HanesBrands has announced third quarter 2017 net sales and earnings growth in line with the Winston-Salem, North Carolina, company’s guidance, and strong year-to-date net cash from operations. For the quarter ending September 30, it reported net sales of $1.8 billion, an increase of two percent, driven by double-digit international segment growth. Domestic sales were affected by apparel’s weaker than expected back-to-school retail environment, although the company held share for innerwear basics.

“We returned to organic growth in the quarter, as international results were stronger than expected, and we are tracking to the midpoint or higher of our cash flow guidance for the year,” says Hanes Chief Executive Officer Gerald W. Evans, Jr. “The value of diversifying our portfolio with international and activewear acquisitions is evident, and we are making progress on several initiatives to adapt to the evolving and challenging retail environment in the United States.”

With one quarter remaining in the fiscal year, Hanes has updated its full-year guidance to reflect year-to-date results and factors related to the fourth quarter, including additional incremental marketing investment to drive growth, the expected adverse effect of the Sears Canada bankruptcy, and the recently announced acquisition of Alternative Apparel.

“In the fourth quarter, we expect to once again achieve organic sales growth,” Evans adds. “We are continuing to drive strong double-digit online sales growth across businesses and geographies. We are making progress on our goal to use our brands, innovations, acquisitions and online investment to create shareholder value and drive sustainable growth.”

Hanes generated organic sales growth for the first time in eight quarters in third quarter 2017. The company benefitted from increasing geographic diversification as international sales growth more than offset sluggish domestic sales. International sales, bolstered by Hanes Europe Innerwear, Champion Europe, and Hanes Australasia, accounted for 31 percent of sales in the third quarter. Global Champion sales increased 16 percent in the quarter. The company also generated $297 million in cash from operations in the third quarter and has generated $331 million year-to-date, up 59 percent from a year ago. Cash flow is benefitting from working capital improvements and increased profitability.