profit and earnings growth above our expectations and above the second quarter of both 2020 and 2019. We are seeing strong momentum across our business and have raised our outlook for the second half of the year.”
Double-digit growth in the global innerwear and activewear businesses was driven by strong point-of-sale performance as well as the benefit of several transitory items, including retailer inventory restocking, government stimulus and pent-up consumer demand.
Second-quarter income from continuing operations totaled $148 million. This compares to income from continuing operations of $137 million in the prior year period, and income from continuing operations of $150 million, or $0.41 per diluted share in second-quarter 2019. Net income was $128,676, down from $161,181.
In the innerwear business, sales decreased $314 million, or 29 per cent due to the overlap of last year’s $614 million of PPE sales. Basics revenue increased 48 per cent with double-digit growth in each product category while intimates revenue increased 150 per cent with triple-digit growth in both bras and shapewear.
Excluding PPE, Innerwear sales increased 62 per cent over last year driven by strong point-of-sale growth, the overlap of last year’s COVID-related shutdowns as well as the benefit of several transitory items, including retailer inventory restocking, government stimulus and pent-up consumer demand.
Activewear sales grew $236 million, or 140 per cent driven by growth in both the Champion and Hanes brands. Activewear revenue was $53 million, or up 15 per cent driven by growth across the online, wholesale and distributor channels, which more than offset lower sales in the sports and college licensing business.
International segment revenue increased $228 million, or 91 per cent with strong growth in Australia, the Americas, Europe and Asia Pacific driven by strong consumer demand and the overlap of last year’s COVID-related shutdowns. International segment revenue increased $48 million, or 11%.
