Hanes Q4 Sales +4.5%

Fourth quarter net sales at Hanes rose 4.5% to $888.47 million, with the company reporting a loss of $12.88 million, which included a loss of $58.55 million from discontinued operations.

The company, which sold its Champion business late last year, had reported a profit of $77.94 million on sales of $850.28 million in the period ended December 30, 2023. In other recent moves designed to focus on growth, the firm announced in January that it will cost all of its U.S. outlet stores.

Explaining the financial results, CEO Steve Bratspies declared, “we delivered a strong quarter and full-year with results across all key metrics exceeding our expectations as the benefits of our transformation strategy are clearly working. We enter 2025 as a new company. We are a more simplified, focused business with a powerful asset base and significant competitive advantages. We believe we are well positioned to build on fourth quarter’s momentum and deliver positive sales growth, additional margin expansion, strong cash generation and continued debt reduction, providing us multiple levers to create additional shareholder value in 2025 and beyond.”

As it has become a more innerwear-focused company, Hanes revealed that during the year “gross margin and adjusted gross margin increased 380 and 400 basis points, respectively, to 43.9% and 44.1%, respectively.”

Hanes’ “U.S. net sales increased 3% over prior year driven primarily by innerwear innovation, including Hanes Absolute Socks, Hanes Moves, Hanes Supersoft and Bali Breathe, as well as incremental holiday programming, and new category growth. Operating margin of 23.1% increased approximately 525 basis points over prior year. The increase was driven primarily by the benefits from cost savings initiatives and lower input costs, which helped fund a 30% increase in brand investments to drive consumer demand behind new product innovation in both men’s and women’s.”

Hanes added that its “international net sales increased 2% on a reported basis, which included a $9 million headwind from unfavorable foreign exchange rates. International sales increased 6% on a constant currency basis compared to prior year as sales grew in Australia, the Americas, and Asia. Operating margin of 12.6% decreased approximately 550 basis points compared to prior year driven primarily by transactional foreign exchange headwinds, business mix, and brand investments, which was partially offset by lower input costs and the benefits from cost savings initiatives.”

For the full year ended December 28, 2024 Hanes reported a loss of $320.4 million on sales of $3.51 billion compared to a loss of $17.7 million on sales of $3.64 billion the year before.

At the same time it announced its financial results, Hanes reported that CEO Bratspies will exit that position and leave the board of directors at the end of 2025. It added that the “HanesBrands board has begun a comprehensive search to identify the company’s next CEO.”

Above, From the Hanes website: Hanes Originals Women’s SuperSoft Comfywear French Terry Hoodie and the Bali Breathe Lightweight T-Shirt Bra.