Winston-Salem-based apparel manufacturer Hanes Brands Inc. reported net sales from continuing operations of $1.58 billion for the first quarter of 2022, up five percent year-on-year.
Currency-neutral sales for the Champion brand increased 6 percent overall, while the brand’s international business grew 10 percent and the US grew 2 percent. Thus, the strong consumer demand for the Champion brand continued in the first quarter, however “the problems with the product supply of the US market did not improve in the quarter as expected”, according to the press release.
The company was unable to fulfill around 40 million US dollars in orders in the USA, the company continued. Had the goods arrived on time, Champion’s US sales growth would have been in the high teens, and Champion’s global sales would have increased 14 percent at constant exchange rates in the first quarter. US innerwear brand sales increased 1.5 percent year over year.
CEO Steve Bratspies: “We saw continued strong demand for our brands this quarter, with global growth for Champion and innerwear accelerating over the two-year period. At the same time, the global business environment has deteriorated significantly over the past three months, with accelerating inflation, ongoing COVID-19 disruptions and logistical challenges. In this environment, we are very focused on execution in the areas we control. We are fully committed to investing in our people, brands and technology and I am confident that we will deliver on our plan.”