The US textile group Hanesbrands Inc. also closed the third quarter of the 2023 financial year with weak results. On Thursday, the parent company of the sportswear brand Champion reported significant declines in sales and another large loss.
In the quarter ended at the end of September, consolidated sales were 1.51 billion US dollars (1.41 billion euros), 9.5 percent (currency-adjusted -9.3 percent) below the level of the same period last year. While the laundry division’s revenue remained almost constant, Champion’s revenue fell by 19 percent (-20 percent adjusted for currency effects) due to difficult conditions in the USA and other important markets. The company had already announced in September that it was examining a possible sale of the label.
In addition to the decline in sales, expenses as part of the ongoing reform programs weighed on the result. As a result, operating profit of $66.0 million was not even half as high as in the same quarter of the previous year, when it was $141.4 million (-53.4 percent). Adjusted for special effects, the operating result reached $143.0 million, 15 percent below the corresponding previous year’s figure.
The bottom line was, as in the first two quarters of the current year, in the red. The net loss amounted to 38.8 million US dollars (36.2 million euros). In the third quarter of 2022, Hanesbrands had a surplus of $80.1 million.