HANESBRANDS: acquisitions begin to boost sales and profit
REPORTING on its third quarter results, HanesBrands said that the Maidenform business it had acquired last year had raised the period’s innerwear revenue by 16 per cent as it contributed sales of USD 115m while DBApparel contributed USD 81m. It also confirmed that it has begun to plan cross-company integration in respect of the DBApparel business in acquired in August. Q3 total net sales are reported to have risen by 17 per cent to USD 1.4bn and the innerwear segment had generated a 29 per cent increase in operating profit thanks to acquisition benefits and base-business profitability. The period’s results allowed the company to raise again its full year guidance on sales and EPS.
It is clear that the restructuring of the supply chain undertaken in the past few years, product innovation and significant acquisitions have all combined to strengthen considerably the company’s growth and profitability prospects for the coming years.