Hanesbrands Quarterly Net Triples, Raises Annual Forecast

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Winston-Salem, NC–Hanesbrands raised its full-year sales and earnings guidance on Tuesday after second quarter net profits nearly tripled to $85.4 million from $30.6 million a year ago.

Sales increased 9.1% to $1.08 billion, boosted by double-digit revenue rises from the company’s three main business segments: innerwear, outerwear and international. Outerwear and international segments combined for $103 million in sales growth, partially offset by a combined $14 million decrease in the company’s hosiery and other segments.

Innerwear, Outerwear Increase, Hosiery Declines

Hanesbrands said new sales programs had resulted in significant shelf-space gains, with the result also helped by increased retail sell-through, retailer restocking and foreign currency exchange rates.

“We continued our strong start in 2010,” said Hanesbrands chairman and CEO Richard Noll. “Our brands are performing well with consumers, helping drive share gains in core categories and delivering strong productivity for the new sales programs we secured for this year.”

The company also reported it is working to offset price increases mainly due to increased cotton, energy and labor costs. While some categories may have price increases take effect in the third and fourth quarters, the majority of the pricing impact will begin in 2011.

The company now expects full-year sales growth of 8 to 10%, up from its previous estimate of 6 to 8%, and earnings per diluted share of $2.25 to 2.35, up from $2.15 to 2.27.