HanesBrands Q1 sales drop 12% on plummeting Champion sales
HanesBrands Inc. announced on Wednesday first-quarter sales dropped 12% to $1.39 billion, hindered by a decrease in Champion sales, which took a double-digit decline hit both in the U.S. and internationally.
The Winston-Salem, North Carolina-based company said global Champion brand sales decreased 17% on a reported basis as compared to prior year, with a 22% decline in the U.S. and a 12% decline internationally.
Likewise, innerwear sales decreased 4% compared to last year, and activewear sales declined 19% compared to last year driven by the slowdown in consumer spending.
By region, international sales decreased 9% on a reported basis, including $31 million from unfavorable foreign exchange rates. International sales decreased 3% on a constant currency basis compared to prior year as growth in Europe, the Americas and Japan was offset by declines in Australia and China, said HanesBrands.
“We delivered first-quarter results in-line with our outlook, generated positive cash flow and reiterated our full-year outlook,” said Steve Bratspies, CEO. “I want to thank all of our associates for their continued dedication and hard work as they once again delivered near-term results while implementing our transformation strategy. We continue to make progress on several of our Full Potential initiatives. We expanded our innerwear innovation globally, successfully completed a key technology milestone, progressed on our industry-leading sustainability initiatives and continued to generate cost savings across the organization. We’re confident in the progress we’re making to become a more consumer-centric, data-driven company that consistently generates higher sales and profit growth over time.”
For fiscal-year 2023, the company continues to expect net sales from continuing operations of approximately $6.05 billion to $6.20 billion, which includes a projected headwind of approximately $40 million from changes in foreign currency exchange rates.
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