Hanes Q4 Innerwear Operating Profit -30%

Hanes Innerwear operating profit was down 30%, while sales dipped slightly, in the fourth quarter of 2021.

In the three months ended January 1, 2022, the company reported an operating profit of $112,615,000 on sales of $666,086,000, compared to an operating profit of $160,848,000 on sales of $668,193,000 in the three months ended January 2, 2021. Significantly, Hanes includes sales of personal protection equipment, such as face masks, in its Innerwear segment.

The company noted that “U.S. Innerwear sales increase 3% over prior year, excluding PPE, and 19% over fourth-quarter 2019,” and 21% over full year 2019. It added that in the U.S., “Innerwear’s market share increased approximately 150 basis points over 2019 with increased share positions in men’s, women’s, kids and socks.”

For the full year ended January 1, 2022, Hanes reported an operating profit of $573,852,000 in its Innerwear segment on sales of $2,719,788,000, compared to an operating profit the previous year of $718,923,000 on sales of $2,978,009,000.

The company as a whole, which includes other apparel segments, reported net income for the year of $77.2 million on sales of $6.80 billion, compared to a net loss of $75.6 million on sales of $6.13 billion in the year ended January 2, 2021.

Looking ahead at 2022, Hanes CFO Michael Dastugue noted, during the conference call with analysts, that “our outlook assumes full year sales for our U.S. innerwear segment for flat to down 2% over prior year. For the first quarter, we expect innerwear sales to decline approximately 3% driven by” various supply challenges.” ­— NM