HanesBrands reveals supply challenges in quarterly update

HanesBrands has flagged inflation and logistical headwinds as key challenges for the period ahead, including in international markets such as Australia.

In its first quarter 2022 results update, the apparel giant reported a 5% increase in net sales from continuing operations of $ 1.5 billion.

International sales, on a constant currency basis, increased 7% compared to the prior year driven by growth in Europe, the Americas and China.

Constant currency sales declined in Japan due to ongoing COVID-related pressures and in Australia due to product delays.

Including the $ 30 million impact from unfavorable foreign exchange rates, international sales increased 1% on a reported basis.

CEO Steve Bratspies praised his team for delivering a strong quarter in the challenging environment.

“At the same time, the global operating environment has deteriorated significantly over the past three months, with accelerating inflation, continued COVID-19 disruptions and logistical challenges,” he said.

“In this environment, we are highly focused on executing in the areas we control. We are unwavering in our commitment to investing in our people, brands and technology.”

Challenges in the global operating environment have resulted in an additional $ 65 million of net cost headwinds relative to the company’s prior full-year outlook.

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