Masks Won't Save Hanesbrands' Holiday Quarter
Sales of masks and other protective garments totaled $179 million in Hanesbrands' (NYSE: HBI) third quarter, enough to propel the apparel manufacturer's revenue ahead of analyst estimates. The core innerwear business also performed well, but the activewear business continued to struggle as the pandemic reduced demand for sports apparel. Hanesbrands' fourth quarter will be worse than expected due to the pandemic-related headwinds.
Hanesbrands reported total revenue of $1.81 billion, down about 3% year over year and $150 million higher the analysts expected. Excluding sales generated from the exited C9 Champion line and the DKNY intimate apparel license, revenue was up 2.6% adjusted for currency.
The innerwear segment was the star of the show, with total sales up 37% year over year. Much of that growth came from protective garments, but the segment still grew by 8.4% excluding that category. Positive point-of-sale trends and inventory restocking at retailers drove the sales increase.
Source Fool.com
