Hanes Innerwear Sales -4.5%; Profit -28.9%

Image promoting Hanes Originals underwear on the company website.

HanesBrands Innerwear segment sales declined 4.5% in the first quarter to $553.067 million, compared to $578,947 million in the same period last year.

Meanwhile Innerwear segment operating profit plunged 28.9% to $72.608 million from $102.146 million in the three months ended April 2, 2022.

Hanes claimed the declines in Innerwear “were ahead of the company’s outlook,” adding that “the year-over-year sales performance was driven by macroeconomic pressures that weighed on consumer spending, which more than offset the partial quarter benefit from wrapping last year’s mid-quarter price increase. Operating margin of 13.1% increased approximately 480 basis points sequentially as its operations normalized following the fourth-quarter 2022 manufacturing time out actions taken as part of its 2022 inventory reduction initiative. As compared to first-quarter last year, the segment operating margin decreased approximately 450 basis points. The impact from lower sales volume, input cost inflation and an unfavorable product mix more than offset the benefit from ongoing Full Potential cost savings initiatives as well as the wrap from last year’s mid-quarter price increase.”

Hanes, which has multiple segments and sells a variety of apparel worldwide, reported a combined company loss of $34.404 million on sales of $1.389 billion in the first quarter of 2023 compared to a profit of $118.702 million on sales of $1.576 billion last year.

“On a constant currency basis, net sales decreased 10% due to the macro-driven slowdown in consumer spending in the U.S. and Australia.”