HanesBrands Inc. is still riding the Champion wave

The Winston-Salem, N.C.-based retailer said its net sales for the three months ending June 29 were $1.8 billion, a 2.7 percent increase from the same time a year ago. Its net income also rose to $154 million, or 42 cents a share, a 9.5 percent increase from the same period last year. 

The increase in sales came despite a “$34 million headwind from foreign exchange,” chief financial officer Barry Hytinen said on a conference call with analysts. He noted that “higher Champion margins offset higher input costs and the significant negative impact from foreign exchange.” 

Champion continued to buoy the company’s numbers, helping to boost the activewear revenue and international sales by more than 10 percent. Global Champion sales outside the mass channel increased 53 percent in the quarter, setting aside foreign currency fluctuations. 

“We had another strong quarter, our geographic diversification is creating value, our product innovation is working, and Champion’s growth continues to outperform,” said chief executive officer Gerald Evans Jr. “Given our first-half momentum and our second-half visibility, we believe we are well-positioned to achieve the midpoint of our guidance or higher in the full-year.”  

The company expects net sales of approximately $6.9 billion to $7 billion in 2019. In terms of its international sales, it’s counting on increasing Champion sales in Europe and Asia, as well as innerwear sales in Asia, Australia and the Americas. It is also adding Champion branded stores in China with the help of a partner. 

HanesBrands also owns Hanes, Playtex, Wonderbra, Bali, Just My Size and L’eggs. This summer, the company began selling Hanes socks and L’eggs hosiery through Dollar General.

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