Champion constant currency global revenues increased 6 percent in the first quarter (3 percent on a reported basis) due to strong growth in the collegiate channel but would have risen 14 percent without product supply challenges that impacted parent HanesBrands, Inc. Brand sales outside the U.S. were 10 percent higher (4 percent reported) and up 2 percent in the U.S. for the period ended April 2. An estimated $40 million worth of on-hand orders in the U.S. went unfulfilled.
Total first-quarter activewear sales rose 6.3 percent to $386.9 million against $364.0 million, but the segment’s operating profit declined 19 percent to $49.0 million from $60.6 million as the operating margin slid 3.9 percent to 12.7 percent. The sales volume benefit was offset by impacts from higher inflation, merchandise mix and more investments in brand marketing. Activewear price hikes taken by Hanesbrands will be in effect in the third quarter.
