This Apparel Stock Has Quietly Doubled in 4 Months
Hanesbrands (NYSE: HBI), which manufacturers basic apparel and activewear under the Hanes and Champion brands, depends heavily on brick-and-mortar retailers. In 2019, around 82% of U.S. sales were to retailers and wholesalers. About 25% of total sales came from Walmart and Target, 7% came from mid-tier department stores, and 22% came from other U.S. customers, including Costco and DICK'S Sporting Goods .
Given this dependence on physical retail, it's not surprising that the pandemic has wreaked havoc on Hanesbrands' core business. Sales of activewear, for example, were down a whopping 62% in the second quarter. Hanesbrands stock was hit hard in March as investors anticipated a rough road ahead for the apparel company. Shares were cut in half between the end of February and early April, bottoming out at around $7.
Since early April, Hanesbrands stock has entirely recovered, more than doubling from its pandemic low. A rising stock market partly drove this rally. But in the past few weeks, the rally has been fueled by shockingly good results.
Source Fool.com
