Hanesbrands Inc. filed its annual report on Form 10-K for the fiscal year ended July 1, 2006, with the Securities and Exchange Commission.
The report includes audited combined and consolidated financial statements for the past three fiscal years when Hanesbrands operated as Sara Lee Corporation's branded apparel business in the Americas and Asia. Hanesbrands previously filed with the SEC its historical and unaudited pro forma combined and consolidated financial statements for the 39 weeks ended April 1, 2006. Those results are contained in the company's Registration Statement on Form 10, which was declared effective by the SEC on Aug. 11, 2006.
Hanesbrands Inc. began operating as a separate independent publicly traded company on Sept. 5, 2006, and regular trading in its common stock on the New York Stock Exchange began Sept. 6, 2006.
Highlights of the fiscal 2006 results include:
Net sales of $4.47 billion were down from $4.68 billion in fiscal year 2005. The decrease was primarily a result of discontinuing low-margin product lines and lower sales of sheer hosiery.
Income from operations increased by 20.6% to $433.6 million from $359.5 million a year ago. The increase was primarily due to higher restructuring costs a year ago and lower cotton costs, reduced inventory costs and improved selling, general and administrative expenses as a result of a lower cost structure in 2006.
Net income increased to $322.5 million from $218.5 million last year. Fiscal 2006 benefited from increased income from operations and a lower income tax rate.