The US textile producer Hanesbrands Inc. suffered significant losses in sales in the 2023 financial year. However, the ongoing austerity program was beginning to have an impact on the result. This emerges from the current results presented by the parent company of the sportswear brand Champion on Thursday evening.
Accordingly, group sales in the past year amounted to almost 5.64 billion US dollars (5.24 billion euros). This was 9.6 percent (-8.6 percent adjusted for currency effects) below the previous year’s level. Despite cost cuts, operating profit shrank by 44.4 percent to $288.8 million. However, the net loss, which had been $127.2 million in the previous year, not least due to high tax burdens, fell to $17.7 million (16.5 million euros).
The company wants to return to profitability this year
In the fourth quarter, the group had to accept a decline in sales of 12.0 percent (-11.6 percent adjusted for currency effects) to 1.30 billion US dollars. Revenues from the Champion brand fell short of the previous year’s level by 23 percent (-24 percent adjusted for currency effects).
Thanks to a higher gross margin and lower operating costs, the group was able to increase its operating profit by 59.3 percent to 96.1 million US dollars. The quarterly profit was $77.9 million, after posting a corresponding loss of $418.1 million in the same period last year.
For 2024, management now expects sales from continuing operations to be between $5.35 and $5.47 billion. Operating income from these activities is expected to reach $430 million to $450 million, with a target range for diluted earnings per share of $0.22 to $0.28.