HanesBrands Inc. announced on Wednesday first-quarter revenue fell 12% to $1.39 billion, hampered by a drop in Champion Sales fell by double digits both in the United States and internationally.
The Winston-Salem, North Carolina-based company said sales of the Champion brand globally fell 17% on a reported basis year-over-year, with a 22% drop in the United States and a decline in sales. 12% internationally.
Likewise, sales of wearables fell 4% year-over-year, and activewear sales fell 19% year-over-year as consumer spending slowed.
By region, international sales fell 9% on a reported basis, including $31 million due to adverse exchange rates. HanesBrands said international sales fell 3% on a constant currency basis year over year as growth in Europe, the Americas and Japan was offset by declines in Australia and China.
“We delivered first-quarter results that were in line with our outlook, generated positive cash flow and reiterated our full-year outlook,” said Steve Bratspies, CEO. “I want to thank all of our associates for their unwavering dedication and hard work as they once again deliver short-term results while executing our transformation strategy. We continue to make progress on some of our Full Potential initiatives. We’ve expanded our lingerie innovation globally, successfully completed a major technological milestone, made progress through industry-leading sustainability initiatives, and continued to market. Continued cost savings throughout the organization. We believe in the progress we are making towards becoming a data-driven, consumer-centric company that consistently generates higher revenue and profit growth over time.”
For fiscal year 2023, the company continues to expect net operating income of between $6.05 billion and $6.20 billion, including a projected $40 million from changes in foreign exchange rates.
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