As expected, the US textile group Hanesbrands Inc. closed the first quarter of the 2023 financial year with weak results. On Wednesday, the parent company of the sportswear brand Champion reported a significant drop in sales. The company also slipped into the red.
In the three months ended April 1st, group sales were $1.39 billion. It fell by 11.8 percent compared to the same quarter of the previous year. Adjusted for changes in exchange rates, revenue fell by 9.9 percent. The Champion label in particular suffered from weak demand, with sales falling by around 17 percent (currency-adjusted -15 percent).
In addition to the decline in sales, a lower gross margin and higher sales overhead burdened the result. The operating profit shrank compared to the same period last year by 66.4 percent to 57.3 million US dollars. The bottom line was even in the red: The net loss was 34.4 million US dollars (31.2 million euros), after a surplus of 118.7 million US dollars had been achieved in the first quarter of last year.
Overall, business development was in line with management’s expectations. The forecasts for the year remained unchanged. The group continues to expect sales in the range of US$ 6.05 to 6.20 billion and an operating profit of between US$ 446 and 496 million for 2023.