Hanesbrands, Inc., the American fashion retailer, has announced its Q3 2020 results!
While the retailer has cited strong sales in the report, it has also called for an in-depth business review to prepare for long-term growth strategy.
The net sales for Q3 that ended 26 September were US $ 1.81 billion compared to US $ 1.87 billion recorded in the third quarter of 2019. That’s down by 3 per cent Y-o-Y, but US $ 150 million more than what analysts predicted!
Notably, Hanesbrands sold US $ 179 million in personal protective garments across the globe. That’s also been enough to help increase the innerwear maker’s revenue beat estimates.
Excluding the sales from the exited C9 Champion as well as DKNY apparel license in addition to the impact of changes in foreign exchange rates, total constant-currency net sales this quarter rose by 2.6 per cent.
The innerwear sales rose by 37 per cent – all thanks to protective apparels. But, even otherwise the rise was 8.4 per cent, which is not bad.
However, massive slump of 41 per cent in activewear segment compensated for the good show from the innerwear segment. The fall in activewear sales was expected as lots of sports events were called off this year.
Talking about the outlook, the retailer said that it expects to earn between US $ 1.60 and US $ 1.66 billion in Q4.
However, with several countries in Europe going into lockdown again and cases rising in the US as well, the question remains will Hanesbrands be able to realise its goals next quarter.
Wait and Watch!
