HanesBrands, Winston-Salem, N.C., recently announced its inline third-quarter 2019 results, significant net debt reduction, and increased the midpoint guidance for full-year 2019 net sales and diluted earnings per share.
Quarter results also included growth for net sales, operating profit and EPS.
Ending Sept. 28, net sales increased 1% to $1.87 billion as reported and increased 2% in constant currency. International sales growth reached 7%, while constant currency in both activewear and innerwear reached 11%. Global sales of Champion activewear and innerwear increased 25% as reported and increased 26% in constant currency, both excluding the United States. mass channel.
Third-quarter GAAP operating profit increased 5% to $270 million, while adjusted operating profit increased 1% to $280 million. GAAP diluted earnings per share of $0.51 increased 9%, and adjusted EPS of $0.54 increased to 4%.
“We are proud to have met or exceeded our financial guidance for each of the first three quarters of the year, and we have now raised the midpoint of 2019 guidance for net sales and EPS,” says Hanes CEO Gerald W. Evans Jr. “We have a strong diversified business model across geographies and product segments. Our international businesses are outperforming, global Champion growth continues, we are thriving in the consumer-direct channels, and we are charting a path back to growth for our U.S. Innerwear businesses through innovation and brand investment. We are driving significant operating cash-flow growth, which was up approximately $100 million in the quarter, and we have reduced our net debt by nearly a half-billion dollars since a year ago at this time. Our long-term outlook is strong.” — D.S.
