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Hanesbrands Inc. (HBI) is a global leader in branded everyday apparel, operating across the Americas, Australasia, Europe, and Asia. The company designs, manufactures, sources, and sells a wide range of innerwear and activewear apparel under some of the world’s strongest apparel brands, including Hanes, Champion, Bonds, Maidenform, Bali, Playtex, and others. HBI's products are marketed through various channels, including mass merchants, department stores, specialty stores, company-owned retail stores, and e-commerce platforms.
- Innerwear - Offers basics such as men's underwear, women's panties, children's underwear, socks, and intimate apparel like bras and shapewear.
- Brands: Hanes, Bali, Maidenform, Playtex, Champion, Bras N Things, Polo Ralph Lauren (licensed).
- International - Sells innerwear, activewear, and home goods outside the U.S..
- Brands: Champion, Bonds, Sheridan, Bras N Things, Hanes, Wonderbra, Playtex, Berlei, Zorba, Sol y Oro, Rinbros, Polo Ralph Lauren (licensed).
- Activewear - Provides T-shirts, fleece, sport shirts, performance T-shirts, shorts, sports bras, thermals, and teamwear.
- Brands: Champion, Hanes, Gear for Sports, Comfortwash, Alternative, JMS/Just My Size, Hanes Beefy-T.
- Given the all-time high gross margin of 41.8% this quarter , how confident are you that these margin levels are sustainable long-term, especially as you balance increased brand investments of over 5% of sales with the need to drive top-line growth in a challenging consumer environment?
- While you've paid down an additional $870 million of debt in October and aim for a leverage ratio of 3x net debt to adjusted EBITDA by the end of next year , what risks could impede achieving this target, and how will you balance debt reduction with necessary investments in the business?
- Your guidance indicates a return to sales growth in the fourth quarter , but with point-of-sale data only starting to improve slightly , what gives you confidence in achieving this growth amid the ongoing challenging consumer environment?
- With the divestiture of Champion and associated supply chain changes, are there potential dis-synergies or stranded costs that could hinder reaching your operating margin target of over 15% , and how are you addressing these challenges?
- You've reduced SKUs by 50% as part of assortment management to improve margins , but could this significant reduction limit consumer choice and negatively impact future sales growth?