Hanesbrands Inc. net sales were effectively flat at $1.12 billion during the second quarter. The only positive division was Innerwear, which grew sales to $691.5 million from $685.5 million on the strength of the Hanes and Bali brands. Outerwear sales dipped to $263.6 million from $270.5 million, although the company cited continued growth in Champion activewear. On a conference call with analysts, Rich Noll, Hanesbrands CEO, said both C9, which sells to Target, and Champion have been growing in the double-digits range combined for several quarters in a row. HBI gross margins fell to 33.9% from 34.1%, but SG&A expenses were reduced to 23.7% of sales from 27% due to strong cost controls. Due to the company's new independent structure, net income dropped 57% to $25.4 million, or 26 cents a share, from $59.3 million, or 62 cents, last year.
