- Oops!Something went wrong.Please try again later.
HanesBrands (HBI) posted stronger-than-expected earnings for the third straight quarter. The company pulled in $1.51 billion in net sales, which represented a 15% year-over-year increase. Innerwear net sales were up 35% year over year, pulling in $570.4 million. In addition, net activewear sales came in at $364 million, up 26% year over year. The North Carolina-based company also posted earnings per share of $0.39 vs. $0.25.
Running on this momentum, Hanesbrands rolled out a new three-year outlook, with plans for the company to increase its compound annual growth rate revenue by 6% from $6.25 billion to $7.4 billion by 2024, led by the Champion brand.
That means Champion must increase its annual compound growth rate by 14% by 2024, becoming a $3 billion global brand in the process.
“We’re confident in the market we want to serve, and we’ve embraced the challenge of brand mindset. At Champion, we take a bold and unique approach when it comes to how we define sport for us. Sport is first and foremost about having fun, being playful and including others. But hey, when the competition heats up, we’ll also rise to the occasion,” said Hanesbrands Global Activewear President John Ram on the earnings call.
Ram says that the key to Champions’ growth will come down to four key actions: forging a deeper connection with consumers, creating compelling products, focusing on growth in key geographies, and expanding its channels.
HanesBrands' innerwear business will also be a big focus going forward, with the company looking to grow the division by approximately $200 million.
“Another great opportunity is Champion inner wear inner wear has been a rapidly growing business for champion more than doubling between 2018 and 2020,” said Ram. “We see significant potential in socks, underwear and loungewear and will benefit from leveraging HBI’s deep enterprise expertise in this category.”
As part of its strategy, Hanes will bolster its digital platform. “HanesBrands is an amazing company with a portfolio of strong, iconic brands and significant and sustainable competitive advantages,” said CEO Steve Bratspies. “We are putting the consumer at the center of everything we do. We’ll do this by investing in innovation that delivers products that meet consumers’ needs and by creating a seamless experience that lets consumers shop for our products how, when and where they want to shop.”
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.