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.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
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For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)