Hanesbrands' fourth quarter tarnishes results
For the third year in succession Hanesbrands claimed a record revenue, though this was primarily due to acquisitions (DBApparel in September 2014 and Knights Apparel in spring 2015). The group's performance in 2015 has actually disappointed analysts. Indeed, Hanesbrands, which is specialised in underwear and activewear, failed to reach its objectives last year.
In the fiscal year closed on 2nd January, Hanesbrands generated a global revenue of $5.73 billion (€5.14 billion), equivalent to an 8% rise. The group however had higher expectations, with a target of $5.9 billion. At constant exchange rates and in like-for-like terms (excluding sales from brands incorporated less than a year ago), revenue is actually rather stable, with a 1% downturn in both the underwear and activewear segments.
It was the highly disappointing fourth quarter which spoiled the party, with a revenue decrease of 7% (-5% at constant exchange rates and in like-for-like terms).
As for EBIT, Hanesbrands reported a 13% rise, reaching $861 million (€772 million). However, excluding the 2014 and 2015 acquisitions, EBIT's growth rate was a more modest 6%, at $595 million (€534 million). The group nevertheless announced it expects its EBIT to enjoy double-digit growth again in 2016.
As for the 2016 revenue forecast, Hanesbrands stated it plans to reach the objective it failed to reach in 2015, i.e. $5.9 billion.
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