In Q1 FY23, global Champion brand sales, one of HanesBrands' key apparel lines, decreased 17 per cent on a reported basis compared to the prior year. In the US, Champion brand sales declined 22 per cent YoY, while international sales decreased by 12 per cent YoY. On a constant currency basis, global sales of the Champion brand dropped by 15 per cent YoY, with a 7 per cent decline internationally. However, constant currency sales increased in Europe, Japan, the Americas, and Australia, HanesBrands said in a news release.

Gross profit in Q1 FY23 fell 23 per cent to $450 million, with a gross margin of 32.4 per cent, which is a 470-basis point decline compared to the prior year. Adjusted gross profit was $454 million, while adjusted gross margin stood at 32.7 per cent, a decline of around 440 basis points compared to the previous year.

Selling, general, and administrative expenses decreased 5 per cent to $392 million in Q1 FY23 compared to last year. Operating profit was $57 million, with an operating margin of 4.1 per cent, compared to $171 million and 10.8 per cent in Q1 FY22. Adjusted operating profit of $63 million declined from $175 million in the first quarter of FY22, and adjusted operating margin decreased approximately 660 basis points to 4.6 per cent.

The company reported a loss from continuing operations of $34 million or $0.10 per diluted share in Q1 FY23, compared to an income of $114 million or $0.32 per diluted share last year. Adjusted loss from continuing operations was $21 million or $0.06 per diluted share, compared to adjusted income of $118 million or $0.34 per diluted share in Q1 FY22.

The company’s innerwear sales declined 4 per cent in Q1 FY23 compared to last year, but were ahead of the company's outlook, with an operating margin increase of approximately 480 basis points to 13.1 per cent. Activewear sales dropped 19 per cent compared to last year, driven by the slowdown in consumer spending, resulting in an operating margin decrease of around 950 basis points to 3.2 per cent. International sales decreased 9 per cent on a reported basis, with an operating margin of 11.1 per cent, a decrease of approximately 645 basis points compared to the prior year, the release added.

“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.”

Fibre2Fashion News Desk (DP)