Hanesbrands 1st Quarter Exceeds Forecast

Despite improvement in sales for the quarter, Hanes' hosiery business declined $5 million

Despite improvement in sales for the quarter, Hanes' hosiery business declined $5 million

Winston-Salem, NC– Hanesbrands (HBI.N) posted quarterly results this week that beat market estimates. The leading hosiery and intimate apparel company was helped by strong demand in its international businesses, and forecast sales growth of 6% to 8% for 2010.

Net sales increased by $70 million to $927.8 million with every business segment except hosiery reporting sales growth. Net sales in the year-ago quarter were $857.8 million.

The company’s significant retail shelf-space gains contributed approximately 6% of sales growth, while approximately 2% of growth was driven by increased retail sell through, retailer inventory restocking, and foreign currency exchange rates.

Increases, however, came mostly from the company’s innerwear and outerwear business. Hanes Hosiery, which boasts the largest and most recognizable hosiery brands, declined in the same quarter. Of the $70 million in sales growth in the first quarter, the innerwear segment contributed $33 million, outerwear contributed $24 million, direct to consumer accounted for $3 million and international contributed $15 million, with those gains slightly offset by the $5 million combined decline in the hosiery and other segments.

“We are off to a strong start to 2010 as a result of our investment in our brands and in our supply chain during the recession,” Chief Executive Richard Noll said in a statement.

Hanesbrands, which was spun off from Sara Lee Corp. in 2006, has approximately 50,000 employees.

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