HanesBrands Inc. reported an almost 60 percent decline in third-quarter earnings Wednesday because of onetime charges and said it plans to raise prices in the U.S. next year.
For the three months ended Sept. 27, profits for the Winston-Salem, N.C.-based apparel maker fell 59.1 percent to $15.9 million, or 17 cents a diluted share, from $38.9 million, or 40 cents a share, last year. Third-quarter sales were flat at $1.15 billion compared with a year ago.
The company attributed the profit decline mostly to $26.3 million in restructuring costs and the liquidation of Mervyns, the 149-store regional department chain. Hanesbrands previously said that it expected a $5.5 million bad debt charge related to the liquidation. Barring one-time charges, third-quarter earnings would have been 56 cents a share. That would have beaten the estimates of analysts polled by Yahoo Finance, who, on average, predicted 54 cents a share.
“We continued our strategic execution in the third quarter and delivered comparable sales and solid earnings per share in a difficult environment,” chief executive offi cer Richard Noll said. “We remain optimistic about our earnings potential for the fourth quarter due to favorability of expenses that may more than offset the challenges of higher commodity costs and an uncertain sales environment.”
The company said the rising cost of raw materials, especially cotton, will force it to raise domestic prices in mid-first quarter 2009 by an average of 4 percent.
For the first nine months of 2008, the firm’s profits increased 43.2 percent to $109.3 million, or $1.14 a share, from $76.3 million, or 79 cents a share, last year. Restructuring costs and interest expenses declined. Sales in the first three quarters fell 3.1 percent to $3.2 billion from $3.3 billion a year ago.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)