For the second quarter Hanes Brands’ net sales increased 12 per cent. Organic sales improved sequentially for the second consecutive quarter and the company expects organic sales to turn positive and contribute to growth in Q2. Hanes is a marketer of everyday basic apparel under world-class brands.
On a GAAP basis, second quarter operating profit increased three per cent and diluted EPS increased 38 per cent. When excluding pretax acquisition-related and integration charges, adjusted operating profit and adjusted EPS each increased four per cent. The company’s acquisitions are contributing value as expected and cash flow efforts, including disciplined inventory management, are generating strong results. Global online channel sales increased 25 per cent and made up nine per cent of total sales.
Year-on-year segment sales decreased less than three per cent in the second quarter compared with lower sales of six per cent in the first quarter of 2017 and eight per cent in the fourth quarter of 2016. There was sequential improvement for both the basics and intimates businesses. Operating profit declined eight per cent. The company expects total net sales in Q3 to increase 2.5 per cent compared with Q3 of 2016.