About Gfsi, LLC
Hanesbrands Inc. is a leading marketer of basic apparel. It designs, manufactures, and sells bras, hosiery, men's and women's underwear, socks, and other intimate apparel under brand names such as Hanes, Champion, Bali, Just My Size, L'eggs, Playtex, and Wonderbra. Hanesbrands is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific. Hanesbrands also makes basic outerwear, such as T-shirts and licensed logo apparel for college bookstores under the Champion and Gear for Sports labels, and has a license agreements with Polo Ralph Lauren. The lineup is sold to wholesalers, major retail chains (Walmart and Target), and through Hanesbrands' own outlet stores and Internet sites. Operations in the US account for almost 65% of the company's total sales.
Hanesbrands divides its operations into three segments: Innerwear, Activewear, and International.
Innerwear accounts for about 35% of revenue and includes core apparel products, including men's underwear, women's panties, children's underwear, and socks, and intimate apparel, such as bras and shapewear. Major brands in the Innerwear segment include Hanes, Champion, Maidenform, Bali, Just My Size, Playtex, and products sold under license agreements with Polo Ralph Lauren, and Maidenform.
The International segment includes innerwear, activewear, hosiery, and home goods products sold outside the US. This segment represents over 35% of the company's total sales. Major brands in this segment that are not marketed in the US are Bonds, DIM, Sheridan, Bras N Things, Nur Die/Nur Der, Lovable, Berlei, Abanderado, Shock Absorber, Zorba, Explorer, Sol y Oro, andPolo Ralph Lauren.
Activewear (over 25%) makes and sells shirts, fleece items, sports bras, thermals, and teamwear under the brands Champion, Hanes, Alternative, Gear for Sports, Just My Size, and Hanes Beefy-T.
Based in Winston–Salem, NC, Hanesbrands sells its products globally, ringing up over 65% of its sales in the Americas region, followed by Asia Pacific and Europe, generating almost 20% and about 15% of total sales, respectively. The company operates over 45 distribution centers and about 45 manufacturing facilities in 40 countries. It also operates close to 245 retail and direct outlet stores in the US and Puerto Rico and nearly 755 internationally (outside the US).
Sales and Marketing
Hanesbrands is highly dependent on its two largest customers, Walmart and Target, accounting for about 15% and over 10% of total sales, respectively. Hanesbrands also allies with mid-tier stores, including Kohl's, J. C. Penney, Macy's, and Belk, which focus on higher-income consumers and the sale of apparel rather than other consumer goods. Its L'eggs and Hanes brand underwear are also sold in food, drug, and variety stores. Hanesbrands also sells apparel to the US military for sale to soldiers and through discount chains, such as Dollar General.In 2019, over 75% of total sales were to third-party brick-and-mortar customers and almost 25% of total sales were consumer-directed.
Advertising expenses were $163.8 million, $152.7 million and $155 million in 2019, 2018 and 2017, respectively.
Hanesbrands' annual sales and profits have been growing over the past few years. Net sales for fiscal 2019 amounted to $7 billion, a 2% increase from $6.8 billion the previous year.
Net income was $600.7 million in 2019, an 11% growth compared to the previous year.
Cash at the end of fiscal 2019 was $328.9 million, an decrease of $104.1 million from the prior year. Cash from operations contributed $803.4 million to the coffers, while investing activities used $109.7 million, mainly for capital expenditures. Financing activities used another $824 million mainly for loan payments.
Hanesbrands continues to follow its Innovate-to-Elevate strategy that involves leveraging its brand power, manufacturing platforms, and low-cost global supply chain. The company has also been expanding its global business by acquiring top brands in its less-tapped markets. Going forward the company will focus on fast-growing key geographies outside the US including Europe, Australasia, Japan, Canada, Mexico, China, and Brazil.
Key to Hanesbrands' success is the ability to react to changing customer needs and industry trends. Using insights in consumer demand in the basic apparel industry, the company develops new products within its existing lines and modifies core products to make them more appealing. The company focuses on identifying 5- to 10-year, long-term megatrends and incorporating those trends in its manufacturing platforms. Tagless apparel platform, Comfort Flex Fit apparel platform, ComfortBlend fabric platform, temperature-control X-Temp fabric platform, FreshIQ advanced odor protection technology fabric platform, SmoothTec fabric technology, Cool Comfort fabric technology and DreamWire underwire technology incorporate big-idea innovation to span brands.
To drive sales growth, the company is focusing on promoting its Champion brand apparel, especially in Europe and Asia, and its business through consumer-direct channels, such as its own stores and online channels.
Hanesbrands' large scale of operations gives it a competitive advantage. The company's global supply chain spans both the Western and Eastern hemispheres and includes a combination of owned, contracted, and sourced manufacturing operations that provide a reliable source of supply and reduces product cost. Plans are in place for further optimization in the size, scale, and production capabilities of its supply chain.
9700 Commerce Pkwy
Lenexa, KS 66219-2402
Phone: 1 (913) 693-3200
Employer Type: Privately Owned
Senior Vice President sls: Mike Gary
CIO, IT Directors: Mike Hermerding
Vice President Of Creative Design: Greg Johnson
Employees (This Location): 460
Employees (All Locations): 802