Hanesbrands Inc., which began operating separately from Sara Lee on Sep. 5, filed with the SEC its annual report on Form 10-K for the fiscal year ended July 1, 2006.
Net sales of $4.47 billion for the 2006 fiscal year were down 4% from $4.68 billion last year. Management attributed the decrease to discontinuing low-margin product lines and lower sales of sheer hosiery.
Income from operations increased 20.6% to $433.6 million from $359.5 million a year ago, with management pointing to higher restructuring costs a year ago and lower cotton costs, reduced inventory costs, and improved selling, general, and administrative expenses as reasons behind the improvement.
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.
