Hanesbrands Q3 net sales down 2 percent

REPORT_ For the third quarter ended September 28, 2013,

Hanesbrands operating profit increased 13 percent and diluted earnings per share increased 11 percent. Net sales in the quarter decreased 2 percent. Gross margin expanded to 35.2 percent, up 240 basis points compared with last year’s quarter, and operating margin improved to 14.8 percent.

The activewear segment delivered record profitability with an operating margin of 16.9 percent for the third quarter and 13.1 percent year to date. Retail activewear and gear for sports achieved double-digit operating margins in the quarter. On a constant-currency basis, international segment net sales increased 10 percent and operating profit increased one percent in the third quarter. Direct to Consumer sales for the quarter increased one percent, while operating profit increased 29 percent. This segment’s operating margin for the quarter was 16.2 percent.

Hanesbrands is based in North Carolina. It sells T-shirts, bras, panties, shapewear, men’s underwear, children’s underwear, socks, hosiery, and active wear under brands like Hanesbrands, Champion, Playtex, Bali, and Maidenform. “We had a great quarter with record earnings and strong margins,” Hanesbrands Chairman and Chief Executive Officer Richard A. Noll said. “Our brands are gaining share, our supply chain is generating savings, and our product innovations are creating value. Given our strong earnings momentum, we are raising our earnings guidance for both 2013 and 2014 despite a soft retail environment.”