Hanesbrands reported gains in both third-quarter net income and net sales, due in part to growth in the innerwear category.
This story first appeared in the October 30, 2012 issue of WWD. Subscribe Today.
For the three months ended Sept. 29, net income rose 21 percent to $109.9 million, or $1.09 a diluted share, from $90.8 million, or 91 cents, last year. Net sales rose 2.8 percent to $1.22 billion from $1.19 billion.
The company said innerwear-segment sales rose 3 percent as operating profits gained 10 percent for the category. Contributing to the growth were product innovations from Hanes ComfortBlend Men’s underwear, Hanes Classics slim-fit and stretch premium underwear T-shirts and Bali and Barely There Smart Size seamless bras.
Outerwear-segment sales rose 5 percent, but operating profits slid 4 percent due to higher cotton costs. Richard A. Noll, chairman and chief executive officer, said, “Cotton inflation is behind us, and we are generating momentum for continued growth.”