Hanes Buys Australian Retailer Bras N Things

A page from the Bras N Things website.

Hanesbrands signed an agreement to acquire Bras N Things, a sexier retailer of intimate apparel with 170 shops across Australia, New Zealand and South Africa.

In 2017 Bras N Things had sales of approximately $180 million in Australian dollars (about $144 million) and Hanes valued the all cash transaction at approximately $400 million. “The pending acquisition is expected to be accretive to earnings in 2018,” and is expected to close in mid-February.

Hanes CEO Gerald Evans declared, “Bras N Things is a leading intimate apparel retailer and ecommerce business that is a strategic and natural complement to our very successful Bonds underwear business in Australia and New Zealand. Bras N Things has a great business model that appeals to millennial consumers featuring core products supplemented by seasonal product offerings. This consumer-direct sales model has significant potential for expansion into other geographic markets.”

While Evans did not mention possible stores for North America, another company executive did: David Bortolussi, who is president and managing director of Hanes Australasia. In a recent article, based on an interview with him, the Australian Financial Review claimed “there were plans to grow the intimate apparel brand overseas, and Asia, Europe and North America were all possibilities for store expansion.” It quoted Bortolussi as saying, “I see Australia and NZ as an incremental store growth opportunity. In South Africa, if we get the model right, there could be further expansion opportunity.” The publication noted that the corporate owner of Bras N Things, Brett Blundy, “had been rumored to be mulling a sale of the chain for several years.”

Bras N Things currently operates 154 stores in Australia, 10 stores in New Zealand and 7 stores in South Africa.

Bras N Things has a sexier image and many provocative styles than you would not find at Hanes. Overall, the Australian company’s website looks most like the ones for Victoria’s Secret, Frederick’s of Hollywood and Etam. For example the retailer has had the Playboy license since 2008, and notes on its website that “it has become one of our most popular brands with the Bunny Bra being the customer favorite! The bright colors, bold prints and intricate detailing of the Playboy range are made to be seen. Your inner bunny will want to collect them all!” — NM