HanesBrands Enjoys Strong Third Quarter Sales Growth, Cash Flow
HanesBrands reports net sales growth of 11 percent in its third quarter financial results, and record quarterly cash flow from operations of $337 million. HanesBrands participates in the promotional products industry as supplier Hanes/Champion (UPIC: HBIINC).
“As forecasted, we delivered strong growth in the third quarter, and we are generating record cash flow,” says Hanes Chief Executive Officer Gerald W. Evans, Jr. “Our sales initiatives have re-accelerated organic growth in several core categories, including two-percent growth in the quarter for the Innerwear segment. Our acquisitions, both past and present, are performing extremely well. Our inventory level is declining, and cash flow from operations is already $300 million ahead of last year. Our business is unfolding as expected this year, and we remain confident in our ability to deliver on our full-year guidance.”
HanesBrands reports that its third quarter sales increase of 11 percent to $1.76 billion was driven by growth in its Innerwear segment and acquisition-related international growth. It did note challenges in its Activewear and Direct to Consumer segments that offset some of the increases in other areas. It attributes Activewear’s two-percent decrease to the bankruptcies of certain sporting goods retailers, while the Direct to Consumer segment’s 11-percent decrease in sales was affected by its exit from its legacy catalog business and noncore offerings.
The $337 million in net cash generated from operations follows last quarter’s record for second quarter cash flow. The company’s inventory decreased $124 million from the end of the second quarter, excluding inventory related to acquisitions of $51 million and $173 million in the second and third quarters, respectively.
For HanesBrands’ full third quarter financial results, click here.