American multinational clothing company HanesBrands Inc, announced results for the first quarter of 2023. The net sales from continuing operations were US $1.39 billion, which includes a US $ 31 million unfavourable impact from foreign exchange rates, a decrease of 12 per cent compared to last year’s strong first quarter results.
On a constant currency basis, net sales decreased 10 per cent due to the macro-driven slowdown in consumer spending in the US and Australia.
The company said that Global Champion brand sales decreased 17 per cent on a reported basis as compared to the prior year, with a 22 per cent decline in the US and a 12 per cent decline internationally.
Steve Bratspies, CEO of the company said, “We delivered first-quarter results in line with our outlook, generated positive cash flow and reiterated our full-year outlook. We continue to make progress on several of our Full Potential initiatives. We expanded our innerwear innovation globally, successfully completed a key technology milestone, progressed on our industry-leading sustainability initiatives and continued to generate cost savings across the organization. We’re confident in the progress we’re making to become a more consumer-centric, data-driven company that consistently generates higher sales and profit growth over time.”
Inventory at the end of first-quarter 2023 declined 1 per cent sequentially to US $1.97 billion. As compared to first-quarter 2022, inventory increased approximately 8 per cent. This quarter represents the third consecutive quarter of improvement in the company’s inventory growth rate as it continues to sell through its higher-cost inventory and benefit from its SKU reduction initiatives.
