Hanesbrands reported gains in both third-quarter net income and net sales, due in part to growth in the innerwear category.
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.”