Berkshire Hathaway’s Apparel Segment Sees Modest Gain In 2017

Berkshire Hathaway Inc. reported sales from apparel and footwear businesses–including Fruit of the Loom, Garan, H.H. Brown Shoe Group and Brooks Sports, increased 1.2 percent in 2017 compared to 2016, to $4.2 billion.

Pre-tax earnings from apparel and footwear businesses increased 5 percent in 2017, primarily due to increased earnings from the footwear businesses, according to Berkshire Hathaway’s recently-released 10K filing.

Berkshire Hathaway’s footwear business includes Brooks Sports and H.H. Brown Shoe Group, which includes Justin, Tony Lama, Nocona, Chippewa, BØRN, B•Ø•C, Carolina, Söfft, Double-H Boots, Nursemates and Comfortiva. Apparel businesses largely consists of Fruit of the Loom, which includes Fruit of the Loom, Jerzees, Vanity Fair, Russell Athletic and Spalding. Berkshire Hathaway also owns Garan, the children’s apparel brand.

In 2016, apparel and footwear revenues in 2016 declined $81 million (1.9 percent) compared to 2015, reflecting lower footwear sales and the impact of a divestiture by Fruit of the Loom in 2015. Earnings of its apparel businesses increased 22 percent in 2016, primarily attributable to lower restructuring costs and a loss in 2015 from the disposition of a Fruit of the Loom operation, partly offset by lower earnings from its footwear businesses. In 2015, Fruit of the Loom exited an unprofitable intimate apparel business in Europe.

Overall sales in its Consumer Products segment rose 10.0 percent in 2017 to $12.1 billion. Besides the footwear and apparel business, the Consumer Products segments includes Forest River (leisure vehicles), Duracell (batteries), Larson Juhl (custom framing products) and Richline (jewelry).

The 10K doesn’t offer any specific detail on the apparel and footwear brands except for some data employee counts and most declined year-over-year. Brooks showed an employee count of 638 in the latest 10K against 647 at the same time a year ago, Russell 1,020 versus 1,551, H. H. Brown Shoe Group 950 against 970, Justin Brands 735 versus 839 and Fruit of the Loom 26,219 compared with 26,418.