Hanesbrands Inc. reported its third consecutive quarter of solid growth for the three-month period ended Oct. 2, reporting total revenues up 10.8% to $1.2 billion from $1.1 billion in the year-ago period on sales growth from the company’s four largest segments.
In a conference call with analysts, company Chairman and CEO Rich Noll said although there has been a clear “pull-back” from the consumer in non-peak periods, key selling periods like BTS have compensated for slow sales during in-between stretches. “Consumers are still appointment shopping,” Noll said, “ we expect more of the same next year.”
Among strong performing segments were the Innerwear business, which grew 9.6% on strong sales of male underwear and apparel, and the Outerwear segment, which jumped 18.6% on solid sales from Champion, Just My Size and Hanes brands.
Innerwear segment operating profit increased by 2.1% despite higher input costs, including cotton, and higher distribution costs. The Outerwear segment benefitted from double-digit gains within the Retail Activewear, Retail Casualwear and Wholesale Casualwear segments. Operating profit fell 11.4% as a result of higher input and distribution costs.
International segment sales grew 13.4% on strong double-digit growth from Argentina, Brazil, India and Mexico. Operating profit surged 30.5% for the quarter. Among other segments, revenues for Hosiery fell 8.6% and operating loss widened to 11.3% from 8.7% a year ago. Direct sales inched up 0.1% and operating loss narrowed to 24.5% from 36.3% a year ago.
Among other noteworthy items, Noll said the company expects to raise prices no later than Feb. 1 to offset the increasing costs of cotton and other items. Noll expects price hikes to build revenue by about $150 million.
Finally, the company said it expects its newly-acquired Gear For Sports brand to contribute sales of approximately $30 million for the fourth quarter and add incremental revenue of about $200 million during fiscal 2011.