US' HanesBrands' net sales reach $1.47 bn in Q4 FY22

Gross profit was $502 million in Q4 FY22, a decline of 25 per cent, as compared to prior year. Gross margin was 34.1 per cent, down from 38.1 per cent in the prior year. Adjusted gross profit, which excludes certain costs related to the company’s full potential plan, was $505 million. Adjusted gross margin was 34.3 per cent, a decline of approximately 415 basis points compared to prior year and was in-line with the company’s expectations, HanesBrands said in a press release.

Selling, general, and administrative expenses in Q4 FY22 declined 14 per cent to $442 million as compared to last year.

Operating profit and operating margin in the fourth quarter of 2022 were $60 million and 4.1 per cent, respectively, which compared to $156 million and 8.9 per cent, respectively, in the prior year.

Loss from continuing operations totalled $418 million, or $1.19 loss per diluted share, in Q4 FY22. This compares to income from continuing operations of $68 million, or $0.19 per diluted share, in Q4 FY21.

In Q4 FY22, the company’s innerwear business segment’s sales decreased 19 per cent compared to last year. Activewear sales declined 16 per cent compared to last year as continued growth in the collegiate channel for both Champion and Hanes brands was more than offset by declines in other channels due to lower point-of-sale trends and higher activewear inventory levels at retail.

International sales decreased 12 per cent on a reported basis, including the $55 million from unfavourable foreign exchange rates. International sales decreased 2 per cent on a constant currency basis compared to prior year as growth in Asia was offset by declines in Australia, the Americas, Europe, and Canada.

In FY22, net sales from continuing operations decreased 8 per cent to $6.23 billion, compared to last year. Gross profit was $2.22 billion, decline of 16.2 per cent as compared to prior year. Selling, general, and administrative expenses declined 8 per cent to $1.7 billion as compared to FY21.

Furthermore, operating profit and operating margin in FY22 were $520 million and 8.3 per cent, respectively, which compared to $798 million and 11.7 per cent, respectively, in the prior year.

For fiscal 2023, which ends on December 30, 2023, the company currently expects net sales from continuing operations of approximately $6.05 billion to $6.20 billion and GAAP operating profit from continuing operations to range from approximately $446 million to $496 million.

For Q1 FY23, which ends on April 1, 2023, HanesBrands currently expects net sales from continuing operations of approximately $1.35 billion to $1.40 billion and GAAP operating profit from continuing operations to range from approximately $39 million to $59 million.

Fibre2Fashion News Desk (DP)