Hanesbrands Inc. said Monday that it will lay off 250 management-level employees in an effort to control costs after posting a first-quarter loss.
In the three months ended April 4, the Winston-Salem, N.C.-based apparel firm recorded a loss of $19.3 million, or 20 cents a diluted share, against profits of $36 million, or 38 cents, in the same year-ago quarter.
Excluding one-time items in both periods, such as restructuring costs, the apparel manufacturer posted earnings per share of 3 cents in the quarter versus 42 cents a year ago. On average, analysts polled by Yahoo Finance, who do not normally account for such items, expected a loss of 5 cents a share.
Sales in the quarter fell 13.2 percent to $857.8 million from $987.8 million. Innerwear sales fell 6 percent to $513.8 million, while outerwear sales dropped 21 percent to $214.9 million. The hosiery category declined 21 percent to $52.8 million, and international sales dropped 20 percent to $83.2 million.
A Hanesbrands spokesman said about 200 of the cuts will come at the company’s Winston-Salem headquarters, with another 30 across the U.S. and the remainder abroad. He said 9,300 people are employed domestically, with 33,700 abroad.
The manufacturer expects to record about $15 million in restructuring charges related to the layoffs, mostly in the second quarter. It had previously eliminated 210 management and corporate positions in the fourth quarter.
“Our overall results were in line with our expectations and were significantly impacted by the economic recession,” said chairman and chief executive officer Richard Noll.
Noll sounded tentative moving into the rest of fiscal 2009.
“Retailers, while still experiencing soft retail sell-through, are beginning to loosen inventory restraints,” Noll said on a conference call with investors. “This may be a false bottom, a situation for which we are on guard, or it may be a turning point.”
Hanesbrands stock shed 41 cents, or 2.9 percent, to close the session before the earnings announcement at $13.75.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)