Jonathan Ram, 50, will join Hanes to lead the company’s global activewear businesses, including Champion, as group president, global activewear, effective May 21.
Ram joins Hanes from New Balance Athletics, Inc., where he served as executive vice president North America and previously served as a managing director overseeing New Balance’s Europe, Middle East, Africa and Mexico businesses.
Ram has more than 25 years of wholesale and retail experience in the athleticwear, sports footwear and sports licensing industries. He will report to Hanes CEO Gerald Evans.
“We are delighted to attract a top talent such as Jon with extensive experience and success in business development, marketing, merchandising and product management in the athleticwear and footwear industry,” Hanes CEO Gerald Evans said. “Our activewear businesses have significant momentum in the Americas, Europe and Asia and we are eager for Jon to join our team to help us achieve the enormous additional potential of these businesses as we continue to increase our scale, geography and channels of distribution. He will be an excellent addition to our successful activewear team.”
Ram joined New Balance in 2002. Prior to that, he held positions with Roots Ltd., National Basketball Association Entertainment Inc., Richmont Apparel Corporation, National Hockey League Players’ Association and Major League Baseball Properties, Inc.
Ram succeeds John T. Marsh, who has decided to take a professional three-year sabbatical to serve a prestigious overseas volunteer mission for his church.
“We will miss John and his strong leadership skills,” Evans said. “John had a very successful career at Hanes and was instrumental in building our global activewear growth platform. We all wish him and his family the best on his mission.”
HanesBrands made the hiring announcement while noting that it will hold its Investor Day Meeting on Tuesday. The meeting will highlight its diversified global business model that has the company poised to generate consistent growth and as much free cash flow in the next five years as the previous 11 years combined.
In the four years since the company’s last investor day, the company said it has transformed itself from a U.S.-centric business supported by a global supply chain into a worldwide basic apparel leader with commercial operations in the Americas, Europe, Asia and Australia that more fully leverage its global supply chain.
At the investor day meeting at company headquarters beginning at 8:15 a.m., company executives will outline five-year base-case scenarios expected to:
- generate consistent organic sales growth,
- expand margins and increase earnings per share,
- generate cumulative operating cash flow of approximately $4.3 billion and cumulative free cash flow approaching $4 billion and
- create shareholder value through a balanced capital allocation strategy of dividends, share repurchases and acquisitions.
“We have expanded our brand portfolio, diversified our business internationally and across channels and increased the leverage of our powerful global supply chain to deliver more consistent organic growth and higher cash-flow generation,” said Hanes Chief Executive Officer Gerald W. Evans Jr. “We have a lot of momentum and are re-energizing our Sell More Spend Less Generate Cash strategy to unleash our full potential for shareholder value.”
Immediate priorities for the company include continuing to drive double-digit global revenue growth for Champion and the online/consumer-direct channel; returning the U.S. Innerwear business to growth; capturing the remaining synergies and ending integration charges for prior acquisitions and reducing the company’s net debt-to-EBITDA ratio.
“Over the next few years, we expect to see meaningful EPS growth from our disciplined capital allocation strategy and modest operating margin expansion,” said Hanes Chief Financial Officer Barry A. Hytinen. “We are well-positioned with strong brands, a proven business model, a commitment to deleverage, strong cash generation and a balanced capital allocation strategy.”
Hanes has reaffirmed its second-quarter 2018 and full-year 2018 guidance issued May 1, 2018.
The company continues to expect full-year 2018 net sales of $6.72 billion to $6.82 billion, GAAP operating profit of $870 million to $905 million, adjusted operating profit excluding actions of $950 million to $985 million, GAAP EPS of $1.54 to $1.62, adjusted EPS excluding actions of $1.72 to $1.80 and net cash from operations of $675 million to $750 million.
Second-quarter net sales are expected to be in the range of $1.7 billion to $1.725 billion. GAAP operating profit is expected to be $215 million to $225 million and adjusted operating profit excluding actions is expected to be $240 million to $250 million. GAAP EPS is expected to be $0.38 to $0.40 and adjusted EPS excluding actions is expected to be $0.44 to $0.46.
Photo courtesy Champion