(Filed Under wholesale Lingerie News). Hanes Innerwear sales, excluding personal protection equipment (PPE), rose dramatically in the second quarter over the same periods in both 2020 and 2019.
“Basics revenue increased 48% with double-digit growth in each product category while intimates revenue increased 150% with triple-digit growth in both bras and shapewear,” the company reported.
In early 2020 Hanes produced a huge quantity of face masks and other PPE and recorded those sales in its Innerwear segment. “Excluding PPE, Innerwear sales increased 62% 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. Operating margin of 23.8% decreased 400 basis points compared to prior year due to fixed-cost deleverage from lower sales, higher expedite costs from stronger-than-expected demand in basics and intimates as well as increased investments in brand marketing.”
Hanes Innerwear sales for the three months ended July 3, 2021 were $780.65 million compared to $1.095 billion in the same period in 2020 (which included $614 million of net sales of personal protective equipment). Innerwear segment operating profit was $186.17 million compared to $304.52 million in the same quarter the year before.
Hanes Innerwear sales “increased $123 million, or 19%, compared to second-quarter 2019, with comparable double-digit growth in both basics and intimates. The growth was driven by strong underlying point-of-sale growth, yielding approximately 160 basis points of market share gains, as well as the benefit of certain transitory items, such as retailer inventory restocking and government stimulus, which drove category growth rates above historical levels. Operating margin expanded 150 basis points to 23.8% driven by volume leverage and sales mix, which more than offset higher expedite costs and increased investments in brand marketing.”
Hanes revealed that its Innerwear operating margin in the second quarter was far higher at 23.8%, than for its other divisions which include Activewear (10.2%), International (12.9%) and Other (10.5%).
Hanes as a whole earned $128.7 million on sales of $1.751 billion in the second quarter, compared to $161.2 million on sales of $1.543 billion in the three months ended June 27, 2020. —NM
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