Hanesbrands Inc. on Wednesday posted a loss in the fourth quarter and lower full-year profits, but reaffirmed it expects sales growth of 5 percent in 2010.
For the three months ended Jan. 2, the loss was $1.1 million, or 1 cent a diluted share, against income of $17.9 million, or 19 cents, in the year-ago quarter.
Sales fell 4.5 percent to $988.7 million from $1.04 billion, with hosiery slipping 7.9 percent to $54.4 million, direct-to-consumer falling 2.7 percent to $94.7 million and outerwear volume dipping 1.2 percent to $279.1 million. Innerwear sales inched down 1.1 percent to $439.7 million, while international sales were flat at $120.3 million. Gross margin picked up to 33.4 percent of sales from 31.6 percent in the year-ago quarter.
For the year, profits fell 59.7 percent to $51.3 million, or 54 cents a diluted share, from $127.2 million, or $1.34. Total sales fell 8.4 percent to $3.89 billion from $4.25 billion. As in the quarter, hosiery sustained the biggest decline in volume, down 14.6 percent to $185.7 million from $217.4 million.
Richard A. Noll, chairman and chief executive officer, in an after-market conference call with Wall Street analysts, reiterated expectations of a 5 percent increase in sales in the new year and noted the firm’s goals of a 50 to 100 basic point improvement in operating margin and a decline in interest expenses of $20 million to $25 million.
“When you add all of this together,” he said, “we can see earnings per share growth of at least 25 percent and up to 35 percent or more in 2010.”
The company has three contract sewing operations in Haiti, two of which were affected by the Jan. 15 earthquake. Production has resumed in the company’s contract T-shirt sewing operations and, through the addition of new contractors and higher production at company-owned plants, T-shirt production should return to pre-earthquake levels as soon as mid-February.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast