HanesBrands, a leading global marketer of everyday basic apparel under world-class brands, has announced results for the first quarter ended April 1, 2017. During the quarter under review, net sales stood at US $ 1.38 billion, marking an increase of 13 per cent upon acquisition contributions.
On a GAAP basis for continuing operations, the company reported first-quarter operating profit of US $ 121 million, down 1 per cent from the corresponding period last year. When excluding PRETAX charges related to acquisition integrations, adjusted operating profit of US $ 160 million, up 9 per cent, was reported.
Net cash from operations also improved by US $ 262 million in the reporting quarter compared with a year ago – a use of cash of US $ 23 million this year versus a use of US $ 285 million a year ago.
“We are off to the strong start of 2017 that we sought. We had one of our best first quarters for cash flow as we executed a disciplined working capital plan. Acquisitions, our Champion brand and online sales are contributing to growth as we weather expected challenges in the retail environment. In addition, we are pleased to launch Project Booster, which we believe provides a clear roadmap to accelerating growth and value creation,” said Hanes Chief Executive Officer Gerald W. Evans Jr.
Also Read – HanesBrands expects Q1 net sales of US $ 1.38 billion
Project Booster is expected to drive the company’s Sell More, Spend Less, Generate Cash business strategy. By 2020, the effort is expected to generate approximately US $ 300 million of incremental annual net cash from operations and US $ 100 million in net cost savings after annualized growth reinvestment of US $ 50 million.
