Hanes Brands reported s 2.5 per cent decline in revenues to $937 million during Q3, FY24 compared to the corresponding period in the previous year.

Despite a 1 per cent decline in net sales in the US, the company attributed its ‘consumer-centric’ strategy with younger consumers as the reason for strong brand momentum. This includes targeted investments and innovations in core brands such as Hanes, Maiden form, and Bali. Meanwhile, international sales increased by 1 per cent.

During the quarter, Hanes brands also finalised the sale of its brand Champion, following its announcement to divest the active wear line to Authentic Brands Group. The sale is a part of Hanes Brands’ strategy to streamline operations and refocus on its innerwear segment.

The sale of the Champion brand and Hanes brands’ sharper focus on core innerwear could support long-term sales growth and margin improvements, says David Swartz, Senior Equity Analyst, Morningstar Research Services.

Hanes Brands also plans to reduce its debt by $1 billion in H2, FY2, largely supported by proceeds from the Champion sale. As of October, the company had already reduced its debt by $870 million. The strong quarterly performance prompted Hanes Brands to raise its full-year projections for operating profit and cash flow, now forecasting $174 million and $250 million, respectively.

Emphasising the company’s progress toward becoming a ‘more focused, simplified business, Steve Bratspies, CEO, notes, Hanes Brands has improved its cost structure, operational efficiency, and inventory levels. These strategic actions

Steve Bratspies, CEO, will allow the company to invest in growth and continue reducing debt through 2025, he adds. The company’s focus will drive revenue growth starting in the fourth quarter, he affirms.