For the third quarter of 2016 Hanes Brands reported a net margin of 8.55 per cent and a return on equity of 61.39 per cent. The firm, an innerwear, active wear and basic apparel retailer, earned $1.76 billion during the quarter. Revenue was up 10.7 per cent compared to the same quarter last year.
Strong e-commerce business and replenishment-driven nature of products as well as strategic buyouts helped it to maintain topline. However, sales have been soft in the active wear and direct to consumer segments for the past few quarters. Limited international exposure and a deep focus on premium brands remain a concern.
It was able to keep its trend of posting year-on-year growth in both top and bottom lines during the period. Hanes Brands’ dividend payout ratio is presently 33.85 per cent. It posted in line earnings in the third quarter of 2016 after reporting a negative earnings surprise in the second quarter.
About 94.28 per cent of the stock is currently owned by hedge funds and other institutional investors. The company, based in the US and founded in 1901, has been consistently innovating to maintain market share and a loyal customer base.