The Champion brand delivered double-digit sales gains for the third year in a row while sales of Hanes brands were up mid-single-digits.
“In 2007, we expanded the depth of distribution in sporting goods with our Champion Double Dry performance products,” said Rich Noll, CEO of Champion's parent, Hanesbrands Inc., in a conference call with analysts. “C9 by Champion continues to perform well at Target and Champion recently launched its first large consumer advertising campaign in several years.”
The “How You Play” advertising campaign was launched on Nov. 7, Champion's first campaign since 2003. Hanes and Champion on Oct. 31 entered a 10-year strategic alliance with The Walt Disney Co. to become the exclusive basic apparel at Disney Properties. The alliance also included the naming rights for the stadium at Disney's Wide World of Sports Complex, now known as Champion Stadium.
Overall, Hanesbrands, Inc. Q4 sales increased 2.4% to $1.16 billion. For the full year, revenues gained 1.6% to $4.47 billion. The quarterly and annual sales increase was driven by gains in the outerwear segment. Also contributing was the international segment of the innerwear segment, which grew 13% in Q4 and 5% for FY07. The innerwear segment declined less than 1% in both Q4 and for the full year. The hosiery segment decreased by 12% in Q4 and 4% for FY07.
HBI net income more than doubled to $49.8 million, or 52 cents per share, from $23.8 million, or 25 cents, a year ago. Excluding one-time items, HBI earned 38 cents per share in the latest period. The gain was attributed to increased sales and cost-reduction efforts. The bottom line included restructuring charges of $7 million related to ongoing efforts to shift its supply chain network to fewer larger facilities in lower-cost countries.