Champion Latest Report: Sales Increased 40% Last Year, And Achieved Strong Two Digit Growth In 10 Consecutive Quarters.

In February 7th, HanesBrands, the parent of Champion brand, the American underwear and sportswear manufacturer, announced the key financial data for the fourth quarter of fiscal 2019 and the whole year.

Thanks to more abundant product supply and expanding distribution channels, Champion brand sales increased by 40% in the 2019 fiscal year (excluding the traditional US mass market channels), and the international business and domestic business in the fourth quarter achieved an increase of 22% over the same period, achieving two digit strong growth for 10 consecutive quarters.

However, due to the drag of other brands, the HanesBrands group's net sales in the fourth quarter still dropped by 1% to 1 billion 750 million US dollars compared with the same period last year, while the fixed exchange rate increased slightly. The earnings per share of HanesBrands in the fourth quarter increased by 24% to 0.51 US dollars. 11% to 1.64 dollars.

HanesBrands's chief executive, Gerald W. Evans Jr., said, "HanesBrands performed well in the fourth quarter, in line with previous expectations. For the 2020 fiscal year, we expect our underwear business to be stable and profitable, and Champion brand, group international business and direct selling business will grow steadily. "

On the day of the news, HanesBrands's share price fell 1.53% to 14.2 dollars on February 7th.

In the fourth quarter, thanks to the growth of all international markets in the Americas, Asia, Europe and Australia, HanesBrands's international sales (excluding the US) grew by 7% over the same period last year, up 10% from the fixed exchange rate, but its operating profit dropped 2% compared to the same period last year. The sales volume of international sales of sportswear and underwear exceeded expectations, but the overall sales performance of the two departments declined.

In the fourth quarter, the net sales of HanesBrands underwear business in the United States decreased by 4% compared with the same period last year. However, under the influence of higher pricing and lower operating costs, operating profit increased by 5% compared with the same period last year, and the operating profit margin increased by 2.1 percentage points to 24.6%. In particular, DreamWire's innovative comfort bra is welcomed by the market.

In recent days, HanesBrands has also applied the innovative technology of comfortable DreamWire bra to its American underwear brand Bali, launched the Bali brand One Smooth U DreamWire series bra, and provided the size suitable for all kinds of stature, up to 42DD, with white, black, nude and lavender, and blackberry color and blue color.

The One Smooth U DreamWire series bra is made of smooth fabric and adjustable elastic straps and lace ornament. At present, the innovative technology of DreamWire bra has been applied to the three brands of Hanes, Maidenform and Bali.

As of December 28, 2019, the key financial data for the fourth quarter of HanesBrands 2019 fiscal year are as follows:

Net sales fell 1% to 1 billion 750 million U.S. dollars over the same period last year.

Gross profit increased 0.4% to $710 million compared to the same period last year.

Operating profit fell 0.3% to $240 million.

Diluted earnings per share were $0.51.

By Sector:

Underwear: net sales fell 4.1% to $570 million compared to the same period last year, and operating profit increased 4.7% to 140 million dollars over the same period.

Sportswear: net sales fell 6.7% to $450 million year-on-year, and operating profit fell 8.2% to 71 million 630 thousand dollars.

International Business: net sales increased 6.9% to $650 million compared with the same period last year, and operating profit dropped 1.8% to 96 million 770 thousand US dollars.

Others: net sales fell 2.7% to $77 million 600 thousand compared with the same period last year, and operating profit increased 17.3% to 8 million 400 thousand US dollars over the same period.

As of December 28, 2019, sales figures for HanesBrands 2019 fiscal year are as follows:

Net sales increased 2.4% to $6 billion 970 million.

Gross profit increased 2.5% to $2 billion 720 million compared to the same period last year.

Operating profit grew 2.9% to $890 million over the same period.

Diluted earnings per share were $1.64.

By Sector:

Underwear: net sales fell 3.2% to $2 billion 300 million compared to the same period last year, and operating profit dropped 2.1% to 520 million US dollars.

Sportswear: net sales increased 3.5% to $1 billion 850 million compared to the same period last year, and operating profit increased 5.2% to 280 million dollars over the same period.

International Business: net sales increased 7.9% to $2 billion 530 million compared with the same period last year, and operating profit increased 9.4% to 380 million US dollars over the same period.

Others: net sales fell 2.7% to $280 million compared with the same period last year, and operating profit dropped 2% to 24 million 830 thousand US dollars.

HanesBrands2020 financial year forecast

Net sales amounted to 66.75-67.75 billion.

Operating profit is 8.5-8.8 billion.

The adjusted operating profit is 9-9.3 billion dollars.

Earnings per share were 1.6-1.68 dollars.

HanesBrands2020 financial year first quarter forecast

Net sales 14.66-14.96 billion

Operating profit is 1.18-1.28 billion.

The adjusted operating profit is 1.45-1.55 billion dollars.

Earnings per share were 0.17-0.20 dollars.