HanesBrands’ net sales for Q1 has gone up eight per cent. GAAP operating profit increased one per cent. Adjusted operating profit increased two per cent. Adjusted EPS increased four per cent. Total company consumer-direct sales, defined as brand retail stores and all online business, increased 16 per cent in the first quarter. E-commerce sales increased for each of the innerwear, activewear and international segments.
The company’s debt leverage at the end of the quarter was 3.5 times adjusted ebitda, down from 3.9 times a year ago. The company continues to expect the leverage ratio to decline to 2.9 times by the end of the year, which is within the company’s target range. US innerwear segment sales decreased three per cent in the first quarter. Operating profit increased three per cent with the operating margin improving 130 basis points to 22 per cent. Sales of innerwear basics increased nearly two per cent. Sales increased for underwear, socks, and shape wear, while the company’s bra turnaround initiatives are continuing. Sales of innerwear in the online channel increased six per cent.
US activewear segment first quarter sales increased 17 per cent and operating profit increased 14 per cent. Operating margin declined 30 basis points.
