ADDRESSING a gathering of financial analysts in New York at the end of last month HanesBrands Chairman and CEO Richard Noll said that the company continued to assess acquisition opportunities with a view to maximizing the exploitation of its highly efficient vertical supply chain to create value. Speaking of Hanes’ production capabilities, Noll emphasized “it’s our vertically integrated company-owned supply chain that is truly the foundation of our business model. It is what enables Innovate-to-Elevate. It enhances margin through ongoing offering efficiencies and it represents the leverage point for creating value with acquisitions. By driving more and more volume through our supply chain with acquisitions, we can generate substantial cost synergies, and therefore, create significant opportunity for margin improvement. We saw this with Gear for Sports and we’re seeing it with Maidenform, and we expect to see it with DBA and all of our future acquisitions.”
Richard Noll’s comments about the company’s supply chain confirms the previous comments we made on the subject in these pages. They also confirm that HanesBrands is likely to continue growing larger and more profitable, thus providing ever keener competition for its rivals in world markets.