HanesBrands Announces 2017 Financial Results, Australian Apparel Acquisition
HanesBrands has announced its fourth-quarter and full-year 2017 results, including full-year net sales growth of seven percent and strong annual operating cash flow of $656 million, and the completion of its acquisition of Australian specialty intimate apparel seller Bras N Things. HanesBrands participates in the promotional products industry as supplier Hanes/Champion (PPAI 191138).
“2017 was a successful year during which we focused on diversifying our business to be able to consistently deliver annual topline growth,” says Hanes CEO Gerald W. Evans, Jr. “We rebounded to achieve organic growth in the third and fourth quarters, including fourth-quarter organic growth for each of the innerwear, activewear and international segments. We have additional work to do, including addressing inflationary and short-term cost pressures, but our brands are strong, our key market shares are increasing, our international businesses are sizable and growing, and we are driving significant direct-to-consumer growth worldwide.
“Cash flow from operations continues to be the engine of our business model, and tax reform will not have a meaningful effect on our cash generation,” adds Evans. “We believe we have significant opportunities to put our strong cash generation to work supporting the company’s growth initiatives, acquisitions and capital strategy. We expect another strong year of operating cash flow in 2018.”
For the year and quarter that ended December 30, 2017, full-year net sales increased seven percent to $6.47 billion, and fourth-quarter net sales increased four percent to $1.645 billion. Organic sales, which exclude acquisitions less than a year old, increased two percent in the fourth quarter, the second consecutive quarter of organic growth. Hanes generated $656 million in net cash from operations for the full year, up from $606 million a year ago.
The activewear segment’s sales increased nine percent in fourth quarter and three percent for the full year. Core Champion performance, including strong sales of the Champion Life line of products and reverse-weave fleece, and higher sports apparel sales drove quarter growth. The segment’s operating profit increased two percent in the fourth quarter and one percent for the full year. The innerwear segment’s sales increased one percent in the fourth quarter, driven by strong men’s and children’s underwear growth. For the full year, segment sales decreased three percent. Its operating profit decreased six percent in the fourth quarter and for the full year.