HanesBrands Q2 pleases, Champion and innerwear are strong

HanesBrands, a US-based global marketer of branded everyday basic apparel, reported a 1.3% decline in its net sales to $1.73 billion during its second quarter ended on June 27, compared to $1.76 billion in same period last year. However, net income for the quarter rose to $161.8 million from $149.5 million.

“Despite the effects of pandemic-caused disruptions to global economies, our business is in great shape. We performed significantly better than our base-case scenario in both our apparel business and our new protective garment business,” Gerald Evans Jr, Hanes CEO, said in a press release. “Point-of-sale trends are improving for apparel, and in the case of US innerwear basics and US Champion, point-of-sale trends in May and June were higher than pre-Covid levels.”
 
Gross profits for the quarter were down 6.3% to $633 million ($675.5 million). Selling, general and administrative expenses dropped to $391.4 million ($445.9 million). The company’s operating profit rose 5.2% to $241.5 million ($229.6 million). 

Sales of its innerwear segment jumped 66.5% to $1.09 billion ($657.4 million) during the second quarter. However, sales of activewear decreased 52% to $168.3 million ($350.6 million). International sales plunged 19.7% during Q2 FY20 to $456.8 million ($568.8 million).
 
“While there is still near-term uncertainty concerning the ongoing economic impact of the Covid-19 pandemic, we believe we are positioned to drive growth and seize opportunities over the next several years,” Evans Jr said.