HanesBrands’ net sales slip in third quarter

HanesBrands saw net sales decrease in the fiscal third quarter, reflecting the divestment of the US Sheer Hosiery business last year and unfavorable foreign exchange rates.

The clothing brand’s net sales fell 2.5 per cent from the year-ago period to $937 million, with US net sales declining 1 per cent.

International net sales also dipped 1 per cent, which includes a $7 million headwind from exchange rates.

“We are driving a step-function change in our cost structure, increasing operational efficiencies, reducing inventory, and freeing up capital to invest in growth,” said Steve Bratspies, CEO of HanesBrands.

“We expect the benefits of these actions to ramp over the next several quarters, giving us visibility and confidence to deliver continued margin improvement, cash generation, and debt reduction through 2025.”

For the full fiscal year, the company expects net sales to decrease 4 per cent to $3.61 billion.

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