American apparel company Hanesbrands' net sales up 5% in Q1 FY22

Global Champion brand sales increased 6 per cent over prior year. By geography, Champion sales internationally increased 10 per cent and increased 2 per cent in the US.

However, product supply challenges to the US market did not improve as expected in the quarter resulting in approximately $40 million of in-hand orders in the US that were unfulfilled. Innerwear sales increased 1.5 per cent over prior year. The growth in the first-quarter 2022 was driven by retail space gains, a positive mix benefit and the partial-quarter benefit of price increases.

Activewear sales grew $23 million, or 6 per cent over prior year. International sales increased 7 per cent compared to prior year driven by growth in Europe, the Americas and China. Constant currency sales declined in Japan due to ongoing COVID-related pressures and in Australia due to product delays.

“We saw continued strong demand for our brands in the quarter, with global Champion and innerwear growth accelerating on a two-year basis. At the same time, the global operating environment has deteriorated significantly over the past three months, with accelerating inflation, continued covid-19 disruptions and logistical challenges. We are unwavering in our commitment to investing in our people, brands and technology, and remain confident that we will deliver on our full potential plan," Steve Bratspies, CEO, Hanesbrands, said in a release.

For second-quarter 2022, which ends on July 2, 2022, the company currently expects net sales from of approximately $1.68 to 1.73 billion. For fiscal 2022, the company targets net sales of approximately $7.0 to $7.15 billion.

Fibre2Fashion News Desk (HO)