Stephen Bratspies, CEO of HanesBrands, hinted about strategic alternatives for the company’s flagging Champion business but offered few specifics when speaking to analysts during the apparel company’s year-end conference call.
“[…] the process is progressing as expected,” Bratspies commented, adding, “We continue to evaluate the right path forward as we’ve seen strong interest from a broad and diverse group of global parties.”
Global Champion sales declined by 23 percent in Q4 and are forecast to decline more in H1/24 as excess inventories are cleaned up further ahead of a Fall/Winter 2024 product launch by the brand. Bratspies said the company is not surprised about Champion’s short-term prospects as it takes steps to strengthen the brand going forward, including an increased marketing spend this year and other work to improve its profitability. In Q4, HanesBrands took a $14.3 million restructuring charge related to its global Champion performance plan that surpassed $88 million for the FY. After two consecutive yearly declines, Champion’s annual global sales are in the $1.7-$1.8 billion range, the company confirmed.
“The fall/winter line that we’re going to be introducing for Champion has gotten some really strong response from pinnacle accounts which is really important to set the tone for the brand,” Bratspies commented. “We’re going to be ready for a replenishment chase model in the back half of the year. And we’re going to be spending behind the brand and really support this.”
HanesBrands’ Activewear segment had an operating loss of $11.2 million against a profit of $28.4 million in Q4 ended Dec. 30 as segment sales slid by 24 percent to $285.8 million from $376.7 million. For the full FY, the Activewear segment operating profit fell by 87 percent to $20.5 million from $153.7 million on a 19.5 percent decline in revenues to $1.25 billion from $1.56 billion.
