HanesBrands, a leading US-based apparel manufacturer, has reported net sales from continuing operations of $995 million for the second quarter of fiscal 2024 (Q2 FY24), representing a 4 per cent decrease compared to the prior year, with a 150-basis-point impact from currency. On an organic constant currency basis, net sales decreased approximately 1 per cent, or $11 million, compared to last year.

The company achieved a gross profit of $307 million and a gross margin of 30.8 per cent. Adjusted gross profit saw an impressive 11 per cent increase over the previous year, reaching $396 million. The adjusted gross margin rose by approximately 525 basis points to 39.8 per cent, compared to the second quarter of FY23.

Selling, general, and administrative expenses increased by 29 per cent to $370 million compared to last year. The operating loss for the second quarter of FY24 was $63 million, with an operating margin of 6.3 per cent. However, adjusted operating profit surged by 46 per cent over the prior year to $126 million, and the adjusted operating margin increased by 430 basis points to 12.7 per cent, compared to the second quarter of FY23, the company said in a press release.

The loss from continuing operations totalled approximately $137 million, or $0.39 per diluted share, in the second quarter of FY24. This is a significant increase from the loss of $9 million, or $0.03 per diluted share, reported last year. On an adjusted basis, income from continuing operations totalled $53 million, or $0.15 per diluted share, compared to $8 million, or $0.02 per diluted share, in the second quarter of FY23.

In the US market, net sales decreased by 1 per cent compared to the prior year, while the operating margin improved by approximately 470 basis points to 21.4 per cent. Internationally, net sales decreased by approximately 4 per cent on a reported basis but increased by 2 per cent on a constant currency basis compared to the previous year. The international operating margin increased by approximately 380 basis points to 12 per cent.

“We delivered solid second-quarter results in a challenging consumer and apparel market, including better-than-expected US innerwear performance and margin expansion,” said Steve Bratspies, CEO. “We’ve taken several strategic actions that have fundamentally strengthened and simplified our business, better positioning the company for consistent revenue growth, higher profit margins, and strong cash generation.”

Fibre2Fashion News Desk (DP)