Sara Lee Branded Apparel, which will be spun off from the parent company this summer under the Hanesbrands Inc. moniker, reported net sales of $1.18 billion for the fiscal second quarter ended December 31, down 5% compared to the same period last year. The decrease was was said to be largely driven by a 3% decline in overall volume, primarily due to planned exits of certain low-margin fleece and sleepwear businesses and continued weakness in the hosiery category. Sales volumes were reportedly strong for Hanes men's and boy's underwear and C9 by Champion athleticwear.
Operating segment income for for Q2 was up 10% to $169 million, compared to $154 million for the second quarter of fiscal 2005. Improved inventory management, lower SG&A expenses and favorable cotton costs more than offset the effects of lower unit volumes and pricing pressure during the quarter.
Year-to-date, Branded Apparel reported net sales of $2.32 billion, down 6% from $2.46 billion in the prior year's first half. Operating segment income for the first six months of fiscal 2006 was $291 million, a decrease of 3% compared to $300 million for the same period in fiscal 2005.
