Net sales of US-based HanesBrands have fallen by 14 per cent in the second quarter to clock US $ 1.51 billion.
The drop has been attributed to softer-than-expected point-of-sale trends – not to mention the effect of the ransomware attack.
On a two-year basis, the net sales rose by a whopping 75 per cent – and this excluded PPE.
Global Champion brand saw its sales fall by 20 per cent year-on-year (in constant currency) or 23 per cent (on a reported basis). The fall was seen both in the US and across the globe.
Notably, HanesBrands’ gross profit slumped by 16 per cent to US $ 572 million, while gross margin went down from 38.9 per cent to 37.8 per cent.
The adjusted gross profit, excluding certain costs related to the company’s full potential plan, was US $ 573 million. The same was US $ 684 million last year.
Going forward, the company expects Q3 net sales from continuing operations to be around US $ 1.73 billion to US $ 1.78 billion –and this includes a projected headwind of approximately US $ 58 million from changes in foreign currency exchange rates.
Founded in 1901, Hanesbrands owns many clothing brands, which include the likes of Hanes, Champion, Playtex, Bali, L’eggs and Just My Size, amongst others.
